Deutsche Bank is exposed to a wide range of risks, such as credit losses, volatility in market prices, operational failures, liquidity shortages, and regulatory and legal matters. It is the responsibility of Risk to identify, aggregate, manage and mitigate these risks. Risk comprises:
The Chief Operating Office (COO) provides the backbone infrastructure and general management across the division. The COO function oversees all IT and operational initiatives and budgets, and provides support to the Chief Risk Officer to ensure Risk delivers against its quarterly and annual targets.
Compliance advances lawful and ethical business conduct to maintain Deutsche Bank's integrity and reputation as the leading provider of financial solutions. It prevents and detects violations of law through identifying and managing financial services regulatory risk.
Credit Risk Management (CRM) is the independent credit approval and monitoring function for the whole of Deutsche Bank. Using expert knowledge, CRM provides structuring advice and credit approval on transactions; manages the credit exposure of Deutsche Bank’s derivative and foreign exchange portfolios; actively ensures the recovery of impaired loans; and performs in-depth analysis of industry, sovereign and settlement risk.
Government & Regulatory Affairs helps manage regulatory policy risk. It facilitates Deutsche Bank's communication with regulators and external policymakers concerning regulatory change proposals, and provides information across the Bank on such proposals and other regulatory issues.
Legal helps protect Deutsche Bank’s reputation by providing services of the highest professional standards to: facilitate the transactions of Deutsche Bank by giving proactive, business orientated and creative advice; manage legal risk in order to make transactions viable and safe; and protect the integrity and reputation of Deutsche Bank.
The focus of Market Risk Management (MRM) is on encouraging risk to be taken where it is most optimal given the rewards and capital consumption. MRM has a strong focus on the activity on the dealing floors and works closely with traders and senior managers to perform the complex risk analyses that are crucial to inform their business decisions.
Operational Risk Management (ORM) and Risk Analytics & Instruments (RAI) develop and maintain key risk measurement and management methods for Deutsche Bank. Threats as diverse as litigation losses, IT system failures, fraud and even natural disasters fall within the remit of ORM, which provides the framework to ensure consistent remediation or acceptance of these risks throughout Deutsche Bank. RAI develops and implements the internal and regulatory risk measurement methodologies for market, credit, and operational risk and derivatives exposure in order to support accurate management of Deutsche Bank’s risk and capital allocation.
Treasury is responsible for the capital, liquidity and funding of Deutsche Bank globally, regionally and locally. Treasury works closely with all Business divisions and infrastructure groups to ensure financial resources are available and adequately geared to Deutsche Bank’s strategic goals.
Risk has made a significant contribution to Deutsche Bank's history of success, including:
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