Risks and principles

General

  • Risks are only taken within risk tolerance limits after careful consideration.
  • Risks are managed systematically.
  • Risks are only taken if they can be borne, offset by reasonable returns, and the capabilities for managing the risks have been confirmed.
  • Risks are effectively contained, controlled and independently managed at all levels.

Credit risk

  • Loans are only extended to clients who meet minimum creditworthiness and solvency criteria.
  • Concentration risks are avoided.
  • The credit policy is prudent.
  • The focus is on financing owner-occupied residential property.
  • Corporate clients are evaluated based on the following aspects: regional ties, sufficient diversification, risk/return ratio and minimal exposure to high-risk industries.

Market risk

  • Interest rate risks are managed using proven tools and clearly defined guidelines and limits.
  • Raiffeisen Switzerland trains and advises the Raiffeisen banks.
  • Foreign currency assets are generally refinanced in the same currency (matched book approach).
  • Trading risks are strategically clearly limited.

Liquidity risk

  • Liquidity sources are properly diversified.
  • Liquidity trends in the Raiffeisen Group are assessed at operational, tactical and strategic levels.
  • The Raiffeisen banks and Notenstein La Roche Private Bank Ltd manage liquidity risks at their own discretion based on instructions provided by Raiffeisen Switzerland.
  • Access to money and capital markets is provided centrally through Raiffeisen Switzerland.

Operational risk

  • Risks are evaluated through regular top-down and bottom-up risk assessments.
  • Risks are monitored using key risk indicators and an early warning system.
  • The appropriateness and effectiveness of key controls in all risk-related processes is periodically reviewed and confirmed at the Group level.
  • Internal and external events are analysed on an ongoing basis.

Legal and compliance risk

  • Statutory, regulatory and professional provisions are promptly translated into internal rules and workflows.
  • Contracts are followed and enforced.