entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 52
Financial Report 2010 Risk Report
Risk and Capital Management
The wide variety of our businesses requires us to identify, measure, aggregate and manage our risks effectively,
and to allocate our capital among our businesses appropriately. We manage risk and capital through a framework
of principles, organizational structures as well as measurement and proactive monitoring processes that
are closely aligned with the activities of our group divisions. The importance of strong risk and capital management
and the continuous need to refine these practices became particularly evident during the financial market
crisis. While we continuously strive to improve our risk and capital management, we may be unable to anticipate
all market developments, in particular those of an extreme nature.
Risk and Capital Management Principles
The following key principles underpin our approach to risk and capital management:
— Our Management Board provides overall risk and capital management supervision over our consolidated
Group. Our Supervisory Board regularly monitors our risk and capital profile.
— We manage credit, market, liquidity, operational, business and reputational risks as well as our capital in a
coordinated manner at all relevant levels within our organization. This also holds true for complex products
which we typically manage within our framework established for trading exposures.
— The structure of our integrated Legal, Risk & Capital function is closely aligned with the structure of our
group divisions.
— The Legal, Risk & Capital function is independent of our group divisions.
Comparable risk management principles are in place at Postbank reflected in its own organizational setup.