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Risk Committee
With the exception of liquidity risk which is covered by the Asset
Liability Committee, strategic and fundamental issues related to all
risk categories are discussed and decided on by the Risk Committee
(RC) in its capacity as a management and decision-making body with
responsibility for all areas. The role of the RC has no effect on the
final decision-making authority of the Management Board on matters
that cannot be delegated and on those related to the Minimum
Requirements for Risk Management (MaRisk).
The main issues addressed by the RC are:
– lending policies as well as policies and regulations for the
treatment of other risk-related issues (e.g. market risk,
operational risk, reputational risk)
– risk strategies
– presentation of industry portfolio reports and reports on current
market risk
– rating processes (implementation/amendment of processes,
validation reports) and models for risk measurement and control
– fundamental issues related to the credit organisation structure
– risk-related aspects of the credit process and processing standards
– decisions on new products and important product changes in
the lending business (including entry into new markets) unless
previously taken by the head of Strategic Risk Management
– country limits.
The RC is chaired by the Chief Risk Officer (CRO) and includes senior
managers from all divisions as well as the related back office units:
Market Risk, Credit Risk Control & Economic Capital, Senior Risk
Management CIB (SRM), Recovery Management (Restructuring/
Workout) and Credit RR F&SME Germany.
Asset Liability Committee
The Asset Liability Committee (ALCO) makes decisions at its monthly
meetings on the asset/liability management of HVB and sets guidelines
for HVB Group.
The committee pursues the following key goals:
– establishment of uniform asset/liability management methods for
HVB Group
– optimum utilisation of liquidity and capital resources
– coordination between the requirements of the divisions for financial
resources and the business strategy.
The ALCO is made up of the Chief Financial Officer (CFO) and CRO,
the Management Board members responsible for the Corporate &
Investment Banking division (CIB), Family & SME division (F&SME)
and Private Banking division (PB), and the heads of Regional Planning
& Controlling, Planning & Controlling, Accounting, Tax and Shareholdings,
Markets, Market Risk, Treasury and Finance.
Stress Testing Council
To provide management with additional analysis for bank management
purposes and to meet the stricter regulatory requirements
under the Internal Capital Adequacy Assessment Process (ICAAP),
HVB Group made significant improvements to the stress testing
process in December 2011. For this purpose, the Management
Board, as the body responsible for bank management, delegated
stress testing to the RC and the Stress Testing Council as a specialist
committee. The tasks of the Stress Testing Council include:
– coordination of all stress testing activities within HVB Group,
including the development of the stress testing methodology
– definition of stress scenarios encompassing all risk types,
including the validation of the underlying parameters
– analysis of stress testing results and their use to prepare
recommendations for management
– quarterly reports and the presentation of stress testing results in
the RC as well as the proposed measures derived from them.
This committee has representatives from the CIB, F&SME and PB
divisions, the risk control units, the CFO, the Board Spokesman (CEO)
and the Economic Research department.
HypoVereinsbank · 2011 Annual Report 45