The Board of Directors is responsible for the risk policy. This is implemented by the Executive Board.
CREDIT- UND COUTERPARTY RISKS
Bank Alpinum AG is not primarily a credit institution, but instead focuses on providing advice and support to a sophisticated group of natural persons and legal entities. The Bank’s lending power is only utilised, however, if this enables client assets to be acquired at the same time.
Only first-class partners are taken into consideration for the processing of transactions.
The Bank only actively offers Lombard and trust loans against readily marketable collateral.
Examples of credit and counterparty risks:
- Credit risks (including changes to ratings)
- Country risks
- Settlement risks
- Cluster risks
The interest margin business is restricted to an absolute minimum within the framework of the overall client relationship. The Bank does not offer savings deposits, bonds, medium-term notes or other fixed-interest products on the liabilities side.
Depending on its market assessment, the Bank holds trading positions in first-class, regularly traded equities or similar instruments in order to enable it to exploit price fluctuations. The trading portfolio exclusively contains equities, funds or index certificates. The positions are assessed and managed on a daily basis.
In general, foreign-exchange positions must be kept as small as possible. The credit business must be matched in the relevant currency or by using suitable currency hedging instruments. No proprietary trading in foreign currencies is currently conducted.
Examples of market risks:
- Interest rate risks
- Share price risks
- Currency risks
Long-term invested client assets are placed as fiduciary investments with matching maturities. The Bank maintains money market lines with suitable counterparties.
Examples of liquidity risks:
- Refinancing risk
- Market liquidity risk
OPERATIONAL AND LEGAL RISKS
All of the Bank’s executive bodies must ensure the development and maintenance of a corporate culture which attaches great significance to minimising risk.
Operational risks in the technical area are kept as low as possible through the extensive outsourcing of IT.
Employees must be trained and receive further training on an ongoing basis in order to maintain and build on their requisite specialist knowledge.
With regard to incentive systems, the remuneration policy must be structured in such a way that conflicts of interest and behavioural risks are minimised.
Examples of operational and legal risks:
- Internal fraudulent actions
- External fraudulent actions
- Recruitment practices and security at the workplace
- Clients, products and business practices
- Damage to tangible assets
- Business interruptions and system outages
- Execution, delivery and process management
- Adviser liability