Risk management has been at the heart of Credit Suisse's recent travails, and now a new position has been created at the investment bank which a former trader will take up.
Credit Suisse has created a new risk management department three months after it lost billions in the collapse of hedge fund Archegos Capital.
News agencies Friday quoted an internal memo as saying it is called «Counterparty Market Risk».
Early Warning System
This means that the effects of market movements on clients’ trading positions will be monitored.
The absence of this type of early-warning system meant for Credit Suisse that Archegos was able to build up an equities position using swaps with too much leverage. A market move in March meant Archegos lost $20 billion and the bank 5 billion Swiss francs ($5.4 billion).
Former Trader
The new department will be headed by London-based Amélie Perrier who joined Credit Suisse in 2016 and was until now global head of equity market risk. Previously she was a trader.
At Citibank, where she worked for 10 years, she traded exotic equity derivatives, according to her LinkedIn profile. She moved into compliance at ANZ Bank in 2015 before joining Credit Suisse as head of equity market risk, Asia.
