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The business areas carry out the fundamental tasks required for optimal risk management. They enter
the necessary registrations about customers that are used in risk management tools and models, and
they maintain and follow up on customer relationships.
Each business area is responsible for preparing carefully drafted documentation before business transactions are undertaken and for properly recording the transaction. Each business area is also required to update information on customer relations and other issues as may be necessary. The business areas must make sure that all risk exposure complies with approved risk policies as well as the Group’s other guidelines. Approvals of loans and credits to retail customers and small business customers are given according to the delegation of lending authority to the individual branches and finance centres. A number of auxiliary tools are available in the approval process, including credit scoring and credit rating. Customer advisers are responsible for the basic credit assessment of customers. Their lending authorities depend on customer ratings, and they can approve credits up to certain amounts. Applications for credit facilities beyond their lending authority are forwarded to the area’s credit department, which may decide to submit applications to the Executive Board’s Credit Committee or the Board of Directors. Each business area has a local credit department reporting to the head of Group Credits in credit matters. In other matters, local credit departments report to the head of the business area. Local credit departments handle cases exceeding branch lending authority and rate small business exposures. Finally, local credit departments perform certain control functions with respect to credit granting at the branch level. |
