Komplett Bank annual report 2019

Note 17 Related parties and other information There is a cooperation agreement between Komplett AS and Komplett Bank ASA. The agreement concerns IP rights, marketing coopera- tion and other services. The agreement was renewed in 2017 and will have a duration of 5 years. The agreement will then be renewed automatically for a year at a time until the agreement is terminated by one of the parties. Komplett Bank recognised a cost of NOK 11.9 million (NOK 10.0 million in 2018) relating to this agreement in 2019. Balances (receivables (+)/liabilities (-)) as at 31 December 2019 with Komplett AS totalled NOK -7.5 million (NOK 2.7 million in 2018). An agreement has also been entered into on product cooperation relating to the Bank’s credit card and associated benefits programme. The agreement was in 2018 prolonged for 5 additional years. An agreement has been entered into with Komplett AS on the development of a solution for the integration of the Bank’s products in the Komplett Group’s POS solutions. The Bank’s financing solution related to POS Finance as of 31 December 2018 was fully integrated into the trading platforms komplett.no and komplett.se. Note 18 Risk management General The Board has established various policies for management and control of key risks. The policies, which are updated regularly, describe both quantitative risk limits and relevant qualitative guidelines. The Board receives compliance and risk control reports relating to the established policies, from the administration regularly and as required. The Bank is exposed to different types of business risk. Operational risk and credit risk are two key risks discussed in greater detail below. Operational risk The Bank’s strategy for operational risk is defined in the Bank’s policy for operational risk. According to the Bank’s general principles, there shall be procedures for identifying and reporting operational risk. Operational risk shall be measured and managed based on systematic assessments of operational risk factors and operational risk assessments. This shall be included as an integral part of the decision-making process in the Bank. The measurement methods applied shall fulfil the measurement methods for main categories of risk. Credit risk The Bank’s general strategy for credit risk is defined in the Bank’s credit policy. The general principles stipulate, among other things, the following: · The Bank’s loans shall only be to private individuals. · The Bank’s loans shall be well diversified. · All customers shall be subject to a credit assessment. · In addition to credit score rules, the customer must also be accepted in accordance with the Bank’s policy rules and the Bank’s requirements for ability and willingness to pay. Komplett Bank Annual Report 2019 99