All our risk categories can include a sustainability perspective. The Board of Directors has the ultimate responsibility for limiting and following up on the sustainability risks. The main principle of the risk management is based on the three lines of defence, the first being the business units, the second comprising Group Compliance, Information Security and Group Risk Management functions and the third comprising the Group Internal Audit. In addition to the risks being described in Note 3 of the annual report, TF Bank has identified the following specific sustainability risks:

Sustainability risk Consequence Management
Excessive indebtedness
The risk that TF Bank contributesto excessive indebtedness in society
The trust in TF Bank and the financial sector as a whole may decrease, customers may face financial difficulties For every individual application, TF Bank ensures accurate credit assessment through our established credit granting process that is continuously being tested, developed and improved.
Compliance
The risk that TF Bank fails to comply with current regulations in its markets
The trust in TF Bank and the financial sector as a whole may decrease, TF Bank may receive fines or in a worst-case scenario lose permissions TF Bank’s compliance function continuously work to ensure that TF Bank fulfils all applicable regulations, often in close dialogue with local supervisory authorities. A whistle-blower function is available to all employees.
Corruption
The risk that TF Bank’s employees act on their own interest and in violence with the company’s code of conduct
The trust in TF Bank may decrease All employees undergo training in the code of conduct, and special training regarding anti-corruption. The training provides guidance in how to act if being uncertain in a relation or business situation.
Money laundering and terror financing
The risk that TF Bank’s services are used for money laundering and terror financing
The trust in TF Bank and the financial sector as a whole may decrease, TF Bank may receive fines or in a worst-case scenario lose permissions Risk assessment and KYC process for every new customer in the bank. Continuous monitoring of transactions and activities. Suspicious activities are reported to relevant authorities.
Suppliers
The risk that TF Bank’s suppliers act in a way that may harm the bank’s operations or trust in the market
TF Bank may suffer both from a trust and financial perspective TF Bank reviews each new supplier based on different criteria. Suppliers must accept TF Bank’s supplier code of conduct, with a yearly follow-up.
IT and data security
The risk that TF Bank becomes the target of an IT attack or data breach with the purpose of obtaining customer data or exposing customers to fraud
TF Bank’s customers may suffer financially or integrity-wise, the trust for TF Bank in the market may decrease, which could lead to outflows TF Bank has well-established and high-quality guidelines and routines for information security, and uses security measures such as SSL encryption, backup and firewalls.
Health and safety
The risk that TF Bank’s employees suffer from illness or that the workplaces don’t fulfil work environment requirements
TF Bank may lose staff, the employer brand may be harmed, and TF Bank could as a consequence face difficulties to recruit new employees TF Bank works with preventive work environment activities in close cooperation between management, staff, the work safety organisation and occupational health. TF Bank continually evaluates the Company’s efforts regarding work environment in order to be able to continuously improve the work environment.