Deutsche Bank

Corporate Responsibility
Report 2016

Strengthening our corporate culture

  • Strengthened accountability for fostering cultural change
  • Developed a leadership capability model
  • Reputational risk and risk appetite included in awareness training

A sustainable performance culture remains essential for our long-term success and positive stakeholder relationships. We have long been guided by values and, with the announcement of our strategy in 2015, have reconfirmed our commitment to cultural change. We seek a culture that aligns risk and return, attracts and develops highly capable individuals, fosters teamwork and partnership, and is sensitive to the society in which it operates. A sustainable performance culture will become an increasingly important factor in positioning ourselves as a leading global bank.

Guiding standards of culture

Ownership and accountability for driving a culture that reflects appropriate conduct and exceptional integrity lies with the respective business divisions and infrastructure functions, with each consistently applying four central guiding standards of culture: active and visible leadership, empowering and effective management, productive people practices that inspire our employees, and responsible and sustainable business practices. These guiding standards, which are aligned with the aspirations of the bank’s Strategy 2020 and its core principles of positive conduct and integrity, are endorsed by the Management Board.

The Leadership Capability Model

Leadership is critical to ensuring that the desired cultural outcomes are achieved. Our expectations of our leaders are defined in the Leadership Capability Model, which outlines the capabilities we see as vital to leading people and creating a strong performance culture and business in the long term. The Model is based on Deutsche Bank’s unique needs and is backed by research into the knowledge and skills required for effective leadership. It gives us a lens by which we can assess whether our leaders are effective in driving our business, building our talent, living the culture, and motivating our people and is used for a variety of people practices and processes such as:

Retaining and building a strong capability pipeline of employees who have the necessary experience, knowledge, skills, and abilities for the bank

  • Internal Mobility and Workforce Planning
  • Senior Leadership Development
  • Active management of the bank’s bench strength for senior leadership cadre positions
  • Leadership & Management programs

Core risk culture behaviors

Our desired culture includes fostering a strong risk culture where all employees are empowered and encouraged to exhibit the core risk culture behaviors:

  • Placing Deutsche Bank and its reputation at the heart of all decisions
  • Being fully responsible for Deutsche Bank’s risk
  • Inviting, providing and respecting challenge
  • Being rigorous, forward-looking, and comprehensive in assessing risk
  • Troubleshooting collectively

To support these behaviors, in 2016 we ran a campaign entitled “We’re all risk managers,” which included a video and intranet messages from Board members and other senior leaders.

Red Flags process

The Red Flags process continues to provide a link between risk-related conduct and performance management. It allows us to monitor adherence to certain risk-related policies and processes, whereby a breach leads to an appropriately risk-weighted Red Flag. In 2016, the process was enhanced through the introduction of IT-enabled reporting. Individual Red Flag results are considered in promotion, compensation and performance management decisions.

Risk awareness training

We have continued to develop our training curriculum to raise risk awareness. In 2016, we launched a revised Risk Awareness course for all employees, which included new sections on reputational risk and risk appetite.

Having established the Conduct, Organization & Regulatory Education program in 2015, in 2016, we rolled out mandatory training courses on regulatory topics, where good conduct consistently underpinned the learning messages for employees—for example, in managing conflicts of interest and the Code of Business Conduct and Ethics.