Annual Report of Euram Bank Vienna 2018

A N N U A L
R E P O R T
2018
Risk management and risk controlling process
Euram Bank has put in place adequate risk management and risk controlling processes that ensure
the identification, assessment, control as well as monitoring and communication of essential risks
and of the associated risk concentrations. These processes are integrated in a joint yield management
and risk control system (internal capital adequacy assessment process, ICAAP). Suitable measures
ensure that the risks and associated risk concentrations are effectively limited and monitored
taking account of the risk-bearing capacity and of the risk tolerances. The risk management and risk
controlling processes make sure that essential risks – even from outsourced activities and processes
– can be identified early on, measured in full and presented adequately. Reports on the risk situation
are presented to the Managing Board at suitable intervals. Risk reporting must be effected in a comprehensible,
meaningful way. Apart from the relevant presentation, it will also include an assessment
of the risk situation. If necessary, risk reporting will also include proposed action, e.g. with a view to
reducing risk. Moreover, risk concentrations and their potential consequences are dealt with separately.
As a complement to regular reporting, annual stress tests are carried out. The results of the
stress tests and the potential effects on the risk situation and the risk covering potential, as well as
the essential assumptions underlying the stress tests are presented in a separate report. Information
that is essential with a view to risk will be passed on to the Managing Board, the respective officers
and the Internal Audit function without delay, for suitable measures or audits to be initiated at an
early stage. The Managing Board will inform the Supervisory Board in writing about the risk situation
at quarterly intervals. Information that is essential for the Supervisory Board under a risk aspect
will be passed on by the Managing Board without delay. The risk management and risk controlling
processes are promptly adjusted to changing conditions.
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