Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business.

Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Instead, this does once again call into question the competency of Deutsche Bank’s Risk Management Thankfully for Deutsche Bank’s part, no financial loss will be incurred following the 28.0 billion snafu.

Understanding Liquidity and Market Liquidity.

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We have rigorously reviewed the reasons why this error occurred and taken steps to prevent its recurrence.” The error was identified within a matter of minutes, and then rectified. This led the lender to release a statement explaining the circumstances: “This was an operational error in the movement of collateral between Deutsche Bank’s principal accounts and Deutsche Bank‘s Eurex account. In the latest instance back in March 2018, an ‘operational error’ was the culprit for the bank’s part. No financial loss to Deutsche Bank but questions remain

In this particular instance, the junior member of Deutsche Bank’s FX sales team mistakenly processed a trade to a hedge fund client that utilized a gross figure rather than a net value – what this amounted to was a number far more than its original value, culminating in a trade of $6.0 billion. Back in 2015, a junior trader at the lender accidentally sent $6.0 billion in error. The error once again calls into question Deutsche Bank’s operational prowess and competency.

Risk engine deutsche bank