Overall Risk Position

The table below shows our overall risk position at year-end 2007 and 2006 as measured by the
economic capital calculated for credit, market, business and operational risk; it does not include liquidity risk.

To determine our overall (nonregulatory) risk position, we generally consider diversification benefits across risk types except for business risk, which we aggregate by simple addition.

As of December 31, 2007, our economic capital usage totaled € 13.6 billion, which is € 1.9 billion, or 16%, above the € 11.7 billion economic capital usage as of December 31, 2006.

The € 1.2 billion, or 16%, increase in credit risk economic capital usage primarily reflects the volume growth in derivatives and in lending-related credit risk, primarily in our Corporate Banking & Securities corporate division.

Our economic capital usage for market risk increased by € 487 million, or 16%, to € 3.5 billion as of December 31, 2007. This increase was mainly driven by nontrading market risk, which increased by € 329 million, or 24%, primarily reflecting the increased risk of our alternative assets
portfolio. Trading market risk economic capital increased by € 158 million, or 10%, compared to December 31, 2006, due to the changes in the risk profile held.

Our economic capital usage for operational risk increased by € 651 million, or 20%, to € 4.0 billion as of December 31, 2007. The increase in operational risk economic capital is driven by two factors. One is due to methodology enhancements, in particular an improved modeling of the Qualitative Adjustment (“QA”). We estimate that the operational risk economic capital would have amounted to € 3.8 billion as of December 31, 2006, had we applied the new QA methodology. The second factor is an enhanced representation of our risk profile due to an extended time series of historic internal and external losses.

The diversification effect of the economic capital usage across credit, market and operational risk increased by € 493 million, or 23%, to € 2.7 billion as of December 31, 2007. This increase was driven by and is fully in line with the increased economic capital usages of the aforementioned risk types.

The table below shows the economic capital usage of our business segments as of December 31, 2007.

The allocation of economic capital may change to reflect refinements in our risk measurement methodology.