| Earnst & Young Banking Risk Radar Practical Implementation in Nordea Bank Finland Plc. | Risk Evaluation and Recommendation on Improvement | | | |

Prepared by:
Sergey Kovalonok
Dmitry Vinichenko
Artjom Kostjukovich

|

Introduction
Searching for an appropriate case study first of all we were interested in not what we can give to this work, but what this work can give to us. Yes, a famous quote of John F. Kennedy, but, probably, more egocentric. Indeed, we wanted to gain. What exactly? The most important we wanted to gain the feeling of success after a difficult work. As we mentioned difficult we wanted a challenge. As we mentioned a challenge it means we didn’t want to take a company where the problem is evident, which by our understanding is any negative event in the company such as financial losses or bad publicity. After a series of discussions, we decided to take a very successful company and find how we can help to make it even more successful. The reason for such approach is that it becomes more difficult to find any serious issues, but at the same time the reality of such case increases as in the real world, in most cases, we are employed by well functioning companies, where these serious issues are not so evident.

Table of Contents Nordea Profile 3 Selection of evaluation method 5 Bank & Capital Markets Risk Radar 6 Nordea Bank evaluation 7 Global financial shocks 7 Credit shocks and exposures 9 Reputation risks 10 Compliance and regulatory risk 11 Global market liberalization and consolidation 12 Geopolitical shocks 13 IT risks 15 Corporate governance and internal controls failures 16 Competition from non-bank banks and specialists and Increasing pressure on margins 20 Identification of issue, challenges and opportunities 21 Expansion in Baltic Countries and Poland 22 IT Development 26