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What is Bondora’s risk management model?

Bondora Group’s risk management function is structured in accordance with the “three lines of defense” model, which clarifies roles and duties within an organization.

The responsibilities of each line of defense are:

  • Own and manage risk and control (i.e., front-line operating management).
  • Monitor risk and control in support of management (in accordance with the risk, control and compliance functions put in place by management).
  • Provide independent assurance to the Management Board and senior management regarding the effectiveness of risk management and controls (i.e., through internal audits).

The risk management function is performed by Bondora Group’s operational management, which includes specialists in credit risk assessment, market risk, IT security, operational risk and compliance. Specific risk management responsibilities are delegated to the heads of the respective departments, who report to the Management Board. Risk management is further reviewed by the Supervisory Board on a quarterly basis.

Different risk management components are detailed in the following articles:

  • Operational risk
  • IT risk
  • Credit risk
  • Liquidity risk
  • Business, strategic and reputation risk
  • Regulatory risk
  • Interest rate risk
  • Business continuity

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* Capital at risk. Investments made with Bondora are not guaranteed, nor is the preservation of value invested guaranteed. Please note that the yield achieved in past periods does not guarantee the rate of return in future periods. The yield of the Go & Grow Unlimited tier is up to 4% p.a. The yield for Go & Grow is up to 6.75% p.a. Before deciding to invest, please review our risk statement and consult with a financial advisor if necessary.