Credit risk

Credit risk is the risk run by PNO Media that the other party fails to fulfil its obligations. The main credit risks for us are the risks attached to investments in fixed-interest values and derivates, to the completion of securities transactions, the lending of securities and to the collection of pension contributions from the affiliated organisations.

PNO Media controls the credit risk attached to investments in fixed-interest values by monitoring compliance with the standards for distribution of the portfolio across geographical areas and types of (individual) debtors. In the event of derivatives transactions, we limit the credit risk by working with standard agreements, assessing the creditworthiness of the other party, distributing the transaction volume across multiple other parties and by demanding security. The credit risk in relation to the completion of securities transactions is controlled by the fund by solely investing in markets where a sufficiently reliable clearing and settlement system is in place. When lending securities, PNO Media controls the credit risk by demanding security. We control the credit risk attached to the collection of pension contributions from participating organisations by introducing procedures for monitoring and collecting outstanding debts. In addition, the fund uses pension agreements to lay down arrangements in relation to the settlement of pension contributions. In general, advances on the pension contribution owed are settled as a lump sum payment at the beginning of the year.

Credit risk is the risk run by PNO Media that the other party fails to fulfil its obligations. The main credit risks for us are the risks attached to investments in fixed-interest values and derivates, to the completion of securities transactions, the lending of securities and to the collection of pension contributions from the affiliated organisations.

PNO Media controls the credit risk attached to investments in fixed-interest values by monitoring compliance with the standards for distribution of the portfolio across geographical areas and types of (individual) debtors. In the event of derivatives transactions, we limit the credit risk by working with standard agreements, assessing the creditworthiness of the other party, distributing the transaction volume across multiple other parties and by demanding security. The credit risk in relation to the completion of securities transactions is controlled by the fund by solely investing in markets where a sufficiently reliable clearing and settlement system is in place. When lending securities, PNO Media controls the credit risk by demanding security. We control the credit risk attached to the collection of pension contributions from participating organisations by introducing procedures for monitoring and collecting outstanding debts. In addition, the fund uses pension agreements to lay down arrangements in relation to the settlement of pension contributions. In general, advances on the pension contribution owed are settled as a lump sum payment at the beginning of the year.