Annual and interim reports

Risk management

This chapter provides an overview of FMO's risk governance and risk management approach. The sections describe the key risk domains relevant for FMO and developments throughout 2020.

Capital Adequacy

Capital is central to a bank’s ability to absorb unexpected losses and to be able to continue its operations. FMO aims to maintain a strong capital position that meets regulatory requirements and supports its AAA rating.

Financial Risk

Investment risk is defined as the risk that actual investment returns will be lower than expected returns, and includes credit, equity, concentration and counterparty credit risks.

Business risk

Environmental & Social (E&S) risk refers to risk posed by (potential) adverse impacts of the FMO investments on the environment, their employees and workers, communities, and other stakeholders.

Non-Financial Risk

Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events, including legal risks, excluding strategic risks. This is the ‘Basel’ definition of operational risk.

Segment reporting by operating segments

The Management Board sets performance targets, approves and monitors the budgets prepared by servicing units. Servicing units are not identical to the strategic sectors.

Read more ›Segment reporting by operating segments

Information about geographical areas

FMO operates in the following four geographical regions: Africa, Asia, Europe & Central Asia, Latin America & the Caribbean.

Read more ›Information about geographical areas

Disaggregation of revenue

The following table sets out the disaggregation of the Remuneration for services rendered based on the primary geographical areas and strategic sector.

Segment reporting of funds and programs managed for the risk of the Dutch Government and for other public funding

Apart from financing from its own resources, FMO provides loans, guarantees and equity investments from special government funds, within the conditions and objectives of these programs.

Read more ›Segment reporting of funds and programs managed for the risk of the Dutch Government and for other public funding

Analysis of financial assets and liabilities by measurement basis

The significant accounting policies summary describes how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognized.

Read more ›Analysis of financial assets and liabilities by measurement basis