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Management report
Risk report
Modern risk management
Raiffeisen-Landesbank Tirol AG attaches great importance to
active risk management, which safeguards our long-term success.
In keeping with statutory requirements, Raiffeisen-Landesbank
Tirol AG has set itself the goal of applying effective methods and
suitable systems by means of recording, assessing, limiting,
steering, monitoring and reporting the risks in order to guarantee
the bank’s security and profitability in the interests of our customers
and owners. Our experiences during 2014 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
understanding of the bank’s global objectives with respect to risk
management.
• 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
company’s continuing existence.
• Careful analysis of the specific risks is essential before
introducing new lines of business or products (the product
launch process).
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
monitoring risk management at Raiffeisen-Landesbank Tirol AG.
The risk committee which is required by law and convened by
the supervisory board checks and monitors the risk strategy at
regular – at least annual – intervals.
• The management of all types of risk, especially credit,
market, liquidity, investment, operational and other risks, is a
coordinated process involving all relevant levels within the bank.
• As the central body reporting to the management board, the risk
committee issues recommendations concerning risk strategy,
including specific strategies in relation to the individual risk
categories and the limitation of risk capital in line with our risk-
bearing ability and risk capital allocation.
Risk management organisation
The risk management system is organised with a view to avoiding
conflicts of interest at both the personal and organisational levels
(separation of trading and back-office supervisory functions). The
tasks and organisational processes involved in the measurement,
monitoring and reporting of risks are the responsibility of the risk
management department and are laid down on the intranet and in
the appropriate 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.
Borrowers’ risk situations are continuously and two-dimensionally
managed – on the one hand through assessing their economic
situation via our in-house rating systems, and on the other
hand through the evaluation of risk-reducing collateral. In the
corresponding calculations, we take the varying risk levels inherent
in different credit activities duly into account.
The sales units are supported by the risk management department
in the management process through the measurement and
monitoring of credit risk and impending macroeconomic risks,
and by the credit management department in the operational
management of normal and problematic exposures. In the
reporting system, various reference date and forecast analyses
form an integral part of the risk profile and assist in guaranteeing
an active across-the-board risk management process.
The various credit-risk-related tasks and organisational processes
as well as the credit risk strategy laid down annually by the
management board are clearly described on the intranet, in
the credit manual and in the product manuals. Furthermore, all
employees involved in the execution of transactions are instructed
in these tasks and processes, which are also available online.
This ensures in every individual case that any risk taken is in
compliance with our risk policies and risk strategy. In addition, in
keeping with principles of commercial prudence, ample provision
is made for all existing risks.
Events after the balance sheet date
The EUR–CHF exchange rate fell almost to parity level at one
bound after the utterly surprising decision by the Swiss National
Bank (SNB) on 15.01.2015 to stop supporting the minimum rate.
This led to a modest increase in the liability in CHF for RLB Tirol
AG.
The increase in the liability and/or the conversion of customers’
positions on grounds of stop-loss orders are having no noteworthy
impact on the income and/or risk situation at RLB Tirol AG. The
private customers affected by stop-loss orders were informed in
writing about the possibility of reconversions and, in connection
with this, invited to attend an advisory talk.
To date, no business occurrences or other events have occurred
which would be of special public interest or which would have a
significant impact on the 2014 annual financial statements.
