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What Is “short of luck” and How To Deal With It: Dmitry Leus On The Competitive Strategy In The Time Of Crisis

Speaking of niche commercial banks under the current conditions of the Russian market, Dmitry Leus states that a structured, transparent, intuitive and proven risk management scheme is the primary survival strategy. Dmitry shared this opinion with Bankir.ru based on his own experience, as well as on rather clouded prospects for a relatively young Russian market. The full text of the interview can be found by the link:

http://www.bloomberg.com/research/stocks/private/person.asp?personId=145225790&privcapId=143546828&previousCapId=143546828&previousTitle=OAO%2520Bank

The first rule of the Banking Club…

As Dmitry has it, one of the first things a banker should learn back in university is that “Economy is a choice!” Such seemingly trivial rule becomes apparent during the crisis. To stay afloat, you must be able to motivate shareholders and owners of the bank to keep and grow their business.

Nothing venture – the business is closed.

Working in the banking business means being prepared to risk. But again, it is up to everyone’s choice. Describing his usual working day, Dmitry Leus says that one can look to a good result only if he works more than needed. Perhaps attentiveness is the most important quality a banker must possess. There are many peculiarities in the banking business, which initially are not evident. Ordinary negligence may affect financial performance. That is why it is very important to carefully monitor all aspects of the work: from economic activities to large contracts. Dmitry strongly believes that only under the close supervision of owners a financial structure can yield the predicted results.

Such self-discipline allows financial structures to timely respond to threats to business entailed by the crisis, and to perform the primary task – to stabilize the structure according to the current situation and reasonably evaluate the existing risks.

It is misguided to believe that risk management is a skill to count well using all known formulae. According to Dmitry Leus, the main objective of risk management is the ability to analyze the market and current economic processes, to see prerequisites for those crises that tomorrow will be a shock for the whole world, as well as to be able to avert this potential threat.