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Conversely, we are also aware of the risks that affect our business activities and we work to counteract these.
When considering the risks in connection with the environment, the negative impacts of global warming must
also be taken into account. This includes consequences for tourism, agriculture, forestry and health as well as the
damages resulting from increasingly frequent natural disasters, which contribute to the destruction or depreciation
of our own assets or assets financed by us. On the other hand, stricter environmental protection laws and regulations
can make existing investments less profitable or even unprofitable altogether. The market can also be expected
to anticipate various future developments. The withdrawal of many investors from the area of fossil energy,
especially coal and carbon-dependent industries, is an indication that such assets of our customers or investees
can be expected to fall in value over the medium term (“carbon bubble”).
With regard to social and societal risks, factors such as poor working conditions, endangerment of health and
failure to uphold human rights can play a very significant role in connection with financing and investments we
carry out. We strive never to be involved in or associated with human rights violations. We further attempt to
prevent such violations within the scope of our influence and our capabilities. In addition to our intrinsic interest in
avoiding human rights violations, it is also in our economic interest to decrease the risk of strikes, loss of personnel,
regulatory fines or compensation payments on the part of our customers.
Timely identification of these risks together with the classic business risks is a fundamental requirement for proactive
countermeasures and minimizing risk (see “Lending policy and lending decision policy” starting on page 50).
We are also constantly analyzing our development opportunities. RBI views sustainability itself as an opportunity –
both for our own business activities and for our stakeholders. Awareness of environmental and social issues has
risen and this is reflected clearly in the increased demand for fair and organic products. The market for sustainable
financial investments in particular has grown significantly in recent years and presumably will continue to do
so. In this area, it has now become necessary not only to take advantage of the opportunity for more business
and acquiring new customers but to minimize the risk of losing business to more sustainable providers. As a
consequence, the financial sector has become “greener”. We also see that the development of new sustainable
technologies can open up new business fields over the medium term.
Business Strategy
RBI is a leading universal bank in the CEE region and Austria and its business strategy is oriented towards
sustainability and a long-term perspective. Its business activities include corporate business, financial services for
retail customers in CEE and its business with banks and other institutional customers. The challenges for the
business model of RBI will continue to be influenced by supervisory and regulatory requirements, banking-specific
taxes, politically motivated market interventions, the continued low-interest environment as well as technological
developments and new competitors. RBI implemented a program of transformation to successfully address these
challenges. After the merger of RBI AG and RZB AG in March 2017, the strategic focus for the coming years lies
on growth in the most promising markets. RBI will continue focusing on the CEE region, which offers a structure
with higher growth rates than Western Europe as well as a more attractive level of interest and earning potential.
Supplemented by leading specialized institutes in Austria, such as the building society, asset management company
and pension fund management company in particular, RBI benefits from the stability of the Austrian business areas.
On the whole, this results in a balanced, attractive business portfolio.
The business model of RBI is based on the following core competences:
• RBI maintains and develops a strong and reliable brand that forms the basis for the business model.
• RBI offers comprehensive financial services to all private customer segments, utilizing in each case the
preferred sales and communication channels of the customer.
• RBI is a reliable business partner to corporate and institutional clients and offers financial services in line with
international standards, closely tailored to the target region.
• RBI is characterized by strong local ties, customer focus and long-term business relationships.
• RBI utilizes the strengths of country-specific business strategies combined with central business
management strategies.
Raiffeisen Bank International | Sustainability Report 2017