Risk Management
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- Pages
- 72
- Published in
- France
Table of Contents
- INTRODUCTION 7
- The Council of Europe Development Bank the CEB or the Bank 7
- Being a multilateral development bank the CEB does not fall within 7
- However the CEB applies international best banking practices that are 7
- Committee on Banking Supervision recommendations and its status 7
- Executive Summary 7
- Risk highlights 8
- RISK MANAGEMENT FRAMEWORK 10
- The primary purpose of risk management is to ensure the Banks long- 10
- Risk Management objective and principles 10
- Risk culture and Appetite 10
- Risk policies and reports 11
- Risk processes 12
- Risk organisation and governance 14
- Risk Appetite Framework 16
- CAPITAL MANAGEMENT AND ADEQUACY 17
- Although not subject to international banking supervision and 17
- Capital Management and Planning 17
- Capital Adequacy Ratio 18
- Gearing Ratio 19
- Leverage Ratio 20
- CREDIT RISK 21
- Credit risk is defined as the potential loss arising from a bank borrower 21
- Credit Risk identification and assessment 21
- Internal ratings 21
- Credit Risk Mitigation 24
- Credit Risk Exposure overview 24
- Loan portfolio 27
- Stock of projects 31
- Social Dividend Account guarantee window 33
- Finance portfolio 34
- Large exposures 39
- Provisioning expected credit losses and credit impairment 40
- RISK-WEIGHTED ASSETS 44
- Risk-Weighted Assets RWA are a banks assets and off-balance-sheet 44
- Overall RWA Exposures 44
- Breakdown of RWA by type of counterparty and by product 45
- Breakdown of RWA by country and by product 46
- COUNTERPARTY CREDIT RISK 49
- Counterparty credit risk is the translation of the credit risk embedded 49
- Counterparty Credit Risk Mitigation 49
- Counterparty Credit Risk Assessment 50
- Credit Valuation Adjustment 50
- MARKET RISK 52
- Market risk is the risk of incurring losses due to adverse movements in 52
- Ratio of its risk appetite framework. 52
- Interest rate risk 52
- Foreign exchange risk 55
- LIQUIDITY RISK 56
- Liquidity risk is the risk of incurring losses resulting from the inability 56
- CEBs framework for liquidity risk management and measurement 56
- Survival horizon 57
- Regulatory Liquidity Ratios LCR and NSFR 57
- Liquidity ratios used by rating agencies 61
- Liquidity gaps 62
- OPERATIONAL RISK 63
- The CEB implemented an Operational Risk Management Policy to 63
- CLIMATE RISK 64
- The CEB recognises that climate risk is of significant importance. The 64
- CEB views climate-related risks as an interconnected set of risks and 64
- APPENDIX 66
- Glossary 66
- Abbreviations 67
- List of figures 68
