The risk management policies we adopt are in line with the international best practices. Our methods and infrastructure comply with the guidelines of international organisations:
- European Central Bank and Single Supervisory Mechanism (SSM)
- European Banking Authority
- Basel Committee
We upgrade our policies and infrastructure using suitable resources.
Clear risk assumption tolerance levels
We use qualitative and quantitative indicators and parameters to determine the maximum level of risks the Eurobank Group may assume:
- Maximum risk tolerance – the maximum risk level the Eurobank Group may assume based on supervisory and operational limitations (capital adequacy, liquidity, etc.).
- Risk appetite – the maximum risk level the Eurobank Group is willing to assume to achieve its strategic and business aims.
The Board Risk Committee and the Eurobank Board of Directors assess and approve the risk limits, so they may comply with the Eurobank Group strategy.
The risk tolerance limits are recorded in the Eurobank Risk Appetite Framework. This internal document forms the foundation for the risk policies and limits for any of our business operations and the Eurobank Group in general. It ensures that the Eurobank Group:
- Complies with the supervisory requirements.
- Has strong capital adequacy.
- Operates without any problems to further improve its profitability.
We forward the Eurobank Risk Appetite Framework to all our people. We use it to shape the Eurobank Group risk management culture.
Distinct trigger levels
We set distinct trigger levels at every risk tolerance limit. We have clear escalation procedures in place. This permits us to make the right decisions and act accordingly each time.
If the risk tolerance levels are breached, the competent units must notify the Board Risk Committee.
Regular risk monitoring
The Risk Management General Division and its sectors regularly monitor the types of risks the Eurobank Group may face:
- Operational risk – Operational Risk Management Sector.
- Market risk – Market and Counterparty Risk Sector.
- Liquidity risk – Capital Adequacy and Supervisory Framework Sector.
- Credit risk – Credit Sector, International Credit Sector, Credit Control Sector.
The Eurobank Group Risk Management General Division operates independently from the business units. The Group Chief Risk Officer (GCRO) reports directly to the Board Risk Committee and the CEO.
The GCRO determines, oversees and coordinates the development and implementation of suitable credit, market and liquidity risk policies. He/She acts as the CEO’s chief advisor for risk management issues.