Risk management process

The implementation of an efficient risk management process is essential to enable risks to be identified, assessed, controlled and monitored. The Group Board of Directors specifies the risk strategy, which provides the operative units with a framework for the treatment of risk exposure. Depending on the type of risk, not only the stipulation of upper limits for losses may be required but also a detailed set of regulations which stipulate which risks may be accepted under what conditions, and when measures to control risks are to be implemented.

The control loop of the LLB Group's risk management process is illustrated in the chart.

Risk management process

(XLS:)

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The Audit & Risk Committee is responsible for controlling strategic risks.

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk policy / Risk strategy Group Board of Directors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk identification

 
 

 

Risk assessment

 

 

Risk reporting

 

 

Risk management

 

 

Risk monitoring

 

 

 

 

 

 

 

 

 

 

 

 

 

Group Risk Management*

 

 

Group Risk Management*

 

 

Group Risk Management*

 

 

Group Executive Board
Group Risk Management

 

 

Group Risk Management*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Process monitoring Group Internal Audit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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