Managing International Risk - Scotiabank · 2011-11-22 · Managing International Risk Brian Porter...
Transcript of Managing International Risk - Scotiabank · 2011-11-22 · Managing International Risk Brian Porter...
Managing International Risk Brian PorterEVP and Chief Risk Officer
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Central Risk Framework and Strong Credit Culture
ReputationalRisk
Risk Policy
Senior Credit
Market Risk
Senior Executive Committees
Executive &Risk Committee
Board
Global Risk Management (GRM) Officer Limits
Local Banking Limits
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0.0%
0.1%
0.2%
0.3%
0.4%
2004 2005 2006 2007
International Loan Loss Experience(% of Loans and BAs)
Stable Loss Experience
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International Business Enhances Portfolio Diversification
Loans and Acceptances Outside of Canada
Q4/1999 Q4/2006
Europe U.S. Mexico/Latin America Caribbean Other
16%
45%9%
18%
12% 14%
24%
30%
20%
12%
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Risk Framework Tailored for International
Centralized Local
Market Risk
Liquidity Risk for Major Currencies
Credit Risk
Asset Liability
Operational
Interest Rate
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Experience
Deep expertisein specific regions
500 GRM employeeswith 15+ years of
experience
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Industry Specialization
InfrastructureInfrastructure
PowerPowerTelecomTelecom Financial ServicesFinancial Services
Real Estate DevelopmentReal Estate Development MiningMining
EnergyEnergy
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Effective Processes
Country Risk Framework
Standardized RatingMethodology
Country RiskRatings
Monitoring and Reporting
CountryLimits
Regional and CountryDiversification
Centralized Country Rating Team
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Effective Deployment of People
Increased cross-training between GRM & regions
Increased GRM travel to regions
Increased GRM resources
Toronto
Mexico City
Lima
Bangkok
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GRM Partners with the Business
Active in acquisitions and due diligence
Partners in integration
Business plan input
Endorsement of Consumer Finance strategy
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A Sound Balance of Key Elements
Strong central framework
Right local balance
Right people and experience
Effective processes
GRM & International partnership
Sound balance between risk,
return and growth
Effective risk management for
International