UBI Banca Group

– AMA) – in combined use with the traditional standardised approach (TSA) and the basic indicator
approach (BIA) – which should also be complete by 30 th June 2012.
With regard to the second pillar, the ICAAP report as at 31 st December 2011 is to be filed with the
supervisory body in April 2012 and it will include first pillar risks, second pillar risks specified by
regulations and risks identified independently by the Group. The structure of the report gives details
of the following: strategic lines of development and the forecast horizon considered by the Group
business plan; a description of corporate governance, organisational structures and systems of
control related to ICAAP; exposure to risks, methods of measuring and aggregating them and stress
tests; the components, estimates and methods of allocating internal capital; the relationship between
internal capital, supervisory requirements and supervisory capital; and finally the self assessment of
ICAAP, which identifies areas for further growth in the methodological model.
When the ICAAP report is filed, a report will be made available to the public at the same time on the
UBI Banca website (www.ubibanca.it), in the investor relations sector, in compliance with the third
pillar requirements. The regulations introduce obligations to publish information on capital
adequacy, exposure to risks and the general characteristics of the systems designed to identify,
measure and manage them.
The information to be provided favours greater transparency in the ways in which banks manage
risk. The Bank of Italy has made special tables available in this respect in which the quantitative and
qualitative information which banks must publish is classified, thereby making the data comparable.
This part – sections 1 to 4 1 - furnishes information on the risk profiles listed below, on the relative
management and hedging policies pursued by the Group and its activities relating to financial
derivative instruments:
a) credit risk;
b) market risks:
- interest rates,
- price,
- currency,
c) liquidity risk;
d) operational risks.
Sections 5 and 6 also provide information on the risks pertaining to the insurance companies and
other companies in the consolidation.
A report on the general framework of the risks and uncertainties to which the UBI Group is exposed
is given in a special section of the management report, prepared in compliance with Legislative
Decree No. 32 of 2 nd February 2007, which implements EC Directive No. 2003/51/EC.
1 Sections 1 to 4 provide information for the banking group only, except in cases where explicit reference is made
to all the companies in the consolidation.
370