Management structure

According to the Group's two-tier executive management structure, the Board of Directors, all of whom of are non-executive members, sets forth the general principles for Danske Bank's affairs.

The Board is responsible for ensuring that the Group's organisation is sound and in this capacity appoints the Executive Board, the Group Chief Auditor, the Deputy Group Chief Auditor and the Secretary to the Board of Directors.

The Executive Board is responsible for the day-to-day management of the Group.

External auditors are appointed at the annual general meeting.

Rules of procedure
Danske Bank's rules of procedure for its Board of Directors and Executive Board lay down rules for the responsibilities of the Board of Directors and the Executive Board and for the division of responsibilities between them.
Rules of procedure

Risk policy
The Board of Directors lays down the general risk policies and frameworks, including the general principles for the management and monitoring of risk. The Board of Directors also approves the largest credit applications. In addition to reviewing ongoing reports on the utilisation of risk limits, the Board of Directors regularly reviews portfolio analyses on the sectors and industries to which the Bank has the largest overall credit exposures.

The management of the individual business area is, within the framework set forth, responsible for the risks the area incurs and for actively managing these risks through its local credit and risk management functions.

Credit procedures and management
Group Credits is, in addition to being responsible for credit procedures, in charge of monitoring compliance with allocated limits within the individual risk areas and for structuring and monitoring the overall reporting of Group risks.

To make its control and reporting routines as secure as possible, the Group segregates the departments that trade in the financial markets from those responsible for settling and controlling transactions.

All-Risk committee
The Bank's All-Risk committee consists of the members of the Executive Board and senior staff from selected business areas.

Within the framework determined by the Board of Directors, the All-Risk committee is responsible for implementing:

• the overall balance sheet structure and the policy determining changes in balance sheet items
• the Group's solvency targets and rating strategy
• pricing of intra-group transactions
• general principles for the management and monitoring of market, liquidity and operational risks
• the Group's overall investment strategy
  
  

The Group Finance & Business Analysis department is responsible for the operational management of capital.

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Last updated/revised on October 12, 2007