Risks of failing to achieve the Bank's objectives can be reduced only if an effective internal control system is in place. Effective internal control is ensured through the formation of appropriate management control and a control culture (control environment). The control environment in the Bank is a complex of standards, processes, and structure that provides the baseline for implementing internal controls across the entire Bank.

The control environment of the Bank is based on the following principles:

-     The Board of Directors, the Management Board, and the management of the Bank demonstrate by their own example a commitment to integrity and ethical values.

-     The Board of Directors demonstrates independence from the Management Board of the Bank and exercises oversight over the development and effectiveness of the internal control system.

-     The Management Board of the Bank develops the organizational structure, lines of accountability, and adequately allocates appropriate authority and responsibility to achieve the Bank's objectives.

-     The Bank demonstrates a commitment to attracting, developing, and retaining qualified personnel in accordance with the Bank's objectives.

-     The Management Board of the Bank formally allocates responsibility for the functioning of the internal control system among all interested parties.

-     Management control and control culture characterize the general attitude, awareness, and practical actions of the Board of Directors and the Management Board of the Bank aimed at creating and effectively operating the internal control system.

The control environment is formed by the Board of Directors and the Management Board of the Bank on the basis of adherence to ethical principles, standards of professional activity, and corporate governance, which, combined with their statutory duties and responsibilities, ensure adequate control by the Bank's management bodies.

The control environment of the Bank also extends to the processes of managing sustainable development and climate risks. The Board of Directors and the Management Board ensure the integration of ESG factors into the internal control system, decision-making, and corporate culture, including oversight over the reliability of non-financial reporting.