Risk Committee

Purpose

Board of Directors; A Risk Committee has been established to review issues related to Bank-wide risk management, including but not limited to business risk, credit risk, market risk, operational risk, legal risk and reputation risk, and to make recommendations to the Board of Directors and the Audit Committee when necessary.

Composition of the Committee

Committee; It is established and authorized by the Board of Directors in accordance with the Bank's Articles of Association and other relevant regulations. The committee consists of at least two members elected from among the members of the Board of Directors, provided that they do not have executive duties. The Committee may invite Bank managers to its meetings when deemed necessary and obtain their opinions. All resources and support required for the Committee to fulfill its duties are provided by the Board of Directors.

Working Principles of the Committee

• To evaluate all risks that the Bank is exposed to, including but not limited to credit risk, market and liquidity risk, operational risk, to form the Committee's opinion and to share it with the parties within the Bank that the Committee deems appropriate,
• Reviewing risk reports as well as other reports showing the bank's general risk levels,
• To make committee evaluations regarding risk policies and relevant standards, methodologies and models used in measuring and managing risks throughout the bank,
• Evaluating the Bank's comprehensive Risk Appetite Policy, including credit risk, market risk and operational risk,
• Evaluating risk-related issues submitted by other Board Committees and forming and sharing the Committee's opinion with them,
• Reviewing and making recommendations on risk tolerance levels and portfolio concentration limits, including limits associated with activity sector, geography, asset quality and other issues,
• Contributing to the compliance and implementation of the strategies and policies approved by the Board of Directors,
• To work with the Board of Directors to ensure that the Bank's strategy, liquidity and capital plans are consistent with the Risk Appetite Policy and that significant risks are included in the Bank's strategy plan,
• To regularly discuss the Bank's significant risks collectively and specifically for each type of risk,
• Regularly reviewing the impact of risks on capital, revenues and liquidity under normal and stressful conditions,
• To ensure that major risk issues are conveyed to the Audit Committee and the Board of Directors in an effective and timely manner and to monitor that corrective action is taken by the Bank management in a timely and appropriate manner,
• Contributing to compliance with international standards and best practices, especially local legislation regarding Risk Management,
• Reviewing risk reports as well as other reports showing bank-wide portfolio trends,