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!
BTRM Designer and Founder
Moorad Choudhry is an independent non-executive director at Recognise Bank Limited in London, a non-executive director at the Loughborough Building Society and a non-executive director at Wandle Housing Association. He is Honorary Professor at University of Kent Business School. He was latterly Treasurer, Corporate Banking Division at The Royal Bank of Scotland. He began his career at the London Stock Exchange in 1989.
Moorad is a Fellow of the Chartered Institute for Securities & Investment, a Fellow of the London Institute of Banking and Finance, a Fellow of the Global Association of Risk Professionals, a Fellow of the Institute of Directors and a Freeman of The Worshipful Company of International Bankers. He is author of The Principles of Banking (John Wiley & Sons 2012).
Moorad was born in Bangladesh and lives in Surrey, England. He was educated at Claremont Fan Court school, the University of Westminster and the University of Reading. He obtained his MBA from Henley Business School and his PhD from Birkbeck, University of London.
Michael is a Managing Director at Credit Suisse with over 20 years risk management experience, working both as a practitioner and in academia. Since 2014, he is working as the Global Head of Treasury & Liquidity Risk at Credit Suisse. Before that he worked for eight years at RBS, inter alia as the Group Treasury CRO and Global Head of Market Risk, Wealth Management Division. Michael holds a Ph.D. in Business Administration from the University of Lueneburg, Germany. He is an honorary professor at Harz University, Germany and a visiting lecturer at Swiss Federal Institute of Technology, Zurich. He has (co-)authored more than 50 publications covering Treasury, Risk and Change Management topics.