The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Awards for Excellence 2007: Best Risk Management House

HSBC is finding increasingly sophisticated ways to fulfil the traditional role of the risk manager – mitigating risk rather than seeking it out.

Awards for Excellence 


Also shortlisted in this category:
Société Générale
Deutsche Bank

HSBC


The head of risk management sales at a large European bank asks Euromoney to think of his customers as gamblers sitting in a casino. It’s been a long night and those few who have been losing are very cautious with what little money they have left. But it’s been a great night for many and these lucky winners are keen to extend their good fortune through increasingly extravagant bets. That’s how the risk management business has changed during the past few years of rising financial asset prices and declining volatility. Derivatives teams that started life devising ways for customers to lay off or reduce unwanted risks – such as currency exposure arising from investments in overseas bond markets, or low-rate foreign currency liabilities – are spending more time devising leveraged derivative instruments on new correlations to increase potential pay-offs for hedge funds and other specialist investors while getting risk off their own banks’ prop desks.

The winner of this year’s best risk management house award, HSBC, has done some of this, but has devoted much more of its efforts to the traditional role of helping corporate and institutional investor clients identify and mitigate risks that they do not want or that they are not being rewarded for taking.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree