08-16-2017, 08:46 PM
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CASE STUDY ON DEUTSCHE BANK MARKET RISK MANAGEMENT
Deutsche Bank is a leading global investment bank with a strong and profitable private clients reinforceing.
It provides the market risk for the management.
Managing Risks. Increasing the Company's Value .
Risk management is a productive factor in a company s value-added chain.
There are three aspects to a reliable risk management approach:
Create transparency on the scale of risk exposure
Knowledge on how to manage risk exposure
Implement this knowledge in your company.
Risk Management Services enables you to identify and manage all the risks your company is exposed to .
What the actuall case is??
The management of a large European industrial company felt that the existing risk policy and hedging program on an enterprise-wide level was not efficient due to independent departmental risk management practices .
Deutsche Bank is a leading global
Investment bank with a strong and
Profitable private clients fran reinforcing.
80,456 employees in 72 countries*
Unparalleled financial services throughout the world
A leader in Germony and Europe the bank is powerful and growing in North America ,Asia and key imerging markets.
The Corporate and Investment Bank Group Division is responsible for Deutsche Bank s capital markets business, comprising the ori gi na tion, sales and trading of capital markets.
Founded in Berlin in 1870 to support the internationalization of business and to promote and facilitate trade relations between Germany, other European countries, and overseas markets.
Awards
Deutsche Bank won a series of important awards, e.g. IFR "Bank of the Year" twice in three years .
Trade Finance
Deutsche Bank is acknowledged as a leading global trade bank with more than 130 years experience .
It helps importers and exporters find optimal solutions for their individual requirements.
Deutsche Bank Trade Finance offers :-
corporates and financial leading technology
online trading modules
and an extensive range of trade products.
and services across its global network - which spans 77 locations in 37 countries - to increase the efficiency of cross-border trading.
Risk Management Services
Trade is full of uncertainties and risks.
Only those who recognize all the risks,
can be successful over the long-term.
Deutsche Bank s (RMS) actively assists companies and public sector institutions in their risk management.
Capital Market Sales
Exploiting the opportunities on all markets
It connects the best of two worlds: -
the performance capability and expertise of our global corporation with personal advice directly on location.
It offers investment and loan optimization as well as risk management from a single team.
Market Risk Analysis for a European Industrial Company
Situation:
The management of a large European industrial company felt that the existing risk policy and hedging program on an enterprise-wide level was not efficient due to independent departmental risk management practices
EFFORTS
Our efforts followed three main objectives:
Merging the risk silos among Treasury, Sales and Procurement
Measuring the enterprise-wide risk exposure and revealing natural hedge effects
Developing a unique risk management policy and guideline framework
Approach:
We first needed to understand the departments exposure structure and their current risk management activities. By means of interviews we first established an objective underlying cash flow forecast and financing model.
On the basis of this model we then generated various scenarios on the identified risk factors considering correlations. We computed the distribution of the company s finan-cial results which revealed the company s risk position.
To assess the achievable hedging effects we integrated various analytically derived hedging strategies into the model and
tested their hedge effectiveness, taking into con-sideration inter-departmental netting and natural hedge effects.
This helped us formulate the right risk management policy including the definition of dynamic hedge ratios and enabled us to estimate the degree of the achievable reduction of potential costs (=risks).
Result:
Following this analysis we could demonstrate possibilities of real and substantial sav-ings for our client by implementing a new risk management policy and guideline frame-work.
Financial Supply Chain Management
Deutsche Bank's Financial Supply Chain Management Solutions help you to:-
Maintain your competitive edge through more effective working capital management,
improved operating efficiencies,
increased quality of information and
maintaining sound working relationships with your trading partners.
Innovative products and services facilitate the smooth flow of commercial and financial information throughout your organization's financial supply chain.