Enterprise Risk Management at ABN AMRO

Risk Governance contd..

Exhibit: V
ABN AMRO: Wholesale Clients

(in millions)	2002	2001	2000
Net interest revenue	2,115	2,378	1,683
Net commissions	1,866	2,220	2,819
Results from financial transactions	1,092	1,322	1,456
Other revenue	223	273	436
Total revenue	5,296	6,193	6,394
Operating expenses	4,549	5,302	5,175
Operating result	747	891	1,219
Provisioning for loan losses	742	543	148
Value adjustments to financial fixed assets	4	20	-43
Operating profit before taxes	1	328	1,114
Taxes	78	124	285
Extraordinary result after taxes	-205
Minority interests	12	17	19
Net profit	-294	187	810
Total assets	238,703	294,711	269,665
Risk-weighted assets	67,236	95,171	88,451
Full-time equivalent staff	20,238	22,423	23,003
Number of branches and offices	122	173	274

Source: ABN AMRO Annual Report, 2002

Exhibit: VI
ABN AMRO: Private Clients & Asset Management

(in millions)	2002	2001	2000
Net interest revenue	369	330	393
Net commissions	932	983	920
Results from financial transactions	42	43	23
Other revenue	80	63	115
Total revenue	1,423	1,419	1,451
Operating expenses	1,094	1,136	992
Operating result	329	283	459
Provisioning for loan losses	13	13	1
Value adjustments to financial fixed assets	1
Operating profit before taxes	315	270	458
Taxes	96	84	138
Minority interests	2	3	25
Net profit	217	183	295
Total assets	17,000	16,653	15,887
Risk-weighted assets	6,751	6,529	5,942
Full-time equivalent staff	6,179	8,879	5,275
Number of branches and offices	84	116	100

Source: ABN AMRO Annual Report, 2002.

Credit Risk

Credit risk was inherent in ABN Amro's business. All commercial activities, which committed the bank, to engage in transactions involving credit risk, required prior approval by authorized individuals or committees. The Managing Board delegated approval authority to GRM and further down to the SBUs. Decision authority was based on Global One Obligor Exposure (GOOE), which combined all direct and contingent credit limits to a given relationship globally, and the Uniform Counterparty Rating system (UCR), which was the risk rating of the individual counterparty.

The UCR was an important pillar of ABN's decision-making and portfolio management processes. The UCR was important for:

Exhibit: VII
ABN AMRO: Total Net Loans with 2002 SBU Breakdown

Total net loans with 2002 SBU Breakdown (in billions)	Total 2002	C&CC	WCS	PC&AM/ CC/AALH	2001	2000
Public sector	7.4	1.2	5	1.2	14.1	15
Private sector	247.2	172.5	52.1	22.6	260.2	245.5
Total net loans*	254.6	173.7	57.1	23.8	274.3	260.5