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RISK MANAGEMENT
The risk tolerance defined by the Board sets a conservative strategy which
aims to maintain a moderate-low risk profile; focused on keeping the quan-
tity and quality of capital, with solvency levels clearly above the regulatory
minimums; allowing us to anticipate that none of the risks identified could
generate losses which could not be withstood within the normal operations
of the bank.
Structure and Organisation
From the perspective of the definition of risk tolerance, the monitoring of the
implementation of management policies and the monitoring of risk profiles,
Cecabank has established a supporting structure and a reporting system as
described in the following organisational chart:
The Board is the driving force in the corporate risk culture, which focuses
on guaranteeing efficient internal control systems and rigorous and
comprehensive risk management and measurement processes.
MAIN RISKS OF
CECABANK’S ACTIVITY
Potential risks arising as a
result of Cecabank’s activity
are classified as follows:
Credit
risk Market
risk
Balance sheet
structural risk
Liquidity
risk
Operational
risk
Compliance
risk
Reputational
risk
Risk
The risk management philosophy is based on rigorous criteria of prudence, in
a way that is consistent with the commercial strategy, ensuring the efficient
use of capital assigned to business units.
The results of
application of this
philosophy are seen in
a highly prudent risk
profile, in particular
with regard to high
levels of solvency
and a comfortable
liquidity position.
For more informationsee the
report: “Pillar IIIDisclosure
Report 2016”
Cecabank 2016 Annual Report Page. 88
06 FINANCIAL INFORMATION
6.1
6.