059 RISK REPORT GROUP MANAGEMENT REPORT Chap. 2 which in addition to the Board of Management of AMB Generali and the Group Risk Manager also comprise the persons in charge of various operational areas of the holding company, the risk situation of the entire AMB Generali Group is assessed and monitored on the basis of the findings of the meetings of the specific segment RMCs. Group-wide measures for controlling risks at Group level are discussed and decided, if appropriate. The Group's internal audit department as a supe- rior body independent of processes regularly verifies the efficiency of the risk-management system, gives advice with regard to enhancing the system and docu- ments the audit results for the Boards of Management of the Group companies. The risk-management system within the AMB Generali Group The risk-management system of the AMB Generali Group follows the successive risk-manage- ment steps which are common practice in the market (see graph "Risk-management process" on p. 60). Risk identification The first step within the scope of the risk-man- agement system consists of the identification of all risks which could jeopardize the existence of the Group or hinder the Group in reaching its business targets. Within a risk inventory process taking place at least once a year in the Group companies and in AMB Generali, all risks are comprehensively and systemati- cally registered in a risk list and thereafter aggregated into a Group-wide risk list. The Company Risk Man- ager is to be informed of any new risks occurring in the course of the year. Following coordination with the Group Risk Manager, these risks are included in the risk list as appropriate. Classes and types of risks Investment risks Investment risks are composed of market, cur- rency and concentration risks and describe the danger of losses which may be the result of adverse changes of market prices or of factors influencing the price ­ such as changes of interest rates, share prices or cur- rency fluctuations ­ or due to an insufficient diversifica- tion in the portfolio. Organization of risk management in the AMB Generali Group AUDITBYGROUPINTERNALAUDITDEPARTMENT AMB Generali Board of Management Group RMC Risk management holding company/Group Risk conference of Group companies/RMC Risk management Group companies RMC Life//health RMC Bank RMC P&C The organizational framework structure of the risk-management system comprises the members of the Board of Management, the persons in charge of all operational divi- sions concerned, the risk managers of the individual Group com- panies, the Group Risk Manager and the inter- nal audit department of the Group.