Clear and effective individual decision-making authority, controlled risk-taking and monitoring by the Board of Directors, CEO and dedicated committees, form the cornerstone of risk management at Landsbankinn.
|Average probability of default|
|Loss given default|
|Interest rate and indexation risk in the banking book|
|Liquidity risk||Aggregate LCR -total|
|Aggregat LCR - FX|
|Operational risk||Operational scope - Real changes to REA base|
|Funding risk||Net stable funding ratio|
|Economic capital targets|
Active internal controls form one of the cornerstones of robust risk governance and are conducive to the Bank operating in accordance with its risk policy and risk appetite. A total of 58 employees work in Landsbankinn's internal control functions; within the Risk Management division, in Compliance (a special function directly under the CEO), and in Internal Audit.
Internal control is a process shaped by the management and employees of Landsbankinn. Internal control comprises all actions taken with the aim to support, manage, mitigate or monitor certain activities and in so doing increase the likelihood of the Bank attaining set goals.
Landsbankinn seeks to maintain good relations with regulators and to ensure that information disclosure is at all times accurate. In 2018, a total of 357 cases were logged in Landsbankinn's document management system in relation to communications with the FME and the Central Bank, not counting regular reporting.
Landsbankinn has in recent years published a risk report that complies with the disclosure requirements of Pillar 3 of the Basel III rules on the capital requirements of financial undertakings. The report provides in-depth information on all aspects of the Bank's risk management and risk assessment methods.
The risk report is intended to present a true and fair picture of the Bank's position and it includes key information on scope, exposures, risk assessment process, equity position and other important and related factors.
Landsbankinn published a risk report on 7 February 2019. The report is in English.