BNP Paribass Case Study Report
POSITION OF THE RISK AND COMPLIANCE FUNCTIONS
Risk management is the key in the business of BNP Paribas. The group Risk Management department, which we call GRM from now in the paper, is responsible for measuring and controlling risks at Group level. It is dependent from the core businesses, lines and territories and reports directly to the Group executive Management. Under the authority of GRM, the Group Compliance GC Function monitors the operational risk and reputation risk.
GENERAL RESPONSIBILITIES OF THE RISK AND COMPLIANCE FUNCTIONS
GRM performs continue control over the group’s credit, market, liquidity and insurance risks. It must check the soundness and sustainability of the business plans and the overall alignment with the risk profile target that has been set by the executive management. This also includes …show more content…
One of the 4 commitments is “Being prepared to take risks, while ensuring close risk control”. They believe that right risk control is their responsibility and not only towards the clients but also towards the whole financial system.
BNP Paribas is able to balance risks and their consequences as soon as they materialize. The Group is organized and managed in such a way that difficulties raising in one area will not jeopardize the other activities.
Another management principle is “risk-aware Entrepreneurship”, which highlights the importance of the risk culture:
• Risk-aware entrepreneurship means being fully accountable and activing interdependently, cooperatively with other entities to serve the global interest of the Group and the clients. Also being constantly aware of the risks and empowering others to do the same is crucial (Paribas, 2014).
SPREADING THE RISK
Risk management is the key in the business of BNP Paribas. The group Risk Management department, which we call GRM from now in the paper, is responsible for measuring and controlling risks at Group level. It is dependent from the core businesses, lines and territories and reports directly to the Group executive Management. Under the authority of GRM, the Group Compliance GC Function monitors the operational risk and reputation risk.
GENERAL RESPONSIBILITIES OF THE RISK AND COMPLIANCE FUNCTIONS
GRM performs continue control over the group’s credit, market, liquidity and insurance risks. It must check the soundness and sustainability of the business plans and the overall alignment with the risk profile target that has been set by the executive management. This also includes …show more content…
One of the 4 commitments is “Being prepared to take risks, while ensuring close risk control”. They believe that right risk control is their responsibility and not only towards the clients but also towards the whole financial system.
BNP Paribas is able to balance risks and their consequences as soon as they materialize. The Group is organized and managed in such a way that difficulties raising in one area will not jeopardize the other activities.
Another management principle is “risk-aware Entrepreneurship”, which highlights the importance of the risk culture:
• Risk-aware entrepreneurship means being fully accountable and activing interdependently, cooperatively with other entities to serve the global interest of the Group and the clients. Also being constantly aware of the risks and empowering others to do the same is crucial (Paribas, 2014).
SPREADING THE RISK