Hf02 Header Flipchart Hand Aareal Bank

#02 Risk management

Our long-term success depends on end-to-end risk management.


Risk awareness – understanding, assessing and managing risk

The ability to correctly assess and specifically manage risks is one of the key foundations for our business model. This is why risk management is a core priority at Aareal Bank Group.

We have pursued a conservative risk policy for many years. This can be seen e.g. from the comparatively low ratio Aareal Bank has to meet under the European Central Bank's Supervisory Review and Evaluation Process (SREP). This ratio mirrors the share of risk positions in the balance sheet for which own funds must be set aside.

A strong risk culture

A strong risk culture is an integral part of our responsible corporate management. It aims to help identify risks, to deal with them consciously, and to ensure that our decision-making processes always lead to results which are balanced also from a risk perspective. Our readiness to take on risks is determined by the rules set out in our risk appetite and risk culture framework. These provide a comprehensive approach consisting of guidelines, processes, controls and systems, and describe our values and conduct in line with the risk appetite defined by the Management Board. The rules are binding on all employees and directly impact their roles, goals and targets. In turn, this means that areas of responsibility must be clearly delimited and the resulting goals and targets unambiguously defined. Our risk appetite and risk culture framework is supplemented by the divisional and task-specific instructions defined in our Written Set of Procedural Rules ("schriftlich fixierte Ordnung" – SFO).


To make sure that we live the risk culture we are aiming for, all employees have access to information about our vision and system of values at all times. We ensure this by publishing the SFO on our intranet and by implementing corresponding training measures. We monitor activities on a needs-driven basis and have established a decentralised internal control system and adequate organisational structures – including set escalation processes and sanctions. Other key issues for us are an explicit commitment by senior management, and a communications and feedback culture that ensures that employees are not penalised for pointing out potential for improvement, shortcomings, errors or possible misconduct.

A holistic definition of risk

Our risk management activities aim to ensure that all risks are identified, assessed and controlled appropriately by the respective area of responsibility responsible and that information on any irregularities is passed on in a timely and adequate manner. It is important for us here to adopt a holistic definition of risk – one that goes beyond purely economic issues to include social, ethical and ecological aspects that could impact Aareal Bank Group's success directly or indirectly.

For further information about our risk management activities, please see the Risk Report section of our Annual Report.

"Aareal Bank Group epitomises solidity and a sense of responsibility. Our fully appropriate and sustainable risk management enables us to anticipate risks, and also to take a look ahead in our lending business. This has also been the basis for our excellent financial performance."

Christiane Kunisch-Wolff - Member of the Management Board

Aareal Bank Vorstand Kunisch Wolff Christiane Zitat
Aareal Bank Group epitomises solidity and a sense of responsibility. Christiane Kunisch-Wolff Member of the Management Board

What we are working on

  • Meeting the new regulatory requirements for capital adequacy/liquidity and the rating procedures approved by the regulator as from 2019/2021

Next articles