Occasional Interview Series: Covid-19 stress event and bank risk management: Lessons learned with Michael Eichhorn


BTRM Video Interview Series #4, 6th January 2021 Prof. Dr. Michael Eichhorn, Faculty BTRM

We're very pleased to bring you this short but spot-on conversation with Michael Eichhorn, who is on the BTRM Faculty as well as CRO of Credit Suisse Deutschland AG. It's 28 minutes long but it's worth listening to every minute, Michael has some excellent lessons learned and recommendations for any bank's Asset-Liability Committee (ALCO) and Board...we discussed pro-cyclicality in liquidity risk, the best approach for managing liquidity whether top-down or bottom-up, what level of granularity the risk reporting should be at, amongst other topics, and the piece de resistance right at the end: as we're unable to predict future stress events, adopting a "flight simulator" approach for the ALCO will result in a bank that is better suited to managing future stress. Real practical insight, no academics. This was an absolute gem of a chat with a market professional who is at the very top of his game. Enjoy!