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Corporate Responsibility

Risk Assessment

The careful evaluation of transactions is an important prerequisite for identifying and controlling risks at an early stage. The appropriate consideration of ecological and social aspects is therefore an integral part of our internal risk assessment.

How Risks Are Assessed

A careful risk assessment process is followed for transactions that may harbor reputational risk involving ecological or human rights issues. This reputational risk assessment process includes an assessment by internal specialist units, such as the Public Policy - Sustainability Affairs unit in the case of environmental and social issues, and also by senior management. The type and purpose of the transaction, the identity of the potential client, and the regulatory, political and social environment are investigated. Where necessary, independant external experts are consulted.

The precisely defined Reputational Risk Review Process also requires an officer who is not involved in the business transaction to explicitly approve Credit Suisse's involvement in the transaction. If the procedure requires heightened scrutiny, the Reputational Risk Sustainability Committee is the highest instance in the bank-wide assessment process. The Committee also discusses relevant sustainability topics and is responsible for the bank's strategy in this area.

Reputational Risk Review Process

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Credit Suisse has continued to refine the tools it uses to examine sustainability-related risks and is training its employees in the correct usage of these instruments. In 2009 the bank implemented new policies governing transactions with clients that are active in the forestry industry and in mining to ensure that all relevant business activities meet high standards of sustainability. They were followed in 2010 by a policy on the oil and gas sector.

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