It is essential for the protection of the reputation, the maintenance of the excellent financial strength and the securing of the sustainable profitability of the LLB Group that risks are dealt with prudently. Risk management is based on risk policy and encompasses the systematic identification and assessment, reporting, management and monitoring of credit risks, market risks, liquidity risks and operational risks as well as asset liability management (ALM). The LLB Group applies an appropriate organisational and methodological framework for assessing and managing risk (see chapter “Risk Management”). The Groupwide treasury manages the risks in the banking book that arise from banking activities, specifically liquidity, interest rate and foreign currency risks.
Combating money laundering and the financing of terrorist or criminal activities as well as minimising regulatory risks – especially in cross-border business – are given highest priority in the LLB Group as part of risk management.