Chapter 1, Problem 12CSQ

Program Plan Intro

Deutsche Bank:

• Deutsche Bank AG was founded in 1870, it has 2,425 branches worldwide.
• Deutsche offers different type of financial products and services, such as retail and commercial banking, foreign exchange, and services for mergers and acquisitions and so on.
• Deutsche bank is one the world’s top financial companies and largest bank in Germany.
• Deutsche bank also plays a major role in German economy.
• Deutsche bank has a derivatives worth $64 trillion, the value of derivatives is the world’s largest portfolio.
• The contract is used to derive its value from the performance of underlying entity is referred as derivatives.

Explanation of Solution

Contributed problems by management, organization, and technology factors:

• Deutsche Bank encountered some problems based on management, organization, and technology which leads to stumble the bank.
• Management:
  • Deutsche Bank produced the incomplete and untimely credit default swap data, and failed to supervise the employees to swap the data reporting which charged by the Commodity Futures Trading Commission (CFTC).
  • They have lack of adequate business continuity and disaster recovery plan.
• Organization:
  • The CFTC complained Deutsche Bank to the reporting system has experienced a system outage when Deutsche Bank’s swap data have been reported...