BAKU, Azerbaijan, October 20. Adapting to changing conditions is becoming more important in risk management, CEO at Bir Ecosystem, Farid Huseynov, said during the Sustainable Business, Corporate Governance, Risk, and Compliance (GRC) Conference held in Baku on Tuesday, Trend's correspondent reports from the event.
He noted that Azerbaijan’s geographical location and geopolitical circumstances directly influence the operations of companies active in the country, including their approaches to risk management.
"The primary challenge today is not merely the emergence of new risks. Risks are becoming integrated, intertwined, and transformed. This reflects the rapid pace of change in the modern world," Huseynov pointed out.
He compared this process to the "Red Queen effect," described in Lewis Carroll’s “Through the Looking-Glass”. He explained that, according to this concept, one must remain in constant motion just to maintain one’s current position, and develop even faster in order to move forward.
According to Huseynov, alongside artificial intelligence and other technological innovations, issues such as cybersecurity, cyberattacks, sanctions regimes, and geopolitical shifts now occupy a significant place on the corporate agenda.
He pointed out that the impact of geopolitical processes can also manifest in the form of cyberattacks. Noting that large-scale Distributed Denial of Service (DDoS) attacks against certain infrastructure have been recorded in Azerbaijan in recent days, Huseynov emphasized the importance of a responsible and coordinated approach to such threats.
"Previously, establishing a stable risk management system was crucial for us. Now, however, I believe that a risk management system capable of adapting to constantly changing conditions is of even greater importance," he stated.
Huseynov stressed that this approach is particularly significant for Kapital Bank, which serves a broad customer base, and for the ecosystem as a whole. According to him, this ecosystem serves over 5 million citizens living in Azerbaijan, as well as foreign nationals present in the country. This scale creates significant opportunities while also demanding a high level of responsibility.
The CEO also highlighted three key pillars of the compliance and risk management strategy. Stating that the first area involves a proactive approach, Huseynov noted that compliance shouldn’t be limited to reacting to events that have already occurred; rather, it must identify potential risks in advance, assess various scenarios, and implement preventive measures.
Regarding the second area, the application of technology and cybersecurity, he pointed out that real-time analytics and artificial intelligence offer significant capabilities for identifying risks. At the same time, he emphasized the importance of ensuring that the use of artificial intelligence aligns with ethical principles.
"Cybersecurity is no longer merely a technical task for the information technology department. It's a key strategic issue that requires attention at the highest level of corporate leadership," Huseynov remarked.
According to him, the third area concerns adapting to changing conditions and shaping corporate culture. Companies should integrate the principles of risk resilience, accountability, and collaboration into the very fabric of their corporate culture.
Huseynov noted that the integration of these principles into the organization’s operational model is essential for ensuring sustainable development.