Compliance is the foremost duty and responsibility of all managers and employees of the Bank at any level. The coordination of functions and
activities regarding compliance executed in the Head Office Divisions and Branches of the Bank is managed through the corporate compliance
activities conducted within the Corporate Compliance Division, which reports to the Board of Directors.
Corporate Compliance Division operateswith the purpose to providemaximumcontribution in order tomanage the compliance risk and control
this risk in an appropriate and efficient manner and in this regard to execute andmanage the activities of the Bank continuously in compliance
with the relevant laws, regulations and standards.
issues are conducted within the Corporate Compliance Division, which consists of three sub-units, namely, Regulatory Compliance, Banking
Activities Compliance and Anti-Money Laundering Compliance.
The duties and responsibilities of the Compliance Officer as stated in the Prevention of Laundering Proceeds of Crime Law and other related
regulations in effect are fulfilled by the Head of Corporate Compliance Division, who is the legal “Compliance Officer” of the Bank as well. The
activities regarding the prevention of laundering proceeds of crime and finance of terror in our Bank are executed in an express and efficient
manner within the context of related legislations and the Bank’s Policy and the Compliance Program, which have been prepared in accordance
with these legislations.
Bank’s Compliance and Compliance Risk Management Policy and Prevention of Laundering Proceeds of Crime and Finance of Terror Policy are
stated in “Investor Relations / Corporate Governance” link at our Bank’s website
in English and Turkish.
The results of the activities regarding compliance are also regularly monitored and evaluated by the senior management and the Board of the
Risk Management
Besides banking activities, both financial and non-financial risks encompassing the whole group required to be analyzed, monitored and
reported from the standpoint of group risk management in addition to that of banking-specific risk management principles. This aspect of risk
management, beyond regulatory requirements has become an industry standard for corporate governance.
The risk management process, organized within the framework of advanced risk management methodologies and favors a common risk
management culture throughout the establishment, is structured to emphasize good corporate governance, assuring independency of units
responsible for monitoring and controlling risk fromexecutive functions, so that risk definition, measurement, analysis, monitoring, reporting,
and control functions are carried out within the same framework.
A general assessment of risk by categories suggests that the most significant risk Bank was exposed in 2012 was credit risk, just as was
also the case in 2011. This was followed by market risk, especially interest rate risk. In 2012, capital allocation was done for nonfinancial
operational risk according to framed policy beside financial risk. On the other hand, it is observed that the most common risks inherited in the
banking processes are related to information technology. As the activities are maintained mainly with the support of information technology,
information technology risk should be monitored closely.
The process of riskmanagement and the functions involved in that process are among the highest-priority responsibilities of the İşbank Board
of Directors. Acting through the Risk Committee, the Bank Credit Committee and the Assets & Liabilities Committee together with the Risk
Management Division in its capacity as a functional component of risk management are engaged in efforts to bring the Bank into compliance
with Basel standards. Sub-committees of Risk Management Division are Asset-Liability Management Risk Unit, Credit Risk and Economical
Capital Unit, Operational Risk, Model Validation and Subsidiary Risk Unit.
Prof. Dr. Savaş Taşkent
Füsun Tümsavaş
Member of the Board and the Audit Committee
Vice Chairman of the Board and
Chairman of the Audit Committee
Audit Committee’s Assessments on the Operation of Internal Control,
Internal Audit and Risk Management Systems and Its Activities in the
Reported Period
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