The Bank is exposed to various types of risk arising from external and internal factors induced by the characteristics of the markets where it operates. These include credit risk, market risk, liquidity risk and operational risk.
The objective of the Risk Management function - a key function to the development of the Bank's activities - is to identify, assess, monitor and report all the material risks to which the Bank is subject to, both internally and externally, so that such risks remain within limits that are consistent with the risk profile and risk tolerance level approved by the management body of each institution and therefore do not affect that institution's financial solvency.
The Risk Management function operates independently from the business areas, providing advice on risk management to the decision-takers of the Bank. The Bank has in place systems to identify, monitor and manage risks, as well as areas to support the business development.
As of 31 December 2014, the Bank's Core Tier I ended up at 9.44%, well above the regulatory levels. At the end of 2014 Risk Weighted Assets had decreased by 12.7%, to EUR 4,157 million.