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CONFIDENTIAL Tobias Guldimann, Chief Risk Officer April 14, 2011 The role of CRO at Credit Suisse
CONFIDENTIAL
Produced by: Name SurnameDate: 03.11.2005 Slide 1
Tobias Guldimann, Chief Risk OfficerApril 14, 2011
The role of CRO at Credit Suisse
April 14, 2011 Slide 2
The CRO role – general expectations
Right mix between integration and independence– A seat at the Executive Board, direct reporting line to CEO
– Independent from the Front Office
Large amount of credibility– Practical business experience
– Operational and management expertise
Not afraid to voice own opinion and to stick to it– Keeps balance between profitability versus risk appetite
– Recognizes potential reputational risks and manages them
April 14, 2011 Slide 3
Risk governance
Chief Executive OfficerCredit Suisse Executive Board
Credit Suisse Board of DirectorsAudit Committee Risk Committee
Capital Allocation and Risk Management Committee (CARMC)
Market & Credit RisksALM, Capital, Funding
& LiquidityOpRisk & Internal
Controls
IB RMC PB RMC AM RMC
Bank
Divisions
Risk Processes & Standards Committee
Reputational Risk & Sustainability Committee
Credit Portfolio & Provisions Review
Committee
April 14, 2011 Slide 4
Risk Organization
SRM IB
MarketRisk
Management
Strategic Risk ManagementSRM
Bank Operational Risk Oversight
BORO
CH
Credit Risk ManagementCRM
Risk Analysis and Reporting
RAR
EMEA APAC Amer
Divisional Regional Global
SRM PB
Treasury
SRM AM
MACS1), AI2),
986278 373
25
Number of headcounts; total CRO Division: 1,662
1) Multi Asset Class Solutions2) Alternative Investments
April 14, 2011 Slide 5
How Risk Organisation works – Japan example
Safety of our employees
– Family relocation programme
Business continuity assessment
– Office relocation plan (Osaka)
– Remote access to IT systems provided
Control of exposure
– Liquidity risk due to operational shutdown of counterparties
– Standard check of risks, i.e. credit and market exposures
– Hidden risks, i.e. PB Lombard exposure or AM real estate investments
April 14, 2011 Slide 6
Elements of success for CS in risk management (1/2)
Not only a question of sophisticated models and tools; it’s about the right mix of people and the governance
– Strong involvement of the BoD and ExB in risk process
– Balanced mix of members in the bank’s risk management committees
– Clear responsibility / accountability: each risk has an owner
– Concept of 3 lines of defense1st line: Front office is ultimate risk (P&L) owner
2nd line: Independent risk organization
3rd line: Internal and external audit
April 14, 2011 Slide 7
Elements of success for CS in risk management (2/2)
Intensive interaction between the ExB, BoD and Risk Committee
– Detailed and honest discussion of individual risk positions at the BoD RC
– Swift, consequent action on assets which were identified as exit positions
Institutionalized skepticism
– Know your risks, know your numbers
– Business experience is key
– If you don’t know, better don’t make any assumptions
April 14, 2011 Slide 8
Key organisational priorities
Best-in-class risk management organisation
Risk infrastructure is a high priority
Be ahead of regulators, not led by regulators
April 14, 2011 Slide 9
Key regulatory topics
Biggest risk today is probably regulatory risk
Basel III is possible if implemented globally
Contingent capital belongs to the future of banking
April 14, 2011 Slide 10
Conclusion
„Understand what you are doing“
...if you are not sure, assume that you don‘t!
April 14, 2011 Slide 11
Questions & Answers
April 14, 2011 Slide 12
