Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.

 

In this episode, Justin interviews Sadig Hajiyev, SOCAR Türkiye, Risk & Compliance Group Director, about SOCAR Turkiye and winning the RIMS ERM Global Award of Distinction. Sadig speaks of their ERM transformation that shifted SOCAR Türkiye from a compliance-oriented approach to an integrated, strategy-driven system, and a pivotal change. Sadig explains how they keep the ERM cohesive for business leaders, enabling decision-making. Sadig comments on external shocks that pressure-tested the program, showing the organization's true resilience and how it adapted its ERM approach. He speaks of one innovation with the biggest measurable impact. Justin and Sadig discuss SOCAR Türkiye's maturity jumping from a level-3 "repeatable" program to a level-5 "leading practice" in just a few years, supported by both the RIMS RMM and internal surveys, and how they are sustaining that momentum, having reached the top tier.

Listen for words of wisdom and encouragement for risk practitioners.

 

Key Takeaways:

[:01] About RIMS and RIMScast.

[:17] About this episode of RIMScast. Our guest today is Sadig Hajiyev. He is the Risk & Compliance Group Director for SOCAR Türkiye, and he was one of two recipients of the RIMS Global ERM Award of Distinction.

[:47] We will talk about the unique characteristics of his ERM Program and his unique risk philosophies. But first…

[:55] The next RIMS-CRMP-FED Exam Prep with AFERM will be held on December 3rd and 4th. The next RIMS-CRMP Exam Prep with PARIMA will be held on December 4th and 5th. These are virtual courses.

[1:12 ] Links to these courses can be found through the Certifications page of RIMS.org and through this episode's show notes.

[1:19 ] RIMS Virtual Workshops! "Managing Data for ERM" will be led again by Pat Saporito. That session will start on December 11th. Registration closes on December 10th. RIMS members always enjoy deep discounts on the virtual workshops.

[1:38 ] The full schedule of virtual workshops can be found on the RIMS.org/education and RIMS.org/education/online-learning pages. A link is also in this episode's notes.

[1:50 ] The RIMS CRO Certificate Program in Advanced Enterprise Risk Management is hosted by the famous James Lam. This is a live, virtual program that helps elevate your expertise and career in ERM.

[2:02 ] You can enroll now for the next cohort, which will be held over 12 weeks from January through March of 2026. Registration closes on January 5th. Or Spring ahead, and register for the cohort that will be held from April through June of 2026. Registration closes on April 6th.

[2:22 ] Links to registration and enrollment are in this episode's show notes.

[2:27 ] This episode was recorded at the RIMS ERM Conference 2025. We've covered a lot of ERM ground in the last few episodes, and for those who want to catch up, I've included a link to the RIMS ERM Special Digital Edition of Risk Management magazine in this episode's notes.

[2:50 ] RIMScast ERM coverage is linked as well. Enhance your ERM knowledge with RIMS.

[2:56 ] On with the show! This special episode was recorded live from Seattle at the RIMS ERM Conference 2025.

[3:05 ] It was one of the best-attended ERM Conferences in RIMS history, with hundreds of ERM practitioners and students from around the world connecting, learning, and celebrating.

[3:17 ] In RIMS tradition, we awarded the RIMS Global ERM Awards of Distinction. This year, there were two winners, one of which was SOCAR Türkiye, a pioneering energy company based in Turkey. The company's ERM program wowed our judges.

[3:34 ] Accepting the award is Sadig Hajiyev. He is the Risk & Compliance Group Director. As you will hear, he took the ERM Program to the next level. Since we were in person, it was the perfect time to sit down and speak with him after receiving his award.

[3:49 ] We're going to learn all about the program and Sadig's unique risk philosophies. Let's get to it!

[3:53 ] Interview! Sadig Hajiyev, welcome to RIMScast!

[4:18 ] Sadig says winning the award is a great feeling! Knowing someone here understands the value of the ERM Program and appreciates it is great! He shared photos and his reflections with his organization and got many congratulations, even though it was almost midnight in Turkey!

[5:09 ] Saig explains that SOCAR is a global company, based in Azerbaijan, with more than 100K people working in Turkey. They have refineries and petrochemical facilities working together. They are also in the energy trading business. They have terminals.

[5:34 ] They have multiple sectors, including fiber optic cables. They are doing so much in Turkey. SOCAR Türkiye is the biggest single-point investment in the history of Turkey, worth around $20 billion U.S.

[6:01 ] Sadig's department is 15 people, including compliance professionals. They have a resource pool of experts and allocate teams as needed.

[6:16 ] In 2022, SOCAR Türkiye shifted from a compliance-oriented approach to an integrated, strategy-driven system.

[6:29 ] SOCAR Türkiye does international business. It is highly dependent on international trade regulations, especially trade sanction regulations. Being compliant is not sufficient for SOCAR Türkiye. Sadig says sanction regulations are very dynamic, and you should be adaptive to them.

[6:57 ] Sadig says adaptation should be risk-based. At that time, SOCAR Türkiye started to implement risk-based compliance studies and approaches to make healthier decisions. They understood that it was the right decision.

[7:21 ] SOCAR Türkiye has a modular ERM framework that spans Scenario Analysis, Risk and Control Self-Assessments (RCSAs), Regulatory Attestation Cycles, the ISO 22301, and the Resilience Maturity Model.

[7:42 ] Justin asks how Sadig keeps them cohesive and digestible so that his leaders in SOCAR know that ERM is enabling decision-making. Sadig says it's not easy. They all met the needs that came up.

[8:14 ] The risk leader needs to understand the context of the company. Being very close to the first line, Sadig does not believe there is value in going to the C-Suite and asking what they expect of risk management. They have no idea.

[8:33 ] Sadig says it's more important to have a smooth discussion with them. At that point, the skill of the risk manager comes in to understand the context there and find out what would work best for this need. By that, you are supporting the company's decision-making.

[9:05 ] Sadig is a boxer. He keeps telling his team that risk management shouldn't be very friendly. Conversations shouldn't be easy or enjoyable. Discussions should be disruptive. Sadig risk is the department asking, if zombies are coming and invading our vault, what will happen?

[9:47 ] Risk leaders are the ones at the table to trigger those discussions and have the tough conversations. At that time, a leader's personality and personal brand are important. Managers should understand you are not doing it just to disrupt.

[10:08 ] You are doing it for the company's sake, to make the decision-makers consider all the aspects, risks, threats, and opportunities.

[10:43 ] SOCAR Türkiye faced significant external shocks in the last couple of years: security incidents, sanctions, and energy price volatility that pressure tested the ERM Program, but the company demonstrated resilience.

[11:11 ] Each of these incidents had its own dynamics that made the ERM Program learn or find a way to adapt.

[11:29 ] Turkey is a country with a very diverse range of uncertainties: political, economic, and geographical. The oil and gas sector is under pressure from international regulations, the climate, and more. There are so many issues going around.

[11:51 ] Facing real-time instances can be disruptive and impactful on daily business. The most important thing is the ability to adapt. It's the top management's job to adapt. Risk management is about the future. If something happens, risk management is there to support.

[12:23 ] Quick Break! RISKWORLD 2026 will be held from May 3rd through the 6th in Philadelphia, Pennsylvania. RISKWORLD attracts more than 10,000 risk professionals from across the globe. It's time to Connect, Cultivate, and Collaborate wth them. Booth sales are open now!

[12:45 ] Registration is open for RIMS members now, as well. General registration and speaker registration will open on December 3rd.

[12:53 ] Links are in this episode's show notes, and this year, when you purchase one Full-Conference Pass by December 2nd, you can add a second Full-Conference Pass at 50% off, through December 31st.

[13:07 ] When an eligible member selects a Full-Conference Pass while registering online, a Promo Code will be generated on the Review step of the registration form.

[13:05 ] This code will also be included in the Confirmation Email. It may be shared with a second eligible member from the same company or same email domain, and receive that 50% discount. Bring a colleague for 50% off. This is available to organizational and indiv