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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 in the fields of both risk management and risk
controlling in order to guarantee the bank’s security and profitability
in the interests of our customers and owners. Our experiences
during 2013 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 under-
standing 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,
while the supervisory board reviews our risk policies at regular
intervals.
• The management of 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 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 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. 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 manage-
ment board are clearly described on the intranet, in the credit man-
ual and in the product manuals. Furthermore, all employees in-
volved in the execution of transactions are instructed in these tasks
and process, which are also available online. This ensures in every
individual case that any risk taken on 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
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 2013 annual financial statements.
Management report