In observance of current norms, the UBI Group has adopted a risk control system which disciplines and integrates the organisational, regulatory and methodological guidelines of the system of internal controls with which all Group member companies must comply in order to allow the Parent Bank to perform its activities of strategic, management and operational control in an effective and economical manner.
Group member companies co-operate pro-actively in identifying risks to which they are subject and in defining the relative criteria for measuring, managing and monitoring them.
The key principles on which Group risk analysis and management are based in order to pursue an increasingly more knowledgeable and efficient allocation of economic and supervisory capital are as follows:
- rigorous containment of financial and credit risks and strong management of all types of risk;
- the use of sustainable value creation logic in defining the propensity to risk and the allocation of capital;
- definition of the Group's propensity to risk with reference to specific types of risk and/or specific activities in a set of policy regulations for the Group and for the single entities within it.
One particularly important objective of the UBI Group, set forth in the 2007-2010 Industrial Integration Plan, is the "integrated" continuation of the process already set in motion individually in the banks that formed the Group prior to the merger to comply with the norms of the Basel 2 New Accord on Capital (Bank of Italy Circular No. 263/2006).
In this respect UBI has started a Basel 2 project with the medium-to-long term aims of achieving recognition of the use of internal models for the purposes of estimating minimum capital requirements and of implementing the second and third pillars of the New Accord on Capital just mentioned.