Additional information on risk management

Credit risk

• Capturing credit risk signals, performing thematic and sectoral deep dives, following-up on new and upcoming prudential (capital) credit risk regulation, and identifying emerging credit risks that could lead to impairment;
• Credit risk measurement in which the risk class is a key metric;
• Setting the credit risk appetite which is made tangible by assigning limits and early warning levels;
• Analysing the loan portfolio;
• Stress testing.

Market risk in non-trading activities (ALM risk)

• Proactively identifying ALM risks, performing deep dives and monitoring regulatory developments;
• Measuring ALM risks via Basis-Point-Value (BPV) for interest rate risk, gap analysis for interest rate risk related to repricing mismatches between assets and liabilities and inflation risk, economic sensitivities for currency risk, equity price risk and real estate price risk;
• Setting the risk appetite for non-trading market risk by assigning limits and early warning levels;
• Regulatory and internal reporting on ALM activities;
• Stress testing.

• Proactively identifying liquidity risks, performing deep dives and monitoring regulatory developments;
• Measuring liquidity risks using the Liquidity Coverage Ratio (LCR), the Net Stable Funding Ratio (NSFR), the funding mix, and the concentration and composition of the liquid asset buffer;
• Setting the risk appetite for liquidity risk by assigning limits and early warning levels;
• Continuously monitoring of the funding liquidity and funding needs;
• Stress testing.

• Proactively identifying trading risks, performing deep dives and monitoring regulatory developments;
• Measuring trading risk via nominal positions, Basis-Point-Value (BPV), scenario analyses, and the Historical Value-at-Risk (HVaR) method;
• Setting the risk appetite for trading market risk by assigning limits and early warning levels;
• Regulatory and internal reporting on trading activities;
• Stress testing.

Technical insurance risk

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• Proactively identifying technical insurance risks, performing deep dives and monitoring regulatory developments, and reliably classifying all insurance risks that may be triggered by (re)insurance contracts;
• Measuring technical insurance risks by means of the Solvency Capital Requirement (SCR), the Best-Estimate valuation of insurance liabilities, and the economic profitability of insurance portfolios;
• Setting the risk appetite for technical insurance risk by assigning limits and early warning levels;
• Regulator reporting via the Insurance Integrated Risk Report;
• Stress testing.

• Proactively identifying operational risks, following up on legislation, using the output of the New and Active Products Process (NAPP), performing risk scans, analysing key risk indicators and performing independent control monitoring activities and root cause analysis of operational incidents, near misses and losses;
• Measuring operational risks and the maturity of the internal control environment;
• Setting the risk appetite for operational risk by assigning limits and early warning levels;
• Regulatory and internal reporting on operational risks;
• Stress testing.

• Anti-Money Laundering and countering the financing of terrorism;
• Tax fraud prevention;
• Investor protection and protection of the policyholder;
• Data protection and AI, including AI Act compliance;
• Business ethics;
• Consumer protection;
• Governance
• Monitoring governance aspects of CRD IV and V, Solvency II and/or local legislation;
• Supervising sustainable finance and sustainability.

• Remaining focused on sustainable and profitable growth, fulfilling our role in society and the local economy to the benefit of all stakeholders;
• Promoting a strong corporate culture that encourages responsible behaviour throughout the organisation;
• Putting clients’ interests at the heart of what we do and fostering trust by treating the client fairly and honestly.