Risk Management

The Group’s risk management function works with major risk types, namely credit, market, liquidity and operational risks. Market risks include interest rate risk, equity risk and currency risk. The Group’s risk management policies are designed to identify risk-bearing operations and assign key functions within the Group’s risk management system.

In 2011, the Group launched a project to implement an integrated risk management system comprising the following key components:

  • Managing the Group’s aggregated risks using the economic capital concept and scenario planning, including stress scenarios;
  • Defining risk appetite through a set of parameters for the level of risk the Group is capable and/or willing to accept to provide a target return to shareholders in line with strategic plans, as well as maintaining Group risk at the level approved;
  • Developing and employing risk models compliant with Basel Committee requirements and using departments independent from the developers to validate these models;
  • A risk identification system to ensure timely identification and proper measurement of all Group risks.

The Group plans to fully implement this system by 2014.


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