The mission of the Risk Management Unit (RMU) is to effectively manage all risks assumed by the Bank (including financial and operational risks), ensuring integrated risk control and necessary coordination across the Bank. The recognition of risk management as a key function of the Bank contributes to the effective fulfilment of the Bank’s mandate.
Effective risk management is essential to good governance and leads to high efficiency and optimal operational performance. Risk management at the central bank has a lot in common with that at other financial institutions, but also presents important differences arising from the central bank’s monetary policy mandate. Optimisation in the conduct of monetary policy means that a given policy outcome is achieved at the least possible risk.
The risk management policies adopted by the Bank are in line with international best practices. The methods and infrastructures in place also conform to the Eurosystem’s standards.
The RMU is fully separated from the other Departments of the Bank and reports directly to the Governor and to the Risk Management Committee of the Bank of Greece. It has direct access to all records, information and data necessary for the appropriate and unhindered performance of its tasks.
- manages the Bank’s financial risks related to its investment operations, the conduct of the single monetary policy and the provision of emergency liquidity assistance (ELA) to domestic credit institutions when needed;
- develops appropriate policies and procedures enabling the Bank’s business units to identify, evaluate and manage their own operational risks, and draws up business continuity plans;
- recommends to the Risk Management Committee of the Bank of Greece on matters relating to addressing and managing risks;
- prepares and submits to the Bank’s Administration monthly reports on the financial risks assumed by the Bank (market risk, exchange rate risk, credit risk); and
- communicates its annual action plan to the Audit Committee of the Bank of Greece on both an ex ante and an ex post basis.
The RMU comprises the following Offices:
- Operational Risk & Business Continuity Office
- Financial Risk Office