Own funds and capital base

The following information is disclosed quarterly in accordance with the Swedish Financial Supervisory Authority's regulations (FFFS 2014:12) on supervisory requirements and capital buffers, and Regulation (EU) No 575/2013 of the European Parliament and of the Council.

Share capitalSEK 1,340,000
Reserve fundSEK 0
Shareholder contributionsSEK 13,970,000
Share premium reserveSEK 4,863,590
Retained earningsSEK −2,306,509
Deduction for intangible assetsSEK 0
Total capital baseSEK 17,867,081
Common Equity Tier 1 (CET1)SEK 17,867,081
Additional Tier 1 capitalSEK 0
Tier 2 capitalSEK 0
Total capital baseSEK 17,867,081

Capital requirements

Permanent minimum capital requirementSEK 7,587,000
25% of fixed overheadsSEK 3,305,565
K-factor requirementSEK 3,167,844
Capital base requirementSEK 7,587,000
CET1 Capital Ratio
Total capital base as a percentage of capital base requirement
235.5%

Risk management

The Company's operations are exposed to various types of risk, and risk management is therefore a central part of the business. Alnair strives to ensure that a strong risk awareness permeates all parts of its operations, and maintains a system of policies and procedures to identify, measure, manage, and monitor all material risks to which the business is exposed, including control functions at multiple levels.

The Company's risk management framework is documented in an internal regulatory framework that is reviewed annually or as required. The Board and management take an active role in developing risk management guidelines. All changes and additions to Board-approved governance documents are always related to current and future capital requirements. An internal capital adequacy assessment process has also been adopted, setting out the methodology to be used for evaluating capital requirements.

Risk governance — three lines of defence

I
First line of defence
Day-to-day risk management carried out by all employees of the Company. Every member of staff is responsible for contributing to a strong risk culture and maintaining awareness of risk management in their daily work.
II
Second line of defence
The risk management function. The scope of responsibilities, duties, and reporting procedures of this control function are formalised in Board-approved governance documents.
III
Third line of defence
The Company's internal audit function, outsourced to Force Advokatbyrå AB, which independently reviews risk management in both the first and second lines of defence and reports directly to the Board of Directors.