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Credit RR F&SME Germany
– Credit RR F&SME Germany handles the lending decisions and processing
for the risk-bearing lending business of the F&SME division
where the approval authority does not rest with that division. The regional
credit teams prepare credit requests and make lending decisions
for credit exposures with an approval limit of up to €5 million,
if necessary with the involvement of other approval authorities. For
exposures with an approval limit above €5 million, the decision is
made by SRM as the responsible approval authority.
Planning, Controlling and Service Functions
– The Planning, Controlling and Service Functions department pools
the reporting on risk provisions (including analysis, projections
and posting), data management for the restructuring and workout
portfolio and the responsibility for managing the cover funds for
Pfandbriefs.
Restructuring
– The Restructuring unit is responsible for restructuring activities with
the goal of minimising the risk of losses to the Bank and returning
exposures to the divisional credit processes. Depending on the
extent to which restructuring is deemed possible and worthwhile,
service provided to customers includes support with the continual
improvement of their economic and financial situation.
Workout Services
– The Workout Services unit (part of the Global Banking Services
division) is responsible for processing all loans for which the
measures taken during the restructuring phase were not successful.
In doing so, the most important actions are to liquidate collateral
under the best-possible terms, assert our claims in insolvency
proceedings and initiate any appropriate legal action against the
borrower.
In addition, Workout Services manages all loans subject to legal
challenges related to real estate finance, derivatives and the financing
of fund shares, and performs after-sales management of
the true sales portfolios.
Risk Asia & Pacific Rim
– A separate department, Risk Asia & Pacific Rim, pools the SRM,
risk control and restructuring functions for Asia.
In compliance with the MaRisk rules issued for banks by the German
Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienst
leistungsaufsicht – BaFin), the CRO department submits risk
reports to the Audit Committee of the Supervisory Board on a quarterly
basis. In addition, essential risk-related information is forwarded
without delay to the Audit Committee. The business strategy set
out by the Management Board, a risk strategy consistent with that
business strategy and any necessary adjustments to those strategies
are submitted to the Supervisory Board for acknowledgement and
discussed with it.
Chief Financial Officer
An area in the Chief Financial Officer organisation that plays a major
role in risk monitoring is Asset Liability Management, which is described
in this section. Other such areas are the Finance department
and the Planning and Controlling department, which are described
in detail in the next section, “Essential characteristics of the internal
control and risk management systems with regard to the financial
reporting process”.
Asset Liability Management
The Finance department controls Asset Liability Management by
managing short-term and long-term liquidity within HVB Group (HVB,
UniCredit Luxembourg, DAB, Bankhaus Neelmeyer and UC Leasing).
Its main objectives are to ensure that the Bank has adequate liquidity
at all times and to optimise funding costs. Asset Liability Management
monitors trends and happenings on the money and capital markets,
and liquidity and refinancing requirements. As part of liquidity risk
management, for instance, it defines underlying conditions, limits and
processes, specifies responsibilities and oversees funding activities
together with the front office units. The internal cost of funds for
the lending and deposit-taking business is continually reviewed for
appropriateness and regularly adjusted to reflect the market situation.
The measures implemented in connection with these functions serve
to support HVB Group’s return targets.
Audit Management
The Audit Management department is a process-independent instrument
of the Management Board and is required to report directly to it.
According to its internal regulations, the Management Board bears
the overall responsibility for setting up the Audit Management
department and ensuring that it functions properly. In 2011, operational
responsibility for the audit function was assigned to the Board
Spokesman.
HypoVereinsbank · 2011 Annual Report 47