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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
a 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 also endeavor 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.
The timely identification of these risks together with the classic business risks is a fundamental requirement for
proactive countermeasures and effective risk minimization (see “Lending policy and lending decision policy”
starting on page 55). We also continuously analyze our development opportunities. RBI views sustainability itself
as an opportunity – for our own business activities and for our stakeholders alike. 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 additional 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” on the whole. 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. Its business activities include corporate customer
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 marked 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. To successfully overcome these challenges, RBI is again
focusing on growth and intensified its activities in the area of digitization and innovation following a transformation
program that culminated in the sale of the Polish core banking operations. RBI will continue concentrating on the
CEE region, which offers structurally higher growth rates than Western Europe as well as a more attractive level
of interest rates and returns. Supplemented by leading specialist institutions in Austria, such as the building society,
asset management and pension fund management businesses in particular, RBI benefits from the stability of the
Austrian operations. 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 provides all retail customer segments with comprehensive financial services through the customers’ respective
preferred sales and communication channels.
• RBI is a reliable business partner to corporate and institutional clients that have a link to the target region, and
offers financial services in line with international standards.
• RBI distinguishes itself through strong local presence, customer focus and long-term business relationships.
• RBI utilizes the strengths of country-specific business strategies combined with central business management
standards.
Raiffeisen Bank International | Sustainability Report 2018