6 Jun 2019

NIB’s Risk Appetite Statement published

NIB’s Board of Directors has approved the Bank’s first Risk Appetite Statement (RAS). The RAS provides considerations for NIB’s risk-taking, risk mitigation and risk avoidance in a single high-level document.

The RAS aims to align the Bank’s willingness to take risk with its statutory requirements, strategic business objectives and capital planning. In addition, the RAS aims to raise risk awareness across the organisation.

The Statement complements the Banks constituent documents (the Agreement and the Statutes), internal policies, mandate framework, rules, and guidelines that create the overall legal framework for risk-taking.

The RAS is implemented through NIB’s operational policies and procedures, monitoring metrics, limit system and internal controls. Adherence to the RAS is monitored on regular basis. The senior management and the Board of Directors will review NIB’s risk appetite at least on an annual basis in order to ensure that risk taking stays within NIB’s risk bearing capacity.

As the international financial institution (IFI) of the Nordic and Baltic countries, NIB has a public policy mandate to finance projects that promote productivity gains and environmental benefits in the region. Financing is provided in the form of long-term loans and guarantees, and NIB is willing to support its customers by financing projects located also outside NIB’s member countries.

NIB’s Risk Appetite Statement is available here (PDF).