Risk management and internal controls

Group-wide system and policies

The ProCredit group applies a standardised and comprehensive framework of rules and policies for risk management, internal control and the prevention of money laundering and other criminal offences. All ProCredit banks are required to follow centrally set standards. The implementation of this framework is monitored regularly by ProCredit Holding. Group risk management and anti-money laundering policies are in line with German and European banking regulations and are updated at least once a year to reflect new developments. ProCredit is firmly committed to transparency and takes a conservative approach to risk management.

The following key principles of our business activity provide the foundation for our risk management:

• Focus on core business
• High degree of diversification, transparency and simplicity
• Careful staff selection and intensive training

The consistent application of these principles allows the group to manage effectively the material risks the group is exposed to, the most important risk being credit risk. The policies and their implementation are audited by the internal audit teams at the banks and at the holding company, as well as by the group’s external auditor.

More details on the group approach to risk management can be found in the most recent reports: