Risk inventory

The risk inventory provides a structured overview of all risks that could harm the Bank’s financial position, capital resources, financial performance, or liquidity situation. This overview also comprises risk concentrations within individual risk types and between risk types.

The risk profile established in this way forms the basis for the Risk Appetite Statement and for the measurement, monitoring, and management of risks at Rentenbank. The risk inventory also serves the purpose of enhancing the transparency of risks, which also supports the risk culture of Rentenbank. The risk profile comprises the following material risk types: credit default risks, market risks, liquidity risks, and non-financial risks. Non-financial risks include operational and strategic risks. Particular attention is also given to changes in the area of Environmental, Social and Governance (ESG) in the monitoring of risks. ESG risks are integrated into the RMS as risk drivers of the risk types, including by means of scenario analysis.

In addition, material risks are identified by means of indicators based on quantitative and qualitative risk characteristics and reported. Risks are further identified as part of the New Products Process (NPP), key controls of the ICS system, and daily control and monitoring activities.