Page 15 - OeEB-AnnualReport_2013

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OeEB Annual Report 2013
Management report
Operational risk
Operational risk is the risk of loss resulting from the
inadequacy or failure of internal processes, people or
systems, or from external events. Operational risk
includes legal risk.
The central integration of operational risk management
(including information security) in the bank-wide
management of risk, as well as the corporate culture,
business continuity plans, insurance cover and similar
centrally manageable measures, together form the
framework within which the individual staff members
are required to exercise personal responsibility for
everyday risk management in their sphere of accounta-
bility. OeEB works closely in these areas with OeKB
(and has its offices within OeKB’s premises).
For emergencies and various crisis scenarios, the
operational risk management policy identifies emer-
gency and crisis response teams and sets out
responsibilities and procedures; an emergency
response manual is also in place.
Other risks
Other risks are:
– Strategic risk:
the risk of negative effects on capital or earnings as a
result of strategic business decisions and/or changes
in the business environment.
– Reputation risk:
the risk of adverse consequences from the way in
which the organisation is perceived by stakeholders
(the shareholder, staff, clients, the Austrian govern-
ment, and others).
– Business risk:
the risk of deterioration in earnings as a result of
unexpected changes in business volume or in margins.
Strategic risks and reputational risks to OeEB arise
primarily from its special position. As a result of its
mandate, OeEB’s only principal is the Republic of
Austria. A quantitative assessment of this risk would
be difficult to perform and no such assessment is
planned. OeEB continually monitors potential changes
in its operating environment that have fundamental
significance for its business activities and considers
such developments in its business strategy.