Gazprombank (Switzerland) Ltd is exposed to credit risk due to its defined business model. Loans is the largest and most obvious source of credit risk for the Bank. Risk Management of the Bank makes sure that credit risk exposure stays within acceptable parameters and manages the risk on both portfolio and individual basis. The Bank has a thorough understanding of the borrowers as well as the purpose and structure of loans and the source of repayments. The Bank maintains an appropriate credit administration, measurement and monitoring process of credit risk. The Bank takes into account potential future changes in economic conditions when assessing individual credits and the credit portfolio and makes an assessment of credit exposure under stressful conditions.