Avanza Bank Holding

Limited exposure to climate and sustainability risks in the balance sheet

Climate and sustainability risks tied to the business operations

Risks associated with personnel and social issues

Human rights risks

Anti-money laundering and terrorist financing

Compliance risks

1. Interest Rate Risk: As with all banks, Avanza Bank Holding AB is subject to interest rate risk, which refers to the risk of loss due to changes in the market or economic conditions that can affect its ability to borrow and lend money at competitive rates.

2. Market Risk: The stock market is unpredictable and can be subject to sudden changes in economic or political events. If Avanza Bank Holding AB invests in stocks or other financial instruments, it is exposed to the risk of the market not performing as anticipated.

3. Credit Risk: Avanza Bank Holding AB is exposed to the risk of default, meaning that customers or other institutions may not repay loans or investments.

4. Liquidity Risk: Avanza Bank Holding AB can suffer a loss if its assets can not be quickly converted into cash to meet its obligations. This could happen if their clients withdraw large amounts of money or their lending activities are insufficient.

5. Regulatory Risk: Avanza Bank Holding AB is subject to the laws and regulations of its country of operation as well as globally applicable standards such as Basel III, which can add costs and overhead. It is also vulnerable to changing governmental regulations, which can affect its ability to operate.