Dealing with risks responsibly

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Financial services inevitably involves taking risks. It is our responsibility to manage these risks and to make them clear to our clients. ABN AMRO pursues a moderate risk profile and strongly emphasises prudent risk management. This means that we only take risks we understand and that we only conduct activities that are in our clients’ and the bank’s interests.

At ABN AMRO, we lend the funds entrusted to us, such as savings ,in a responsible manner (mortgages, business finance, etc.). Our employees use their expertise every day to manage risks to which clients and the bank are exposed as effectively as possible. ABN AMRO introduced the principle of Three Lines of Defence in 2010 to safeguard risk management within the bank. Under this principle, everybody who works at the bank – staff working at the businesses, Risk Compliance, Audit and all support functions – is responsible for managing risk.

Moderate risk profile

At ABN AMRO, we only take risks we understand and that are in our clients’ interests. As such, we ensure that we are a solid and reliable partner for our clients and we keep our services affordable. To effectively assess the risks we are willing to take, we need to have good long-term relationships with, and thoroughly know, our clients. We combine this with the right balance between commercial interests and responsible risk management.

Trust based on good results

An important part of our long-term strategy is our commitment to pursue a moderate risk profile. This sends a clear signal to our stakeholders: we only take risks that are part of banking, that we understand and that contribute to our sustainable business model. The recent very positive results of the stress test and Asset Quality Review conducted by the European Central Bank show that we are a well-capitalised bank and that our credit and provisions processes are sound. They show that the prudent risk management we have pursued in recent years works. Our efforts have borne fruit, confirming that we are a healthy bank making a positive contribution to society.