Risk categories
audited information

The LLB Group is exposed to various types of risk and differentiates between the following risk categories:

Risk categories (Chart)

Market risk

The risk of losses arises from unfavourable changes in interest rates, exchange rates, securities prices and other relevant market parameters.

Liquidity and refinancing risk

Represents the risk of not being able to fulfil payment obligations on time or not being able to obtain refinancing funds on the market at a reasonable price to meet current or future payment obligations.

Credit risk

The potential loss is inherent in the partial or complete default of expected payment flows as well as in the impairment of open credit balances on account of the downgrading of borrower's creditworthiness.

Operational risk

Is the danger of losses due to the unsuitability or failure of internal procedures, people or systems or as a result of external events.

Strategic risk

Arises as a result of decisions taken by the Group Executive Board, which have a negative influence on the survival, development ability or independence of the LLB Group.

Reputation risk

If risks are not recognised, reasonably controlled and monitored, this can lead not only to substantial financial losses, but also to damage to the Group's reputation.