Sound risk management has been crucial for the successful development of our institution. The risks inherent in our activities can only be identified, assessed, monitored and properly managed if the appropriate management resources and the requisite structures are in place – including a Risk Management Department, risk oversight committees and regular reporting.

For this purpose the bank has consistently developed its risk management system in line with its growth, both investing in the dedicated risk management personnel as well as in the broader risk committee structure. Therefore, while the Credit Risk Committee focuses on the bank's credit risk, the Assets and Liabilities Management Committee (ALCO) mainly addresses liquidity risk, funding risk, inter-bank exposure risk, currency risk and interest rate risk, while maintaining an overview of compliance risk and performance risk. The Operational Risk Committee was formed as a forum for open discussion regarding the operational risks the bank faces in its daily operations and, for this purpose, the loss event database continues to serve as a valuable source of risk identification. In addition, the aim of the Steering Committee is to reduce the operational risk connected with the implementation of new projects.

Finally, taking into account the overall risk position, at 02.04.2020, the international credit rating agency Fitch Ratings confirmed the bank's long-term rating to BBB- with a stable outlook. ProCredit Bank AD Skopje is the only bank on the market with international credit rating from Fitch Ratings and has the highest possible rating a company can have in R.N.Macedonia.

Nonetheless, we do not intend to rest on our laurels: risk management is a developing field, where procedures and tools are constantly being reviewed and improved. Such is our approach to risk management.