Compliance & Risk Management
For the protection of our company, our employees and our customers
Sustainability and ESG are widely used terms. Sustainability describes a forward-looking perspective in which environmental, social and economic aspects are considered over the long term in order to preserve the foundations of life and business for future generations. In the corporate and financial sectors in particular, these aspects are commonly summarized under the term ESG (Environmental, Social and Governance). Sustainability is defined differently across regulatory, scientific, and economic contexts. Regulatory requirements, such as the EU Taxonomy or the EU Sustainable Finance Disclosure Regulation, provide a framework for individual sustainability aspects while leaving room for company-specific specification.
The specific meaning of sustainability for Commerzbank AG’s products, services, and business activities is set out in the ESG Framework. It defines the relevant criteria and distinguishes, in particular, between the Bank’s own business and external client investment and insurance business, including asset management and securities business (“third-party business”).
Compliance at Commerzbank
In view of regulatory requirements, Compliance monitors relevant developments and supports the appropriate management of identified risks in line with the Group’s risk appetite and strategic objectives.
Key areas include the prevention of money laundering and terrorist financing, compliance with sanctions and embargoes, capital markets compliance, and the prevention of fraud, bribery and corruption. In addition, Compliance considers human rights and environmental risks as part of relevant supply chain processes, in accordance with the principles set out in Commerzbank’s Human Rights Position.
Information Security & Data Protection
Protecting customer data and safeguarding banking secrecy as well as ensuring cyber security and resilience are of utmost importance in times of increasing digitalisation. They are the basic prerequisites for the satisfaction of our customers and for trust in a long-term business relationship. That is why these topics are a focus for us in terms of responsible banking.
Considering risks systematically
Effective risk management is based on identifying material risks and risk drivers, measuring and assessing them independently, and managing risk and return accordingly within the framework of the risk strategy.
Commerzbank defines risk as the danger of possible losses or lost profits due to internal or external factors. We generally distinguishes between quantifiable types of risk, which can typically be reflected in the financial statements or in capital requirements, and non-quantifiable risks such as reputational risk.