PASHA_BANK_ANNUAL REPORT 2022

58 PASHA Bank 2022 Annual Report Corporate Governance Committee The Corporate Governance Committee was established to ensure the management of the Bank in a responsible, fair, transparent, and accountable manner, so as to protect the rights and interests of all stakeholders and shareholders in line with PASHA Bank’s identified objectives, the Banking Law, the Capital Markets Law, and relevant regulations, as well as other laws, the Articles of Association, the Bank’s internal regulations, and banking ethics; and of monitoring the Bank’s compliance with corporate governance principles; and submitting proposals required to the Board of Directors. Below is the existing structure of the committee: Name-Surname Committee Position Furkan Evranos Chairperson Shahin Mammadov Member The Committee continues its activities within the framework of the Corporate Governance Committee Regulation. It convenes as required by business needs, and at least once a year. Board of Directors’ Evaluation of Committee Effectiveness The independence declarations of Board Members who meet the independence criteria described in CMB’s Corporate Governance Principles No: 4.3.6 have been presented to the Board of Directors. In 2022, within the scope of evaluation of PASHA Bank’s corporate governance practices, Corporate Governance Committee evaluated the Annual Report of Investor Relations Department, Annual Report of Board of Directors and Annual Report of the Bank, Corporate Governance Principles Compliance Report, Corporate Governance Rating Report, internal regulations of PASHA Bank and the election of rating agency for Corporate Governance Rating. The Committee presented the results of its monitoring activities to the Board of Directors. These results included its Evaluations of Environmental, Social, Corporate Governance Activities, Investor Relations Activities, Activities of Board of Directors and Board of Directors Committees. Risk Management Committee The Risk Management Committee was established to ensure that PASHA Bank’s risk identification, evaluation, measurement, control, reporting and monitoring processes and capabilities are effective, adequate, and reliable, and to advise and assist the Board of Directors on this matter in meeting its duties and responsibilities. Tasked with establishing an effective risk management system, the Risk Management Committee sets out PASHA Bank’s risk management policies and strategies in accordance with the Capital Markets Legislation and the principles contained in the BRSA regulations; reviews the types of credit, market, strategic, operational, and financial risks that it is exposed to; monitors implementations of the risk management strategy; and presents important risk issues to the Board of Directors. It also evaluates, and reports to the Board of Directors, the issues identified on the topics of managing such risks in accordance with the corporate risk- taking profile of PASHA Bank, taking them into account in the decision- making mechanisms, and establishing and integrating effective internal control systems in this direction. Risk Management Committee consist of the following members as of 31 December 2022: Name-Surname Committee Position Ebru Oğan Knottnerus Chairperson Farid Mammadov Member Kamala Nuriyeva Member Information on the Activities of the Board of Directors and the Committees The Committee convened twice in the accounting period and made resolutions on relevant items of the agenda. Meeting Date Number of Attending Members Meeting Type 25/02/2022 2 Electronic 18/05/2022 2 Electronic