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Risk report
Modern risk management
Raiffeisen-Landesbank Tirol AG attaches great importance to ac-
tive risk management, which safeguards our long-term success.
In keeping with statutory requirements (BWG and Basel II), Raiffei-
sen-Landesbank Tirol AG has set itself the goal of applying mod-
ern methods and suitable systems in the fields of both risk man-
agement and risk controlling in order to guarantee the bank’s
security and profitability in the interests of our customers and own-
ers. Our experiences during 2012 have confirmed the effectiveness
of our risk policies, risk management and organisation.
Principles of risk policy
Our risk policy principles lay down the central rules of conduct for
dealing with risk. They lay the foundation for a unified understand-
ing of the bank’s global objectives with respect to risk manage-
ment.
• The management board and all our employees are committed
to the risk policy principles and comply with them in their day-to-
day decision-making.
• In the case of non-transparent risk positions or methodological
uncertainties, we apply the prudence concept.
• Our risk management is geared to the goal of ensuring the com-
pany’s continuing existence.
• Careful analysis of the specific risks is essential before introduc-
ing new lines of business or products (the product launch pro-
cess).
Our risk policy principles are laid down by the management board
and are regularly reviewed and adjusted as necessary.
Risk management principles
Our risk management is founded on the following principles:
• The management board takes overall responsibility for monitor-
ing risk management at Raiffeisen-Landesbank Tirol AG, while
the supervisory board reviews our risk policies at regular inter-
vals.
• The management of credit, market, liquidity, investment, opera-
tional and other risks is a coordinated process involving all rele-
vant levels within the bank.
• The risk committee issues recommendations concerning risk
strategy and the limitation of risk capital in line with our risk-bear-
ing ability and risk capital allocation.
Risk management organisation
The risk management system is organised with a view to avoiding
conflicts of interest at both personal and organisational level (sep-
aration of trading and back-office supervisory functions). The tasks
and organisational processes involved in the measurement, mon-
itoring and reporting of risks are the responsibility of the risk man-
agement department and are laid down on the intranet and in the
corresponding manuals.
Credit risk
The credit risk is evaluated for both counterparties (private and
commercial customers, banks and countries) and concentrations.
Granting credit and the judicious assumption of risk are among
Raiffeisen-Landesbank Tirol AG’s core lines of business. Borrow-
ers’ risk situations are continuously and two-dimensionally man-
aged, on the one hand, through assessing their economic situa-
tion via our in-house rating systems and, on the other, through the
Management report