The Group allocates considerable resources to ensuring the ongoing compliance with approved credit limits and to monitoring its credit portfolio. It has a fixed reporting cycle to ensure that the relevant management bodies, including the Board of Directors and the Executive Board, are kept informed on an ongoing basis of developments in the credit portfolio, non-performing loans and the like. The principal risk reports submitted to the Board of Directors deal with the following topics: Annual reporting The quality of the Group’s credit portfolio Analysis of impairment and losses by business area and portfolio breakdowns by rating category, size, business area, etc. The Group’s risk management models and parameters Update on the use of risk models, including risk parameters. Risk policy Review of the Group’s overall risk policy to determine whether revisions are required. ICAAP Evaluation of the preferred risk and the level of capital in relation to the Internal Capital Adequacy Assessment Process (ICAAP).The report contains the conclusions drawn from stress testing and the effect of scenarios on expected losses and capital requirements. In addition, the Board of Directors is kept up to date on capital adequacy in the Group through separate monthly and annual reports. Quarterly reporting Key figures for the credit portfolio A snapshot credit-quality indicator focusing on unauthorised excesses and arrears, the number of upgrades and downgrades in the rating system, and trends in lending volumes. The Group’s market risk Analysis of the Group’s current equity, fixed income and currency positions and reports on the utilisation of Board-approved limits since the preceding report. Large exposures An overview of exposures equal to or exceeding 10% of the Group’s capital base and the sum of these exposures, including the percentage of the Group’s capital base it represents. Industry analyses Industry research covering some 30 industries used for credit renewals. In addition to reviewing general developments in the individual industries, these reports also deal with the Group’s aggregate exposure to the industry in question. Separate monthly reporting is available if Board-approved limits are exceeded. The head of Group Credits is a member of the Executive Board and receives a large number of additional risk reports, of which the following are the most important: Quarterly monitoring report Review of trends in a number of risk indicators, including unauthorised excesses and arrears, the number of approvals, approvals to weak and new customers and their creditworthiness, compliance with credit policies, and collateral received. Quarterly assessment of impairment testing Analysis of the trend in impairment charges based on an assessment of objective evidence of impairment of individual loans or loan portfolios. In addition, the Group prepares a monthly report on the utilisation of lines for derivatives and a daily report on unauthorised excesses. If excesses are higher than predefined limits, a recommendation on action to be taken is submitted to the head of Group Credits. The head of Group Credits is also responsible for approving changes in ratings of facilities that must be submitted to the Board of Directors. The head of Group Finance is a member of the Executive Board and, as the member responsible for the risk management area, receives a number of reports, of which the following are the most important: Weekly market risk report Information on the Group’s market risk positions and the utilisation of allocated limits. Monthly market risk report Follow-up on the internal market risk model, including sensitivity analyses of parameters applied. Monthly report on major equity positions Compilation of the largest equity holdings in the Group’s portfolio. The All Risk Committee regularly reviews trends in the Group’s business areas and the Group‘s capital adequacy and solvency presented in monthly reports for the individual areas. In addition, the Committee reviews information on the trends in the Group’s risks.		Read more about Danske Bank's external reporting and audit.