Erste Bank JPMorgan Merrill Lynch International

Risk Management Organization
The Group’s overall approach is for local units to be responsible for managing their respective
risk, with individual companies in the Group being given very strict limits in the areas of investment
and capital assets as well as in reinsurance for natural catastrophes. This approach also ensures that
relevant legal requirements in the local jurisdictions in which the individual Group companies operate
are adhered to.
The Vienna Insurance Group’s risk management department is an independent organizational
unit whose responsibilities and roles are defined in detail.
The following chart sets forth the responsibilities of individual areas and departments involved in
risk monitoring and management within Wiener Städtische AG and the responsibilities of Wiener
Städtische AG as the Group’s parent company.
Risk Committee
The cross-class risk committee is formed by the actuarial, business organization, reinsurance,
internal auditing and corporate risk controlling departments. The risk committee is responsible for the
optimization and ongoing development of an Enterprise Risk Management (ERM) system. ERM is a
framework for company-wide risk management that uses key principles and concepts, uniform
terminology and clear instructions and support.
Investment Management
Investment Management implements the guidelines established by Wiener Städtische AG’s
managing board in the areas of market risk and credit risk.
The management of securities investment and investment and risk policy is handled by two
committees, the “Strategic Investment and Risk Committee” and the “Tactical Investment Committee”.
The members of these committees are sub-divided into a decision-making group and an advisory
group.
Strategic Investment and Risk Committee (Securities). This committee is responsible for the
approval of, or changes to, the permissible investment categories of the Group (asset classes),
as well as for the annual determination of strategic asset allocation and risk strategy in the
securities area. The strategic asset allocation and risk strategy in the securities area is reviewed
at least on a monthly basis. The decision-making group includes the management board
members responsible for financial matters of the Austrian, Czech and Slovakian insurance
companies, as well as the Chief Investment Officer of Wiener Städtische AG. The advisory
group includes the head of the securities department, his deputy and the risk manager.
Tactical Investment Committee. This committee meets on a weekly basis and is responsible
for managing securities investments within the strategic asset allocation limits and for making
decisions as to which entities are responsible for managing investments (which could be either
the Group, Ringturm KAG or a third party). The decision-making group includes the responsible
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