Annual Report of Euram Bank 2019


For this reason, the Risk Management function carries out a risk inventory process in the form of a

self-assessment with the individual corporate and administrative divisions each year. The loss

scenarios developed in the course of this process are summarized in the risk profile of Euram Bank,

based on which measures and priorities are defined to reduce risk. Euram Bank has implemented

a loss database, which is kept by Risk Management. All business and organizational divisions are

instructed to report any mistakes that have occurred (regardless of the amount of money involved) to

the Risk Management function, thus enabling their analysis in a first step and to derive arrangements

to prevent new mistakes from occurring in the next step.

Other risks

General business risk:

Basically, Euram Bank is in a position to achieve a positive result on the basis of the existing

business model. In the course of preparing the annual accounts, a risk strategy is defined for the

new fiscal year which also serves as a basis for the allocation of economic capital. Based on the

preliminary balance sheet figures of the annual accounts and on the risk strategy adopted by the

Joint Managing Board, a financial forecast will be prepared for the new fiscal year. A Profit Center

account is prepared monthly. The result is compared with the target values, which were calculated

according to the same criteria, on a monthly basis. Strategic risks, business and yield risks are

consolidated with the credit, market and interest rate risks and supplemented by operational risks.

The result will be discussed and analysed promptly by the joint Managing Board. This process

ensures that general business risks are identified immediately.


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