Because of the geographical orientation of EuramBank, the operational risk represents the most significant risk. Money laundering risk is limited by the use of an analytical anti-money laundering, compliance and risk solution. This AML solution allows to detect unusual, unexpected and suspicious customer features and transactions, and automatically alerts the Compliance Officer if there are indicative grounds for suspicion. In addition to identifying grounds for suspicion, this AML solution supports the investigation, processing and documentation of identified cases. Each operation is also comprehensively documented in auditable form, and can be reviewed and tracked by reports at any time. In operational risk management, the guidelines for identifying, assessing, and monitoring are updated annually; day-to-day risk management has been firmly established in the business and administration departments. This business partnership model creates close control, and leads to increased internal awareness of operational risks. The base indicator approach according to CRR, Part 3, Articles 312 to 324 is applied for calculating operational risk. EuramBank does not trade securities for its own account. The bank mainly holds debt instruments issued by public authorities, and debentures and other fixed-income securities with top ratings. EuramBank allocates very low limits for overnight positions, so the foreign exchange exposure in EuramBank’s banking book is very limited. Foreign currency loans are refinanced exclusively in the same currency as the loan. Liquidity risk is limited by matching maturities to a great extent. Client deposits are predominantly invested according to maturities – and demand deposits for up to one week – with a selected group of third-party banks. Interest-rate risks are controlled on the basis of the recommendations of the Asset/Liability Management Committee (ALCO), which sets rules for active and passive management. The results are discussed in biweekly meetings, and the assumptions made are reviewed.
In order to limit legal risk, EuramBank maintains a close cooperation with a prestigious law firm, and uses the expertise of this law firm in connection with introducing new products, transactions and lines of business. 24 25 Vienna, on 7 September 2015 The Management Board Manfred Huber Johannes Langer Josef Leckel