Page 24 - BKT Annual Report 2024 EN

Risk Appetite

BKT overall risk philosophy is to assume/take risks, in support of its client businesses, which have
been independently analyzed by the risk function, approved by the appropriate authority, and which
can be monitored on a regular basis through appropriate infrastructure. Risk-related businesses
must provide a fair return so that risk/return profile remains in balance. Risk-related businesses which
do not provide a fair return represent an inefficient use of risk capital and may expose the bank to an
excess of losses.

BKT operates as sustainable and safe

bank that conducts its activities in a

prudent manner, considers the interests

of customers and ensures it can meet

its obligations to key stakeholders

(customers, investors, regulators and

employees).

As part of our long-term strategy, we are committed culture is created by day-to-day actions and the
to maintaining a moderate risk profile managed based way the key decisions are made and communicated.
on an integrated risk management framework. BKT is Cooperation and constructive dialogue are part of
the bank of choice by all its stakeholders providing the sound risk culture, as they foster an environment
“sustainable and transparent relationship banking of open communication to reach common goals. A
services, business operations with the highest sound risk culture enables to do the right thing even
customer service quality” to customers, through in challenging circumstances, supports the bank
committed people, recognizing that our long-term to identify its risks and to adhere to its values and
sustainability is dependent on having sound capital principles of highest ethical standards. It is everyone’s
and liquidity to meet all obligations and liabilities as responsibility to contribute to the sound risk culture of
they fall due through the cycle. organization.

BKT aims to have a balanced selective capital and BKT promotes a culture of integrity and high ethical
liquidity allocation between lending and treasury standards. We aim for a high level of competence and
activities under a geographically balanced model with support each-other by sharing information, skills and
the objective to maximize the return and value within experiences. We have strong risk awareness, and we
policy constraints that address liquidity and market critically review and challenge the existing practices. We
value volatility. foster an atmosphere where constructive challenging
is a natural part of discussions and decisions on risk-
Clear governance structure, policies and procedures taking, risk awareness and risk culture.
supports the creation of a sound risk culture. The risk

24 BANKA KOMBËTARE TREGTARE