The Group KD Group and KD Group dd
The Group KD Group and KD Group dd
The Group KD Group and KD Group dd
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<strong>The</strong> <strong>Group</strong> <strong>KD</strong> <strong>Group</strong> Annual Report 2009<br />
Notes to Consolidated Financial Statements as at <strong>and</strong> for the year ended 31 December 2009<br />
31.12.2008<br />
(in EUR) EUR Other Total<br />
Assets<br />
Financial assets at fair value through profit or loss 31,509,851 4,000,829 35,510,680<br />
- Equity securities 11,847,866 4,000,829 15,848,695<br />
- Debt securities 19,661,985 - 19,661,985<br />
Available for sale 183,734,682 3,740,183 187,474,865<br />
- Equity securities 64,006,977 2,831,677 66,838,654<br />
- Debt securities 119,727,705 908,506 120,636,211<br />
Held to maturity 6,996,697 848,012 7,844,709<br />
- Debt securities 6,996,697 848,012 7,844,709<br />
Investment property 28,707,587 - 28,707,587<br />
Loans <strong>and</strong> receivables 166,429,798 14,992,009 181,421,807<br />
Investments in loans <strong>and</strong> other financial receivables 86,251,324 11,534,356 97,785,680<br />
Insurance receivables <strong>and</strong> other receivables 66,661,969 3,186,158 69,848,127<br />
Accruals <strong>and</strong> DAC 13,516,505 271,495 13,788,000<br />
Reinsurance assets 17,360,568 2,135 17,362,703<br />
Cash <strong>and</strong> cash equivalents 26,061,591 5,243,601 31,305,192<br />
Total assets 460,800,774 28,826,769 489,627,543<br />
Liabilities<br />
Debt securities (issued) 75,449,991 - 75,449,991<br />
Borrowings 106,027,899 80,013 106,107,912<br />
Derivative financial instruments 350,696 - 350,696<br />
Insurance contracts 207,727,450 3,017,771 210,745,221<br />
Insurance contracts with DPF 66,899,135 36,593 66,935,728<br />
Investment contracts with DPF 16,330,164 - 16,330,164<br />
Total liabilities 472,785,335 3,134,377 475,919,712<br />
5.3 Operational risk<br />
Operational risks are risks related to errors in the functioning of business processes, information technology, organisation <strong>and</strong><br />
similar areas.<br />
<strong>The</strong> operational risks of the <strong>Group</strong> are managed in the subsidiaries by monitoring the weaknesses <strong>and</strong> opportunities of their<br />
businesses <strong>and</strong> by controlling the business processes. <strong>The</strong> operational risk management is based on the <strong>Group</strong>’s strategic<br />
<strong>and</strong> companies’ operational objectives.<br />
<strong>The</strong> <strong>Group</strong> manages operational risks by introducing ISO st<strong>and</strong>ards at the level of the <strong>Group</strong> <strong>and</strong> at its individual members, by<br />
which the <strong>Group</strong> wants to st<strong>and</strong>ardise the business processes. <strong>The</strong> <strong>Group</strong> uses st<strong>and</strong>ardised <strong>and</strong> uniform software in the<br />
area of accounting <strong>and</strong> investments. Operational risks are reduced also with uniform system of annual planning <strong>and</strong> interim<br />
<strong>and</strong> annual reporting.<br />
5.4 General business risk<br />
General business risks are related to the <strong>Group</strong>’s operations in the environment, such as the economic environment,<br />
legislation <strong>and</strong> similar, on which the <strong>Group</strong> has no direct impact.<br />
Such risks are quite difficult to measure or model. In order to manage such risks, the <strong>Group</strong> regularly monitors legislation<br />
through its technical services, as well as developments on the capital market <strong>and</strong> macroeconomic parameters of the markets<br />
in which it is present.<br />
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