Riskaptit - riskkultur

Maria Holmström Mellberg, Nordea

2014-05-15

• Nordea

• Nordea experiences

• Financial Stability Board

and other regulators

• Discussion

• Nordea

• Nordea experiences

• Financial Stability Board

and other regulators

• Discussion

4 •

” Everything everybody does in Nordea has one purpose:

to create great customer experiences!

- Christian Clausen, President and Group CEO

Headline lower line

Sub-head line

Single medium chart axis

Right content border

Slide bottom border

Left border Right border Left content border

Comment text box top

Content and chart border

Small chart axis

Sub-head line

Small chart top

Small chart axis

Left and right small lower comments top border

Single medium chart toptop

Heading

Primary chart

colours

Sub-head

Content lines

(Non-Nordea)

Small chart top

76

116

154

166

166

166

64

64

64

163

82

115

239

178

137

119

154

188

175

80

70

233

170

0

217

217

217

Page numbers 166

166

166

Secondary

chart/diagram

colours

(Non-Nordea)

185

205

229

242

242

242

Other chart and

ornamental

colours

239

241

204

211

157

155

204

102

0

127

127

127

82

82

82

217

217

217

Comments 76

116

154

166

166

166

Nordea is the largest financial services group in the Nordic

and Baltic sea region

5

11 million customers - 8 home markets

- Approx. 10 million personal customers

- 520 000 corporate customers, incl. Nordic Top

500

Distribution power - Approx. 800 locations in total

- Approx. 7 million Netbank customers

Financial strength - EUR 10.0bn in full year income (2013)

- EUR 636bn of assets (Q1 2014)

- EUR 28.2bn in equity capital (Q1 2014)

- AA credit rating

- Core Equity Tier 1 capital ratio of 14.6% (Q1 2014)

EUR ~41.6bn in market cap - One of the largest Nordic corporations

- A top-10 European retail bank

Nordea = Nordic ideas

About me

• Maria Holmström Mellberg

• As of 1 February 2014: Regulatory Coordinator, Operational Risk and Compliance

• International Diploma in Compliance

• Lawyer to my occupation

• 20+ years in banking business

• 2014-05-15

6 •

Group organisation

Nordea Bank Russia Igor Bulantsev

Ari Kaperi

Group Risk

Management

Group CRO

Casper von Koskull

Wholesale Banking

Peter Nyegaard (COO)

Capital Markets

Services (CMS) Henrik B. Jespersen

Lennart Jacobsen

Retail Banking

Mads G. Jakobsen

(deputy)

Group Credit Control Klara Lise Aasen

International Units Anne-Margrethe Firing

Torsten H. Jørgensen

Group Corporate Centre

Group CFO

Banking Finland Topi Manner

Banking Baltics Inga Skisaker

Banking Sweden Hans Jacobson

Banking Norway John Sætre

Banking Denmark Anders Jensen

CIB Denmark Jørgen Høholt

CIB Norway Cato A. Holmsen

Nordea Finance Jukka Salonen

Group Legal Lena Eriksson

Group Credit Risk Jorma Timonen

Group Operational

Risk Anders M. Jørgensen

Group Market and

Counterparty Credit

Risk Niels N. Kjær

CIB Finland Olli-Petteri Lehtinen

Transaction

Products Mikael Bjertrup

Life & Pensions Snorre Storset

Asset Management Allan Polack

Savings & Wealth

Offerings Mads Kaagaard

Gunn Wærsted

Wealth Management

Group Internal Audit

Eva-Lotta Rosenqvist

Shipping, Offshore &

Oil Services Hans Chr. Kjelsrud

CIB Sweden Johan Näs

Concepts &

Operating Model Ellen Pløger

Segment CIB Claus Asbjørn Stehr

IT – Capital Markets Peter Lunding

Christian Clausen President and Group

CEO

Group Identity &

Communications

Claus Christensen

(acting)

Group Human

Resources

Henrik Priergaard

Markets - IB Svante Andreen/

Jan Rasmussen

Markets – FICC Erik Ekman/ Kenneth

Steengaard

International

Private Banking Thorben Sander

Private Banking

Denmark Hans Henrik Klestrup

Private Banking

Finland Jukka Perttula

Private Banking

Norway Torsten Østensen

Private Banking

Sweden Anders Scherlund

Markets - Equities Gorm Praefke

Martin Persson

Strategy, Support

& Control Kerstin Winlöf

Operations Ossi Leikola

IT- Retail Banking Christian Bornfeld

IT

Group Functions Tuija Pirttilä

Group Processes Erik Gjötterberg

Group Treasury Niklas Ekvall

Group Finance

& Reporting Frank Søllested

Group Strategy

& Business Control Johan Ekwall

Investor Relations Rodney Alfvén

Group Capital Andreas Green

(acting)

Group Workplace

Management Ove Hygum

Group IT Poul Raaholt

May 2014

Group Compliance

Erik Kjellberg

Corporate Social

Responsibility Liisa Jauri

Strategic

Partnerships Peter Lybecker

• 2014-05-15

7 •

• Nordea

• Nordea experiences

• Financial Stability Board

and other regulators

• Discussion

Defines Nordea’s risk taking boundaries

Clear link between risk boundaries and Nordea’s business strategy

19 specific risk boundaries – across all risk types – defined at Group level

Five statements on Operational risk and compliance

Quarterly reporting and follow-up

Follows the top risk mitigation from the Group risk map

Quarterly Risk Appetite reporting

For illustration only

• 2014-05-15

9 •

Monthly Risk and Capital reporting

• Monthly consolidated risk report

covering all major risk types

• The objective is to highlight key

developments and potential issues

regarding all risks to Nordea’s senior

management and Boards

• Oprisk loss and internal

irregularities

• Compliance

• 2014-05-15

10 •

For illustration only

Risk culture statement in a Nordea Group Directive

“Risk culture drives behaviours and a sound risk culture is therefore of

fundamental importance for effective risk management.

In order to manage operational and compliance risk a common set of standards

and a sound risk culture is essential as is also to follow best practice regarding

market conduct and ethical standards in all business activities.

In order to ensure a sound risk culture, all employees are expected to support a

culture of:

• risk transparency, effective communication and information sharing regarding

current and emerging risk across the organisation;

• acknowledgement of risks and continuous and constructive challenge of

actions and preconceptions at all levels of the organization; and

• continuous promotion of ethical business practices.

Nordea Operational Risk Policy, June 2013

• 2014-05-15

11 •

”

”It’s all about people” – from recruitment to post-exit

• 2014-05-15

12 •

Awareness and training in three dimensions

• 2014-05-15

13 •

• Nordea

• Nordea experiences

• Financial Stability Board

and other regulators

• Discussion

• 2014-05-15

15 •

• Nordea

• Financial Stability Board

and other regulators

• Nordea experiences

• Discussion

DISCUSSION

Conclusion

Critical success factors:

Concrete

Visible

Follow-up

Connect

18 •

• 2014-05-15

19 •

Riskaptit - riskkultur

Maria Holmström Mellberg, Nordea

2014-05-15