Risk management and capital adequacy
Banking and financial activity is characterized by a high degree of implicit uncertainty. Identifying, understanding and managing the risks associated with this uncertainty is essential to ensure sound, profitable and sustainable management. Adequate capitalization, in addition to the risk management processes, allows unpredictable losses such as shocks on financial markets to be contained.
One of the distinguishing features of the Mediobanca Group since its inception has been its approach to risk management which is based on criteria of prudence and selectivity, and its high degree of capitalization (above the regulatory requirements and among the highest capital ratios among Italian banks). Mediobanca has adopted rules, procedures and organizational structures which are intended to:
- safeguard the integrity of the Bank’s capital for the direct benefit of its shareholders, customers and employees
- support the formulation and implementation of the company’s strategies
- encourage sustainable and long-lasting growth for the Bank and enhance the return for shareholders
- structure effective and reliable corporate processes and procedures
- ensure that the Bank’s activities confirm with the rules and regulations in force.
The Risk Management unit presides over the functioning of the Bank’s risk system:
- defining the appropriate methodologies for measuring the set of risks, current and future, in line with the regulatory provisions and the management decisions taken by the Bank
- monitoring the risks concerned and checking that the limits set for the various business lines have all been met.
Last update: 14/07/2016