Within the framework of its risk management process, Hypo Group Alpe Adria allocates major significance to the active control of bank risk items. Therefore, the identification, measurement and management of all accepted risks forms an integral part of Group strategy. Final responsibility for risk strategy and the risks assumed lies with the Group Executive Board.
      The complex risk management process is described in detailed manuals, which clearly define procedures, roles and responsibilities. All documents are subject to regular modification and approval by the Group Executive Board and the boards of the subsidiaries.
      The quality of the risk management process is equally dependent upon internal and external demands. While within Hypo Group Alpe Adria the optimisation of the risk-earnings ratio and the avoidance of unacceptably high risks are the predominant concerns, the external requirements are driven by the expectations of the capital market, the rating agencies and the legislators (Basel II).
      Therefore, the Hypo Group Alpe Adria has interlocked the realisation of Basel II with an overall bank management project at Group level, in order to maximise the use of synergy effects. As a result, it has been possible to combine the realisation of Basel II with major benefits for internal controls and thus a resulting increase in bank competitiveness. Accordingly, the paramount goal of the overall bank management project is not only the realisation of minimum standards of supervision, but also rather the implementation of advanced earnings- and risk-oriented management methods within the bank.
      The development of progressive methodology in the risk controlling area and the ongoing further development of risk management processes in the responsible departments are of equal central importance. In this manner, Hypo Group Alpe Adria will secure its long-term profitability in line with a balanced relationship between accepted risk and the earnings achieved.