Credit Suisse bolsters risk oversight to prevent future Greensill scandals
Credit Suisse is bolstering its internal controls to prevent future scandals in a bid to repair the damage inflicted on its reputation by the Greensill and Archegos affairs.
Switzerland’s second largest bank is adding two new risk experts to its non-executive board.
New chairman Antonio Horta-Osorio has made strengthening risk oversight his main priority after the bank lost over $5bn and $10bn from the collapse of the Archegos family office and Greensill Capital respectively.
Axel Lehmann, a former UBS executive, is to become chairman of the risk committee. Credit Suisse said he has a “wealth of experience in risk management”.
The bank has also tapped a former ING executive, Juan Colombas, who has previously been a member of the Dutch bank’s audit and risk committee.
In a statement, Horta-Osorio said: “With their deep experience in risk management and business leadership, and both with careers spanning approximately three decades in financial services, they will make an invaluable contribution as we shape the bank’s strategic realignment and enhance our culture of risk management and personal responsibility and accountability.”
The appointments come as a damning review launched by the bank to explore the reasons why the Archegos scandal occurred found that a lack of accountability and weak internal controls to monitor risk drove Credit Suisse’s losses related to the family office.