Financial Risk Management
It is FMO's mission to take risks that commercial parties
are not usually prepared to take. A glance at FMO's
portfolio reveals the institution's development mission: investing
in a diversified portfolio in emerging markets. The
main financial risks FMO is exposed to are credit risk, currency
risk, equity risk and liquidity risk. Reference is made to the
annual report for information on operational risk and reputational
risk.
The financial risk chapter is structured as follows: first
the developments in 2011 will be elaborated, then a brief overview
of FMO's risk management organization will be given, followed by
specialized paragraphs on credit risk, equity risk, currency risk,
interest rate risk, liquidity risk and FMO's capital management
framework.