Risk inventory

Through the risk inventory, Rentenbank obtains a structured overview of all risks that may impair its net assets, capital base, results of operations or liquidity position. This also includes risk concentrations within individual risk types and across risk types.

The resulting risk profile forms the basis for the Risk Appetite Statement and for risk measurement, monitoring and management at Rentenbank. In addition, the risk inventory serves to increase risk transparency and thereby supports Rentenbank’s risk culture. The risk profile comprises counterparty default risk, market risk, liquidity risk and non-financial risks as the material risk types. Non-financial risks comprise operational risks and strategic risks. Risks arising from changes in the areas of environmental, social and governance (ESG) are also a focus of risk analysis. These are incorporated into the RMS as risk drivers of the various risk types, including through scenario analyses.

In addition, material risks are identified and reported using indicators based on quantitative and qualitative risk characteristics. Further risks are identified in the New Products Process (NPP), in key ICS controls and in day-to-day control and monitoring activities.