46. Risk management and fair value

The risk management policy of the Bank aims at optimizing the structure of balance and off-balance sheet items taking into consideration the assumed risks-income relation and overall impact of various risks that the Bank undertakes in conducting its business activities. Risks are monitored and controlled with reference to profitability and capital coverage and are regularly reported in accordance with rules presented below.

The further part of the note describes all the significant types of risk involved in the Group’s operations.