UBP’s risk-management approach is an integrated and continuous process. It pursues several crucial aims:

• Preserving the firm’s capital-base and viability;
• Balancing capital-preservation and capital-optimisation (risk/reward);
• Maximising clients’ and shareholders’ assets and seizing opportunities;
• Blending a risk-awareness culture into the corporate culture;
• Meeting regulatory and supervisory requirements at all times.

This integrated approach to risk-management relies on two perspectives: strategic risk-management on the one hand and tactical risk-management on the other.

The strategic risk-management process is a top-down approach focusing on the vision, appetite, and governance of risk and the overall risk-management framework.

Tactical risk-management is a bottom-up approach structured around UBP’s business activities (Private Banking, Asset Management,  Financial/Treasury, Institutional Asset Management)  and risk classes (market, credit, operational, reputational).

The risk-management mandate set by the Board of Directors and the Executive Committee  ( EC) is clearly defined and codified in various policies and procedures. The aim is to ensure that all significant risks associated with the Group's activities are identified, assessed and controlled, properly and in good time, for the benefit of both clients and shareholders.

In terms of organisational structure, the Group has three levels of risk-management/risk-controlling responsibilities:

• Overall guidance and supervision performed by the Committee of UBP's Board of Directors (CoB), which is responsible for setting out the general risk-management policy and strategy (vision, appetite and control standards);
• Management and operational supervision by the EC and the Financial & Operational Risk Committee (FORC);
• Risk control primarily by the Risk Management Unit, as well as by the Compliance Desk, Credit Control Department and Internal Auditing Unit.

The FORC is responsible for ensuring that UBP’s overall risk-taking is consistent with the risk appetite/risk-capital allocation, limits, policies and procedures set by the CoB and the EC and commensurate with returns and market rate expectations in all activities (e.g. Private Banking, Asset Management, Trading).