Since the “old days,” front-end, revenue-generating positions have been separated from risk-controlling functions, giving individual bankers an incentive to take on risk to increase sales, Achleitner said at a debt conference in Berlin following the annual meeting of the International Capital Market Association.
“Everybody in this room is a risk manager,” Achleitner said. “In every single transaction you engage in, you’re not just responsible for the revenue, you’re responsible for the risk.”
Banks are looking to curb risky behavior of employees as they face record fines around the world. Global fines for rate-rigging alone reached about $6 billion in December, when European Union antitrust regulators levied a record 1.7 billion euros ($2.3 billion) in penalties.
Deutsche Bank, Europe’s largest investment bank, regularly advises staff on compliance issues and recently released a video condemning boastful and vulgar behavior.
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