Risk management

Businessperson pointing at touchpad

We are committed to being a well-capitalised bank with sufficient liquidity and to delivering sustainable value to our stakeholders. To live up to our commitment, we pursue sound risk/reward management and maintain a moderate risk profile bank-wide. Based on ABN AMRO’s long-term strategy, we have defined the following five key objectives with regard to risk management:

Clean and strong balance sheet

Diversification and focus in portfolio

Our loan book is fully aligned to our strategic choices and focus areas:

Sound capital and liquidity management

Sustainability and transparency

Structured approach on risk intake and monitoring

Risk profile

As part of our long-term strategy, we are committed to maintaining a moderate risk profile. The risk profile is managed based on an integrated risk management framework. In this framework, all types of risk, cross-risk types and overarching risks are identified to provide one integrated view on the risk profile for the bank as a whole and on the risk profile of each individual business line. This is a yearly process which involves the relevant stakeholders and is subject to the approval of the Managing Board.

Risk taxonomy

We classify risks into types of risk to which the bank is, or could be, exposed. This is referred to as our ‘risk taxonomy’. We review and update it once a year to ensure that all material risks are identified, defined and taken into account in the risk governance framework. The risk taxonomy creates a common risk vocabulary and provides a checklist for use in risk assessments. Working this way helps us to manage all material risks and to identify roles and responsibilities.

The main categories are credit, market, operational, liquidity and business risk. Other types of risk such as reputational risk (including sustainability risk) and model risk relate to several risk types in the risk taxonomy.

Risk appetite

The risk appetite determines the level and nature of risk that the bank is willing to take in order to pursue its strategy, taking all relevant risks and stakeholders into consideration. The risks covered in the risk taxonomy are included in the risk appetite.

Risk culture

The bank continuously promotes risk awareness as part of the bank-wide risk culture. The moderate risk profile is embedded in the risk culture by means of communication and training and is monitored in performance assessments.

Employees are expected to adhere to the ABN AMRO business principles. These principles are fundamental to everything we do and describe how we act as a bank, how we take decisions, and how we deal with various dilemmas.

More information

In-depth information on risk management at ABN AMRO is provided in the Risk, funding & capital section of our Annual Report 2016​ (PDF 8 MB).