Annual Report of Euram Bank Vienna 2010/2011
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In addition, <strong>Euram</strong> <strong>Bank</strong> does not engage<br />
in proprietary trading. Securities held in<br />
the <strong>Bank</strong>’s current assets were exclusively<br />
held for resale to clients and not to take<br />
advantage <strong>of</strong> short-term price and interest<br />
fluctuations.<br />
The liquidity risk is limited by largely<br />
matching maturities. Customer deposits<br />
are mainly invested according to maturities,<br />
and demand deposits are invested up<br />
to a maximum <strong>of</strong> one week with a selected<br />
group <strong>of</strong> third banks. Interest rate risks are<br />
controlled upon advice from the Asset/Liability<br />
Management Committee (ALCO),<br />
which issues recommendations for the<br />
asset/liability management. The results are<br />
evaluated and discussed on a monthly<br />
basis. The recoverability <strong>of</strong> collaterals<br />
provided for collateralized loans is reviewed<br />
automatically on a daily basis.<br />
Due to <strong>Euram</strong> <strong>Bank</strong>’s geographical range,<br />
the operational risk is the most significant<br />
risk. The money laundering risk is limited<br />
by implementing an analytical anti-money<br />
laundering-, compliance- and risk solution.<br />
This AML solution allows us to identify<br />
unusual, unexpected and suspicious<br />
customer features and transactions, and<br />
the Compliance Officer is automatically<br />
warned in case <strong>of</strong> any significant suspicion.<br />
In addition to identifying suspicious<br />
situations, this AML solution supports the<br />
investigation, further processing and documentation<br />
<strong>of</strong> identified cases. Each step is<br />
completely documented in compliance with<br />
audit guidelines and can be reviewed and<br />
verified at any time by means <strong>of</strong> a report.<br />
To limit its legal risk, <strong>Euram</strong> <strong>Bank</strong> closely<br />
cooperates with a renowned law firm and<br />
uses this firm’s expertise in connection<br />
with the launch <strong>of</strong> new products, transactions<br />
and lines <strong>of</strong> business.<br />
In the process <strong>of</strong> operational risk management,<br />
identification, evaluation and monitoring<br />
guidelines are updated on an annual<br />
basis. Daily risk management was incorporated<br />
into business and administration areas.<br />
This business partnership model ensures<br />
close monitoring and guides the staff to a<br />
high awareness <strong>of</strong> operational risks.<br />
We apply the base indicator method pursuant<br />
to Section 22j <strong>of</strong> the <strong>Bank</strong>ing Act<br />
(BWG) in conjunction with Section 182 <strong>of</strong><br />
the Solvency Ordinance to calculate our<br />
operational risk.
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