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.