Risk Analysis Service

The Bank of Russia established the Risk Analysis Service on 29 April 2016, following the relevant decision of the Bank of Russia’s Board of Directors.

The Service performs:

• independent remote analysis of credit and non-bank financial institutions’ risks carried out within supervision and control, at the level of the targets of assessment, based on reporting and other information, including from open sources, published in accordance with Russian laws;
• expert examination of collateral accepted by credit institutions as loan security, verification of appraisal reports prepared by appraisers, and assessment of assets’ market or fair value.

Key areas of risk analysis:

• analysis of credit risks of major borrowers — legal entities and major groups of companies.
• assessment of credit risk in the mass segment (loans to legal entities and individual entrepreneurs; retail loan portfolios of credit institutions);
• analysis of market risks: securities issuers’ financial standing, securities portfolios, centralised data analysis;
• assessment of the quality of credit institutions’ operation risk management systems, including the quality of credit institutions’ plans aimed at ensuring the continuity and recovery of their operations.

In order to enhance the quality and depth of risk analysis, the Bank of Russia is extensively modifying approaches to the collection and processing of credit institutions’ original information, and the automation of the big data analysis process using advanced technologies, and is expanding the scope of usage of open source information in its activity.