Company: SOCAR Türkiye Enerji AŞ
Company Description: As SOCAR Turkey, we operate in the petrochemicals, refining, natural gas trade, transmission and distribution sectors as Turkey's largest integrated industrial group. We transfer our production power to a sustainable future with our value chain extending from the source to the end user within the framework of the clustering model.
Nomination Category: Management Categories
Nomination Sub Category: Award for Innovative Management in Manufacturing Industries - Organizations with 100 or More Employees
 Nomination Title: SOCAR Türkiye Middle Office Risk Management Project
- Provide an essay of up to 625 words describing the nominated executive's or management team's innovative achievements since July 1 2021. Describe the innovative achievements in at least three (3) of the following areas: organizational management, board leadership, brand leadership, business recovery, financial management, growth management, hiring & employee development, investor relations, leadership development, and the promotion of innovative practices:
Total 622 words used.
In the dynamic realm of the energy industry, innovative management practices are imperative for sustained growth and competitive edge. At SOCAR Türkiye, we have integrated a pioneering risk management software, catalyzing a paradigm shift in how we address challenges and navigate the evolving landscape of modern energy management.
In recent years, the escalation of market volatility has emphasized the necessity for advanced financial risk management. At SOCAR Türkiye, our Middle Office team plays a pivotal role in this area. We've adapted a digital system to meet modern demands and address uncertainties in the global market by risk management tool. Conventional non-digital methods required substantial manpower and real-time monitoring due to the Turkish Economy's volatility. As a result, we shifted to a more agile approach, enhancing control frequencies and introducing a mobile interface for rapid decision-making by top management, along with implementing preventive controls to bolster our financial risk strategies.
We have embarked on a transformative journey by leveraging digital platforms for metric calculation and proficient financial risk management. We are grateful for the Stevie MENA Awards as it has allowed us to evoke the contributions that our project has revealed.
Risk Management:
- Real-time metrics enable our financial management to make timely, informed decisions. A mobile executive dashboard ensures easy access to information for top management, enhancing our competitive edge in a dynamic environment, shifting from detective to preventive controls.
Quotation-1: SOCAR Türkiye Treasury Coordinator (Trader): “By combining innovation and accessibility, our Middle Office team has transformed the way we measure risk. Our cutting-edge middle office software not only enhances risk assessment but is also accessible on mobile devices, empowering our team to make informed decisions from anywhere. As SOCAR Türkiye, we are proud to lead the way in modernizing exposure management for a brighter financial future.”
Financial Management:
- Our digital platform calculates financial metrics accurately and swiftly, reducing errors and improving critical financial data timeliness. Adhering to international standards, our innovative approach significantly curtails financial risks. Interest rate exposure improved from 40,1% to 28,0% at the start of 2023. The Foreign Exchange Liquidity metric also progressed from 87,8% to 95,3% within ten months of 2023.
Resource Allocation Management:
- A whopping 36% efficiency is recognized in 2023 which is equivalent to 2,356 man-hours/year.
Change Management:
- Transitioning from traditional periodic checks to a digital platform enables real-time monitoring, significantly improving our oversight of financial transactions. This heightened frequency ensures the immediate detection of anomalies or potential risks, allowing for proactive mitigation and minimizing the impact of issues. Notably, we've increased the frequency of financial counterparty risk measurement by 14 times, while controls for currency, interest, and liquidity risks have been elevated by 4, 30, and 30 times, respectively.
Quotation-2: SOCAR Türkiye Risk Director: “The digitalization project of the Middle Office is a pivotal move towards integrated, real-time risk management, which creates an exciting opportunity to embed superior risk management capabilities directly into various ERP systems. We're set to revolutionize how we access real-time insights, ensuring decisions across all sectors are informed, strategic, and risk-aware. This synergy is instrumental in fortifying effective risk management and informed decision-making at every operational level.”
Project Management:
- The Middle Office Team collaborated with various departments, ensuring successful project launch as per the outlined plan. The sustained team spirit during the 1.5-year implementation stands as a significant achievement.
At SOCAR Türkiye, our collaborative approach has revolutionized our financial management. Through innovative integration of cutting-edge risk management software, we've implemented agile methods for precise financial calculations and advanced risk management. Focused on change management, project execution, resource allocation, and team unity, we've significantly improved control, decision-making, and efficiency. Having successfully implemented this new approach, and receiving positive feedback from stakeholders is truly rewarding.
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