2005 Annual Report Julius Baer Holding Ltd. - GAM Holding AG

Notes
are documented in the Emergency Management Team
Plan (EMTP). As a result of the assessment the EMT
can decide to activate the Business Recovery Plan
(BRP). The BRP enables the business to perform vital
activities at the designated recovery site within the
required time. Tailor-made BRPs are established in all
branches of the Julius Baer Group.
Standards are in place for operational and physical
security to enforce the required protection of staff,
information and valuables.
The department Group Risk Management Operational
Risk is supported by the risk management units of
the divisions. These units consist of specially trained
personnel with line experience who serve as operational
risk managers within the divisions and thus
assist the division management in all matters related
to operational risks. The department Group Operational
Risk Management reports to the CRO.
6.2. Legal risks and compliance
The terms legal risks and compliance refer to those
risks that stem from the legal and regulatory dimension
of the business environment. The main risks in
this regard are liability and default risks, regulatory
risks as well as conduct risks.
The Julius Baer Group fully respects the given legal
and regulatory framework within which it operates.
Its conduct adheres to high ethical standards and
good market practices. Personal sense of responsibility
on the part of management and staff as well as
fairness in business dealings is central to the Group’s
business philosophy. Liability and default risks are
consistently and carefully evaluated, taking into
account the associated opportunities and dangers. In
the interest of clients, shareholders and the other
stakeholder groups, franchise protection ultimately
receives top priority.
92 JULIUS BAER GROUP
The corresponding controlling tasks are carried out
Group-wide by Legal & Compliance Functions. Legal
Functions are responsible for liability and default
risks under civil law, criminal law and administrative
law, whereas Compliance Functions are responsible
for regulatory risks and conduct risks concerning
business ethics and corporate integrity.
The organizational units Legal & Compliance Private
Banking and Legal & Compliance Asset Management
run the divisional legal controlling as well as engineering
centers. The legal engineering centers support
effective legal risk and compliance management
by directly contributing to the development and management
of products and services with specific and
partially standardized legal architecture and promote
sound selling policies as well as state of the art
structures and procedures. They all report into the
division management and to the Group General Counsel.
The organizational units Legal & Compliance on a
Corporate Center level take care of Group corporate
and regulatory matters and ensure appropriate
Group-wide legal risk controlling and governance.
They are independent from the frontline management
and report to the Group General Counsel.
6.3. Personnel risks
The major personnel risks according to our risk landscape
lie with the dependency on highly qualified
staff and the availability of the necessary management
and leadership capacities. Based on this risk
assessment and given the unchanged demand for
qualified staff, our efforts clearly focus on attracting
and retaining professional staff, paying special attention
to the leadership competencies of our management,
the attractiveness of our employment conditions,
and targeted training and development
measures.