Risk management
and risk control
Taking risks in a considered manner is a fundamental function of all banking operations. Swedbank’s risk taking is conducted within the framework of the policies and instructions adopted by the Board of Directors and the President. The operational responsibility for risk control lies with the Group Risk Control (KR) staff, which is separate, in terms of responsibility, from the commercial operations.
KR is responsible for working, in close cooperation with management and business units, to ensure a healthy risk culture within the Group, such that:
- risks are identified, quantified, followed up, reported and, when necessary, actioned
- a healthy balance can be maintained between risk-taking and anticipated results
- losses resulting from unconscious risk-taking are minimised
- the Group’s risks and venture capital requirement is considered as a basis for strategic deliberations and commercial decisions, when relevant.
The Group’s risks are compiled and evaluated by KR, which reports regularly to the President and the Board. The risks are also followed up in relation to limits approved by the Board and the President.
The Group’s risks can be divided into the following risk types: credit risks, financial risks (interest risks, currency risks, share price risks, liquidity risks), operational risks and other risks. Swedbank has a low risk profile with a well-diversified credit portfolio and limited risks in the financial markets. The retail bank nature of Swedbank means that credit risks are predominant.
|
|
| |
|
|
|
|
