Clear and effective individual decision-making authority, controlled risk-taking and monitoring by the Board of Directors, CEO and dedicated committees, form the cornerstones 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|
|Aggregate LCR - ISK|
|Aggregate LCR - FX|
|Operational risk||Operational scope - Real changes to REA base|
|Funding risk||Net stable funding ratio - total|
|Net stable funding ratio - FX|
|Economic capital targets|
Active internal controls form a cornerstone of robust risk governance and are conducive to the Bank operating in accordance with its risk policy and risk appetite. A total of 64 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 endeavours to maintain good relations with regulators and to ensure that information disclosure is at all times accurate.
Landsbankinn publishes a risk report that provides in-depth information on all aspects of the Bank's risk management and risk assessment methods. The report complies with the disclosure requirements of Pillar III of the Basel III rules on the capital requirements of financial undertakings.
Landsbankinn published a risk report on 6 February 2020. The report is in English.