Market Risk Management
“We aim to maximise the efficient use of resources within risk appetite / framework defined by the Board.”
BU Market Risk Management (MRM) is responsible for the market risk management of the trading portfolios and the banking book portfolios containing interest rate risks. It also measures and monitors the counterparty default risks of WestLB’s trading products and investment risks and of other risk categories not covered by other risk units. Their primary task is to assist the trading units in generating sustainable profits with a view to strengthening the Bank’s equity capital. They are also in charge of issues across different risk categories such as risk aspects in Bank-wide management.
MRM’s main tasks are:
- Establishment of risk principles that comply with international standards and the evolving requirements of the trading/business units
- Identification of risks through continuous monitoring of all portfolios and especially in new and complex transactions and business segments
- Quantification and measurement of risks. The models and methods used for this purpose are developed, validated and approved independently
- Efficient and meaningful risk and valuation reporting for the trading units, management tiers and relevant bodies of the Bank as well as weekly and monthly reports on the current risk situation and development of the Bank as a whole
- Implementation of risk control processes that are consistent with the principles of risk management and risk monitoring and ensure compliance with our risk policies, limits and regulatory requirements
- Effective and active risk management to support the trading units’ management and control activities.