Risk management

RELEVANT CORPORATE STRUCTURES

The policies relating to the acceptance of risks are defined by the Board of Directors of the Parent Company, with support from specific Committees, among which the  Management Control Committee and the Risks and Sustainability Committee as well as the action of the Chief Risk Officer who reports directly to the Chief Executive Officer.

MAIN RISKS

The Group is subject to risks that are an inherent part of its business activity. These risks include: credit risk, market risk, foreign exchange risk, liquidity risk, operational risk, risks specific to insurance business, strategic risk and reputational risk.

INFORMATION RELATING TO EXPOSURE TO RISKS

In the framework of the adoption of "Basel 2" by the Italian banking system, the Bank of Italy, with Circular No. 263 of 27 December 2006 "New prudential regulatory provisions for banks" defined the ways whereby domestic banks or banking groups had to disclose information relating to capital adequacy, exposure to risks as well as the general features of the systems for identification, measurement and management of those risks (so-called Third pillar of Basel 2 - "Pillar 3"). 

With Regulation (EU) No. 575/2013 and Directive 2013/36/EU (respectively the "CRR - Capital Requirements Regulation" and the "CRD - Capital Requirements Directive"), which transposed the Basel 3 framework into European legislation, starting from 1 January 2014, the ways by which banks and banking groups have to disclose the aforementioned information (so-called Third pillar of Basel 3 - "Pillar 3") were revised.
Further amendments and additions – including those related to public disclosure – introduced by the “Final Basel 3 Framework,” also simply referred to as Basel 4, have been incorporated into Regulation (EU) 2024/1623 (so-called CRR3), applicable from 1 January 2025.

- Third pillar of Basel regulation ("Pillar 3")

Within the scope of financial statement disclosures, the Bank of Italy, with Circular No. 262 of 22 December 2005, “Banks' financial statements: layouts and preparation” regulated, in compliance with the international accounting standards IAS/IFRS, the separate and consolidated financial statement formats, the Notes to the financial statements (which include Information on risks and relative hedging policies and Information on capital, respectively in Part E and Part F), and the report on operations that banks and parent financial companies of banking groups are required to prepare.

- Information on risks and relative hedging policies
- Information on capital

As provided for by specific guidelines of the European Banking Authority (EBA), banks with a leverage ratio exposure measure exceeding 200 billion euro - like the Intesa Sanpaolo Group - have to make publicly available the information concerning the indicators used in the assessment methodology on their website. In compliance with the recommendation of the Financial Stability Board, the Basel Committee on Banking Supervision developed the assessment methodology to identify the Global Systemically Important Banks ("G-SIBs") that are subject to higher loss absorbency requirements from 1 January 2016.

- Assessment methodology indicators to identify the global systemically important banks ("G-SIBs")

By its Circular No. 285, the Bank of Italy introduced into the Italian regulations the provisions included in art. 89 of Directive 2013/36/EU (CRD IV) which require specific disclosure obligations broken down on a country-by-country basis. Institutions are required to disclose, annually, specifying, by each country where they have an establishment, a set of information to be prepared on the same basis, and with the same criteria, as those adopted when preparing the financial statements.

- Country-by-Country Reporting