SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Item 11: Quantitative and Qualitative Disclosures about Credit, Market and Other Risk 176
warning signals returned by the KRIs. We capture and monitor key operational risk indicators in our tool
“db-Score”.
— In our bottom-up Risk and Control Self Assessment (“RCSA”) process, which is conducted at least annually,
areas with high risk potential are highlighted and risk mitigating measures to resolve issue are identified. In
general, RCSAs are performed in our tool “db-SAT”. On a regular basis we conduct country risk workshops
aiming to evaluate risks specific to countries and local legal entities we are operating in and take appropriate
risk mitigating actions.
— We conduct scenario analysis to amend internal and external loss information and derive actions from them.
We also conduct stress testing on a regular basis to analyze the impact of extreme situations on our capital
and the profit-and-loss account.
— Regular operational risk profile reports at Group level for our business divisions, the countries we are operating
in and our infrastructure functions are reviewed and discussed with the department’s senior management.
The regular performance of the risk profile reviews enables us to early detect changes to the units risk
profile as well as risk concentrations across the Group and to take corrective actions.
— We assess the impact of changes to the Group’s risk profile as a result of new products, outsourcings and
acquisitions.
— Within our tracking tool “db-Track” we monitor risk mitigating measures identified via these techniques for
resolution.
— Due to the heterogeneous nature of operational risks in certain cases operational risks cannot be fully mitigated.
In such cases operational risks are mitigated following the “as low as reasonably possible” principle
by balancing the cost of mitigation with the benefits thereof and formally accepting the residual risk.
— We perform top risk analyses in which the results of the aforementioned activities are considered. The top
risk analyses mainly contribute into the annual operational risk management strategy and planning process.
Besides the operational risk management strategic and tactical planning we define capital and expected
loss targets which are monitored on a regular basis within the quarterly forecasting process.
Measuring Our Operational Risks
In 2010 we have integrated into our operational risk management processes Sal. Oppenheim (except for those
parts which are in the process of being sold) and the commercial banking activities in the Netherlands acquired
from ABN AMRO as well as Dresdner Bank’s global Agency Securities Lending business. Although Postbank
manages its own operational risk, Postbank has also already been integrated into our economic capital calculation
on a basis consistent with Deutsche Bank methodology. Limitations in data availability, however, may lead to
portfolio effects that are not fully estimated and thereby resulting in over- or underestimation. The table below
shows the economic capital usages for operational risk of our business segments for the periods specified.
in € m. Dec 31, 2010 Dec 31, 2009
Economic capital usage (for operational risk)
CIB 2,735 2,822
PCAM 939 654
CI 8 17
Total 3,682 3,493
Economic capital usage for operational risk increased by € 189 million, or 5 %, to € 3.7 billion as of December 31,
2010. The higher economic capital usage driven by acquisitions (Postbank, BHF-BANK, parts of the commercial
banking activities in the Netherlands acquired from ABN AMRO and Sal. Oppenheim) was only partially offset
by lower loss frequencies due to proactive operational risk management.