The Management Board reports to the Supervisory Board on all matters for which the reporting obligation is prescribed by the applicable regulations. Moreover, the Management Board informs the Supervisory Board about any other matters determined by a resolution of the Supervisory Board.
In performing their functions, members of the Management Board shall at all times comply with the requirements of the Banking Act (hereafter: the ZBan-2) applicable to members of the Management Board, in addition to fulfilling the following duties and tasks:
- to act in accordance with the requisite professional diligence and, in particular, to ensure that the Management Board carries out its work in accordance with the provisions of the ZBan-2
- to act in an open, fair and independent manner in order to effectively assess the decisions of the senior management concerning the running of Nova KBM
- to act in accordance with the highest ethical standards of governance, taking into account the prevention of conflicts of interest
- to dedicate sufficient time to their duties, so that these are carried out effectively, taking into account the requirements of the ZBan-2
In accordance with the ZBan-2, the Management Board shall set up a risk management function that reports directly to the former and that is functionally and organizationally segregated from the other functions of Nova KBM in which conflicts of interest could arise vis-à-vis the risk management function. To that end, it must take into account the nature, scope and complexity of the activities Nova KBM performs.
The Management Board shall establish and implement the type of internal governance arrangements set out in the ZBan-2 that facilitate the effective and prudent governance of Nova KBM based on clearly defined competences and responsibilities, and on policies and measures to prevent conflicts of interest.
Within the scope of its powers and duties, the Management Board is responsible for defining, adopting and regularly reviewing the strategy and policy for taking up and managing the risks to which Nova KBM is or could be exposed in its operations, including risks from the macroeconomic environment in which Nova KBM operates, taking into account the current business cycle.
For making decisions concerning the operations of individual segments of Nova KBM, the Management Board has appointed various committees, such as the Bank Credit Committee, the Problem Loan Committee, the Liquidity Committee, the Assets and Liabilities Committee (ALCO), the Operational Risk Committee, the Corporate Banking Committee for Active Monitoring and Recovery of Loans Outstanding to Legal Entities and Sole Proprietors, the Customer Classification Committee, and the Fit and Proper Committee (the committee responsible for assessing the suitability of officers holding key positions, including members of the management and supervisory bodies).
Further details concerning the composition of the Management Board as well as the composition and work of Management Board committees are set out in the 2017 Annual Report of the Nova KBM Group and Nova KBM, and in the document entitled 'Disclosures made by Nova KBM on the basis of its consolidated financial position for the year 2017'.