Risk Management

Dexia Kommunalbank Deutschland has an extensive risk management system (identifying, recording, measuring, analyzing and assessing risks and ensuring constant risk monitoring) that is constantly being improved. It provides decision-makers with the information they need to actively manage risks. All matters relating to the regulatory requirements (MaRisk, Basel II) are managed, organized and coordinated for all risk categories.

By centralizing its core risk management control functions, the Bank ensures that the Management Board, the Supervisory Board and its parent bank are kept abreast of DKD's risk position. The Internal Audit Department provides support for the review of the business processes, as well as the effectiveness and appropriateness of the risk management and control systems as defined by MaRisk. Process and risk audits are planned on the basis of a risk matrix. The value at risk (VaR) calculated serves as a basis for setting the audit intervals. The risk matrix is updated regularly. The auditors report their findings and recommendations directly to the full Management Board, the Audit Committee of the Supervisory Board and the full Supervisory Board.

The risks specific to the Pfandbrief business and its cover pool pursuant to § 27 German Pfandbrief Act (Pfandbriefgesetz, “PfandBG”) are presented separately. The Bank recognizes accruals on a monthly basis for both the cover pool and the bonds outstanding in order to quantify interest rate, counterparty and liquidity risks.

Risk Report