Risk Management Department

Main Tasks

The Risk Management Department (RMD) has the mission of effectively managing the risks to which the Bank is exposed, namely financial and operational (other than compliance) risks, ensuring risk aggregation and coordinated control at the Bank level. Recognising risk management as a key function contributes to the successful fulfilment of the Bank’s mandate.

Sound risk management is essential to upholding high standards of corporate governance and enhances operational efficiency and overall organisational performance. While risk management in a central bank has much in common with that in other financial institutions, it also has significant differences stemming from the conduct of monetary policy. Optimisation in monetary policy conduct implies that a given policy objective is achieved with the least possible risk to the Bank.

The risk management and business continuity policies adopted by the Bank follow international best practices. Also, the relevant methodologies and infrastructures comply with Eurosystem standards.

In addition, the RMD operates the In-house Credit Assessment System for Non-Financial Corporations (GR_ICAS), which has been approved by the Governing Council of the European Central Bank as one source of credit assessments within the Eurosystem collateral framework, allowing counterparties to mobilise as collateral the loans (credit claims) granted to non-financial corporations (NFCs). In this context, the RMD maintains and manages the Central Balance Sheet Office (CBSO), whose main objective is to collect, process and analyse the financial data of non-financial corporations.

The RMD reports to the Deputy Governor and the Risk Management Committee (RMC) and has direct access to all the information necessary for the smooth performance of its tasks.

The RMD is entrusted with the following tasks:

• to manage financial risks arising from the Bank’s investment activities, the implementation of the single monetary policy and the provision of emergency liquidity assistance to credit institutions when needed;
• to develop and update the Operational Risk Management and Business Continuity Management Frameworks and procedures, coordinate the implementation programme of such frameworks and provide methodological support to the Departments in order to ensure consistent implementation across the Bank;
• to recommend to the Bank’s Risk Management Committee for approval on matters relating to addressing and managing risks and ensuring business continuity;
• to prepare and submit to the Bank’s Administration Management monthly reports on the financial risks assumed by the Bank (market risk, foreign exchange risk, credit risk);
• to provide an annual work programme and an annual activity report  to the Bank’s Audit Committee;
• to develop and apply a quantitative methodology (credit scoring) and combine it with a qualitative assessment of Greek companies, in order to obtain the final assessment of their credit rating, within the framework of the Bank's In-house Credit Assessment System (ICAS);
• to assess the performance of the Bank’s In-house Credit Assessment System (ICAS) in line with the Eurosystem framework; and
• to maintain and manage the Central Balance Sheet Office, whose main objective is to provide analytical data for the Non-Financial Sector.

• Financial Risk Analysis Section
• Operational Risk & Business Continuity Section
• Credit Risk Assessment of Corporations Section
• Financial Risk Strategy Section
• Non-Financial Corporations Balance -Sheet Data Collection and Analysis Section