Carnegie’s business operations mean that the Group is exposed to the following risks:
Market risks are risks of loss or declining net interest income resulting from changes in interest or exchange rate and share prices, including the price risk in conjunction with divestment of assets and closing of positions.
Credit risks are risks of loss due to a counterparty not being able to meet its obligations or some other type of counterparty exposure.
Liquidity risks are risks of loss or costs that are higher than expected for ensuring that the Group’s payment obligations are met on time.
Operative risks are risks of losses due to inadequate or unsuccessful internal processes, human errors, faulty systems or external events. The operative risk also includes a legal risk. The legal risk is the risk of losses that arise due to commitments in a contract not being able to be fulfilled on legal grounds. This includes in part the risk of inadequate documentation, insufficient authority and/or expertise on the part of the counterpart and a lack of clarity regarding the contract’s legal status in competitive situations.
The goal of Carnegie’s risk control organization is to control and in other ways contribute to the line organization handling the risks in operations in an adequate manner. Guidelines and routines for risk control have been established with the objective of identifying, measuring, controlling and following up the most important risk areas. Taking and exposing operations to risks is an important part of Carnegie’s business. Carnegie therefore continuously develops clear and practical methods for these risk exposures that at all times must be within established limits and mandates.
Preventative measures are a central component in the Group’s work with risk control. Both business management and the various risk control functions strive for high awareness regarding guidelines and routines among Carnegie’s employees, including how to measure, monitor and evaluate Carnegie’s risk profile and maintain it within the prescribed limits.