{"id":34133,"date":"2025-02-24T10:43:23","date_gmt":"2025-02-24T09:43:23","guid":{"rendered":"https:\/\/nr.stage.dekodes.no\/en\/?post_type=bc_project&p=34133"},"modified":"2025-02-24T10:43:23","modified_gmt":"2025-02-24T09:43:23","slug":"dnbs-total-risk-model","status":"publish","type":"bc_project","link":"https:\/\/nr.stage.dekodes.no\/en\/projects\/dnbs-total-risk-model\/","title":{"rendered":"DNB’s total risk assessment model"},"content":{"rendered":"\n
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Understanding and managing financial risk is crucial for banks to ensure stability and regulatory compliance. At NR, we develop statistical models that provide realistic risk assessments one year in advance, helping financial institutions evaluate capital requirements and manage risk more effectively.<\/strong><\/p>\n\n\n\n

Risk models for Norwegian financial groups <\/strong><\/h2>\n\n\n\n

Our collaboration with DNB began in 2000 with the development of a statistical model for capital requirement calculations. Since then, the model has undergone multiple revisions and gained recognition in the financial sector, leading to similar models for other banking groups, including Sparebanken Sogn og Fjordane, Sparebanken S\u00f8r, Sparebanken M\u00f8re, and Sandnes Sparebank, as well as the Sparebank1 Alliance and Gjensidige Bank.<\/p>\n\n\n\n

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Key risk categories in banking<\/strong><\/h2>\n\n\n\n

Our risk modelling approach assumes that a bank’s total risk can be divided into three main categories:<\/p>\n\n\n\n