Capital and risk management

Part of the banking business is to accept risks. The LLB Group actively manages risks according to strategic targets and applies a conservative financing structure.

In 2011, we revised the risk policy guidelines and adapted them to the changed market conditions, the new regulatory requirements (Basel III) as well as growth in our corporate structure. We updated and established detailed qualitative and quantitative standards for risk responsibility, risk management and risk control. Furthermore, the position of a Chief Financial Officer (CFO) was created at the level of the Group Executive Board and the Board of Management. This move highlights the importance of financial management and risk management in our company.

At the same time, we defined adequate organizational and methodical parameters for specifying and managing risks. With the introduction of the «Internal Capital Adequacy Assessment Process» (ICAAP) we ensure that there is always adequate capital to cover all essential risks. In addition, risk strategy and risk propensity are defined, all essential risks are evaluated and the processes and control mechanisms are specified.

The ICAAP framework

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