Legal, Risk & Capital

Deutsche Bank is exposed to a wide range of risks, such as credit losses, volatility of market prices, operational failures, infrastructure outages, liquidity shortages, and regulatory and legal matters. It is the responsibility of Legal, Risk & Capital (LRC) to identify, aggregate, manage and mitigate these risks. LRC comprises:

Compliance

Failure to comply with regulations can cost a bank its business and its reputation. Compliance provides advice across Deutsche Bank on ethical conduct and helps identify regulatory solutions; safeguards Deutsche Bank’s integrity and reputation; and, in conjunction with the Business divisions, promotes a culture of compliance.

Corporate Security & Business Continuity

Corporate Security & Business Continuity (CSBC) protects Deutsche Bank’s people, infrastructure, processes and information. CSBC constantly assesses the global security situation and business-specific risks.

Credit Risk Management

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.

Legal

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.

Market Risk Management

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 and Risk Analytics & Instruments

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

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.

Chief Operating Office

The LRC 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 LRC delivers against its quarterly and annual targets.

Awards

Legal, Risk & Capital has made a significant contribution to Deutsche Bank's history of success, including:

• Most Effective Recovery of the Year 2009 (Business Continuity Awards)
• Outstanding Bank for Operational Risk Management (OpRisk & Compliance “10 years of excellence” awards)
• EMEA In-House Legal Team of the Year 2009 (International Financial Law Review)
• Europe Deal of the Year 2008 (International Financial Law Review)
• A Best Borrower for 2008 (Euromoney)