Risk management

During the lifetime of the European Fund for Southeast Europe no historic losses have ever been recorded and no asset impairment was ever reported. External audit reports were always unqualified. This high level of security is the result of a robust risk management. EFSE's risk management entails a number of core features, such as:

• Credit risk management, including an internal rating system to measure the financial strength of partner lending institutions as well as regular monitoring through on-site visits by the local offices run by the Fund Advisor.
• Management of market and asset/liability risks through an Asset-Liability Committee (ALCO), jointly operated by the Fund Manager and the Fund Advisor.
• Operational risk management, comprising frequent training of fund staff, among others.