BEST PRACTICES AND PROBLEM SOLVING

1. Deutsche Bank-Risk Management Best Practices

2. Introduction
 Deutsche Bank is one of the pioneers in following Risk
Management Best Practices
 Dedicated Risk Management Advisory(RMA) helps in
defining Best Practices and Risk Management
methodologies to be followed by itself and adopted by
other financial institutions

3.  Risks faced by bank includes,
Operational risk-Failure, stoppage or inadequate
internal and external processes
Credit risk-Risk when the borrower defaults
Liquidity risk-Risk involving security that cannot be
traded easily
Market risk-Including equity, interest rate and
currency risk

4. Best Practices
1. Decision making using reliable and
independent data
 Companies should provide as well as gather
informed, accurate and independent data, utilized by
themselves for effective decision making.
 This helped Deutsche Bank(Japan) sustain during
the Fukushima disaster based on independently
gathered risk data instead of available inaccurate
information sources

5. 2. Business Continuity Management
 Implementation of Disaster Recovery program and
periodic testing of the program and strategies
 Data backup and recovery-Written procedures
clearly identifying the risks involved and process
implemented
 Secondary location and Alternate communication
between the several parties involved with the bank

6. 3. Effective fraud management through strong
AML and AFC standards
 Strict adherence to all the guidelines and policies
related to internal working as well as external
relationships with customers
 Proper controls and monitoring
 Periodic Testing of the controls

7. Problem Solving
 Scenario-