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## Maturities of the derivatives portfolio 

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*) Before netting 

Value-at-risk is only one of the instruments used to character- ize and control the risk profile of the Dresdner Bank Group. In addition, the bank also uses operational risk indicators and limits, which are specifically adapted to the risk situation of the trading units. Trading is controlled by setting value-at-risk and operational market risk limits. Current limit utilization is de- termined and monitored by Risk Controlling on a daily basis. Limit breaches are immediately indicated to the management concerned so that corrective action can be taken. 

## Derivatives business by market segment 

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Market risks in the trading portfolio: the risks from Dresdner Bank’s trading activities increased slightly compared to the pre- vious year. This is mainly due to the fact that positions for in- terest-bearing instruments were built up moderately. 

Market risks in the non-trading portfolio: this risk mainly comprises the risk of interest changes and is analyzed on the basis of sensitivity and value-at-risk indicators. As in the case of trading, the bank controls this risk by setting value-at-risk lim- its. At the end of 2003, the value-at-risk for interest rate risks in the banking portfolio of Dresdner Bank Group decreased slightly by 2 percent to 31.2 million euros. 

Currency risks at Dresdner Bank are limited by applying the fol- lowing principle: all loans and deposits in foreign currencies are refinanced or reinvested in the same currency with matching maturities. 

Liquidity risks As part of the Group liquidity policy, Treasury and Risk Controlling of Dresdner Bank established principles for liquidity management. This liquidity policy meets both regula- tory requirements and internal standards. The liquidity risk lim- its set include a reporting process for limit breaches and provi- sions for emergency planning. Liquidity control and liquidity risk management are tasks attended to by the treasury. 

Liquidity risk measurement is based on the liquidity man- agement system. This system models the maturities of all cash flows and draws up a scenario-based liquidity balance sheet, tak- ing into account available prime-rated securities. 

