Traversing the Financial Industry Through War and Market Volatility

Our ‘Leading Through Uncertainty’ series explores how senior leaders manage continual complexity and ambiguity. In a world where change is the only constant, we spotlight inspirational stories of leadership in uncertain times. 

Pavel Haskovec joined Ukreximbank as a Member of the Management Board in July 2024, introduced by Odgers’ Tetiana Bidnenko and Anna Kuzenkova. They joined Pavel after some time in his role to discuss his leadership through war, the challenges of the financial markets, how to keep teams motivated, and guidance to other organisations preparing for uncertainty.

What Does ‘Leading Through Uncertainty’ Mean To You and Your Industry?

It’s a good question – I actually don’t think there is a difference between leading through uncertainty and leading through certainty. If you are a capable and experienced leader during uncertain times, you will also be effective during almost any other period, because the environment is never fully certain and there are constant changes to contend with. 

However, if the organisation is successful because of you in certain times, that's exactly the kind of attitude, abilities, and work which is also necessary in times of uncertainty.

What Are The Main Challenges And Disruptions Currently Facing The Financial Industry?

Speaking from the perspective of the Ukrainian market, we have quite a rare combination of challenges at the moment. The main is obviously the impact of the war which has both a physical impact - because there is a very real risk of losing people or assets being destroyed - and economic, as it is in a completely different shape compared with, for example, other European countries as it is focused on military production and the recovery of those losses suffered.

Therefore, the financial industry has needed to adapt to all of this.

We need to not only remain as stable as possible and ready for the future, but as a state-owned bank, we operate to different targets compared with other institutions, and are proudly committed to developing and helping our clients long after the war has ended.

Elsewhere, we see the world is changing – I believe as a result of certain geopolitics, the world will never be the same again. Europe is changing dramatically and I believe there is a great opportunity for the continent to become an independent power both in terms of military - which can be with help of Ukraine - but also economically, which is shaping the overall market we are connected to. 

How Has Your Leadership Expectations Changed in Response to Market Challenges And The War?

The call for both stability and change is all the greater. If you want to be stable in a changing environment, there needs to be continual change in yourself, your processes and your people. Like any living organism, if it stayed in the same condition in the winter as in the summer, it would cease to exist.

Having the internal flexibility in our organisation and leadership team allows us the agility to make considered decisions quickly according to the market.

Can You Give A Specific Example Of How You Or Your Company Has Successfully Navigated Uncertainty?

If you look to our financial results in the year under our current leadership team, they really speak for themselves and demonstrate we are very much moving in the right direction. Our profitability has grown, due in part to heavily decreasing the non-performing loans ratio, and our forecast for the next year is similarly positive.

This has been achieved by a couple of key elements. First, although Ukreximbank is a state-owned bank and has therefore its operational specifics, we have been able to simplify operations and further streamline our processes.

Secondly, over the last year, we have seen a seismic change in the motivation of our people and their mindset. Instead of sitting and waiting for the war to end, action has been taken to further engage our people. 

Which Leadership Traits or Behaviours Are Proving Most Valuable Right Now?

Leaders should listen more than answer, and this should extend to people, the market, and your stakeholders.

As leaders, we don’t wait for our own creativity. We empower our teams to be creative and encourage them to share their ideas, and ask them ‘how would you do it’? or ‘how could this be improved’?

It is then highly motivating to the wider business if teams feel they are trusted, that their input is valued and can then see their creative ideas become a reality.

Looking to the Next 12-18 Months, What Do You Think Will Define Successful Leadership Within The Financial Industry? 

To be successful, your company’s ship needs a solid hull. Understand and define the strengths and direction of the organisation as well as the market.

We are preparing our strategy for the next few years, and determining our key areas of focus – the water underneath the ship. Then, the motivation, creativity and expertise of the business becomes the wind in the ship’s sails.

What Advice Would You Give To Organisations Preparing For Continued Uncertainty?

Don't be scared or afraid to make decisions. If you believe in yourself, and that you are able to make the right decisions, you will do it.

Introduced by Odgers | Success Story 

Odgers partnered with Ukreximbank in the search for a world-class Member of the Management Board, with Pavel Haskovec taking up his position in July 2024.

To discover more about Pavel’s career background, why the role is the perfect fit, and his future ambitions, read his unique success story below. 

Introduced by Odgers | Pavel Haskovec Success Story

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