KBTU Hosts "Risk Management Case Competition" for Students and Master’s Candidates

The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market, in collaboration with the Kazakh-British Technical University (KBTU) and the State Credit Bureau, has organised the "KBTU Risk Management Case Competition" with the support of financial organisations across Kazakhstan. The competition was open to students and master's candidates from higher education institutions in Kazakhstan.

The case competition centred on the development of an analytical service for modelling borrower default risk and presenting the results. The challenge provided a valuable opportunity for students to apply their theoretical knowledge in a practical, real-world setting involving risk management.

"Modeling is a vital tool for effective risk management," emphasized Olzhas Kizatov, Deputy Chairman of the Agency. "Risk modelling is a valuable tool for identifying and assessing potential threats, as well as providing insights for making informed decisions that minimise losses and optimise profits."

Mr. Kizatov explained that statistical and mathematical models are used to analyse large datasets, identify potential correlations and causal relationships. This process results in more accurate risk assessment and classification, thereby improving decision-making in financial institutions.

The Agency employs modelling and machine learning algorithms to assess the creditworthiness of both corporate and individual borrowers. Regular banking supervisory processes, such as the Asset Quality Review (AQR) and stress testing, rely on model-based risk metrics to evaluate the stability of the banking system.

The Agency utilises these models to analyse a substantial volume of data from the banking sector, encompassing over 85% of the banking system's assets. This enables the assessment of the resilience of financial institutions in the context of current conditions and potential economic stress scenarios.

The KBTU Risk Management Case Competition provided participants with valuable practical experience in solving real business challenges, access to consultations with experienced risk managers, and opportunities to expand their professional networks. Furthermore, it facilitated the exploration of new career avenues for students, nurturing the next generation of risk management professionals in Kazakhstan.