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2018 Pillar 3 Disclosures
Risk Management
•
The management will be aligned with good banking practices and the business will be
conducted in a way that is ethical, fair and respectful of the legislation in force;
•
Capital planning shall be designed to cover the current capital needs and any arising with the
commissioning of the Strategic Plan, taking into account the minimum solvency levels defined
by the Board;
•
Liquidity management shall focus on guaranteeing that the bank maintains adequate resources
to comfortably meet its short- and long-term commitments, taking into account its ability to
call upon the markets; diversifying the sources through which it is financed; and maintaining
a high-quality unencumbered liquid-asset buffer that covers the position effect of stress-
generating events: and
•
The corporate governance and internal organisation, and risk admission, control and
management systems shall be robust, appropriate to the activities which the bank performs
and proportionate to the risks incurred.
Senior management is responsible for the effective implementation of these principles and
for maintaining the desired risk profile. It is also responsible for the development of the
Risk Tolerance Framework through the adoption of additional metrics and controls, thereby
guaranteeing effective implementation of the policies defined.
The Board receives regular information as to the maintenance of the risk profile, and reviews
the risk management policies implemented at the bank. In addition, it is the body responsible
for approving the result of the Internal capital adequacy assessment exercise which is
submitted each year to the Supervisor. In these activities, it has the support and guidance
of the Risk Committee. There is a monitoring structure which allows the Board and the Risk
Committee to identify potential deviations, so as thereby to adopt the necessary measures
and hence adjust the risk profile.
As mentioned at the beginning, this document was approved by the Board of Directors of
Cecabank, which performed its review with the assistance of the Risk Committee. As a result,
in accordance with the requirements of Article 435 (1)(e) of Regulation (EU) 575/2013, the
Board guarantees that, following the analysis performed, the bank classifies for the moderate-
low risk profile and, therefore, within the accepted tolerance levels, and the systems,
processes, policies and resources employed for risk management are appropriate. Similarly,
no adverse element that could modify this situation in the future is anticipated.
Annex I to this document includes detailed information as to the principles established by
the Board which define risk management at Cecabank, in addition to the specific policies and
objectives applied in the management of the relevant risks.
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