- –Risks are only taken within risk tolerance limits following 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.
- –Loans are only extended to clients who meet minimum creditworthiness and solvency criteria.
- –Concentration risks are avoided relating to clients, industries or geographic regions.
- –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.
- –Risks in the trading and banking books are managed based on clearly defined guidelines.
- –Clear strategic lines are drawn using limits and proven tools.
- –Raiffeisen Switzerland trains and advises the Raiffeisen banks regarding their market risk in the banking book.
- –Foreign currency assets are generally refinanced in the same currency (matched book approach).
- –Refinancing sources are reasonably diversified.
- –Liquidity in the Raiffeisen Group is managed at operational/tactical and strategic levels.
- –The Raiffeisen banks 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.
- –Risks are evaluated through regular top-down and bottom-up risk assessments.
- –Risks are monitored using risk indicators and an early warning system.
- –The appropriateness and effectiveness of key controls in all risk-related processes is periodically reviewed and confirmed.
- –Internal and external events are analysed on an ongoing basis; the findings from these analyses are implemented in the operational business processes.
Legal and compliance risk
- –Internal policies and processes are promptly adapted to reflect changes in laws, regulations and professional rules and then implemented.
- –Contracts are followed and enforced.