Deutsche Bank Summary- Headquartered in Frankfurt, German,

¶ … Deutsche Bank

Summary- Headquartered in Frankfurt, German, Deutsche Bank AG is a global financial service company that employs more than 100,000 people in over 70 countries. The bank has its primary presence in the EU, the Americas, Asia and numerous emerging markets, and is the largest foreign exchange dealing in the world, holding a market share of 21 per cent (Annual Results, 2011). DBAG was founded in Berlin in 1870 primarily as a specialized bank for foreign trade and to help develop the Northern Pacific Railroad and the Baghdad Railway. Interestingly, the bank was instrumental in the early financing of the giant steel company Krupp and the pharmaceutical giant Bayer, some of which would prove controversial during the 1930s (Gall, et.al., 1995).

Following World War II, and largely because of its involvement in Nazi financing and the unauthorized take overs of banks in Poland, Austria and Czechoslovakia, the Allies insisted that the bank be broken up into 10 regional banks. By the end of the 1950s, the bank entered retail banking. Through the 1980s and early 1990s, the bank aggressively moved to acquire interests in foreign banks and in October 2001, Deutsche Bank was the first new listing on the New York Stock exchange post 9/11. Throughout the early 21st century, DBAG began investing in Russia and strengthening ties within the EU until it achieved its target of a 25% return on equity in 2005 (Annual Results).

From 2008 on, the bank was embroiled in a spying scandal that, in May 2009, it reported to the public as possible violations that occurred within its corporate security department. Essentially, it appears the bank was spying on individuals who were critical of its policies and who had stock in the bank or in other banks, all the while intending to infiltrate in take over other firms. Regulatory authorities have investigated, but are satisfied with the bank's internal audit and procedural changes and no fines or penalties have been issued (Crawford and Nissen, 2009).

Statement of the Issue- In this post-9/11 world, and with the very real possibility of both natural and man-made disasters that have the potential to drastically weaken a multinational concern such as DBAG. Because of its presence in so many markets, it also is left up to more terrorist vulnerabilities based on the political and social climate of the area. Because of this, the bank has a global business continuity and disaster recovery program. This program specifically addresses backup, recovery and issues that would minimize risk to the bank and its clients should a disaster occur. Every six months the New York offices test their program, and the bank now has specific plans for all the other countries and offices in its portfolio, including a new 12,000 square foot center in Singapore. This new facility is large and complex enough to handle all materials from the Asia Pacific Region if necessary. In addition, the bank believes that there are additional survival processes outside of data recovery and protection that are critical for its continued success. These are 1) continuing to meet business objectives and retain customer confidence, and 2) crisis support for its human resources combined with appropriate levels of internal and external communications (Deutsche Bank Ties Business, n.d.).

Solution- DBAG has correctly ascertained that it is possible an action could disrupt its business, terrorize its employees, and significantly hamper its global operations. To solve this problem, and to fit with the SECU requirements that firms create and maintain continuity plans, the bank identified ten critical components and aggressively promotes a department of Business Continuity Development in a global manner.

Essentially, these ten critical areas revolve around three macro areas: data backup and recovery of significant business issues, client communications and data; alternative communications between firm, employees, clients and global offices; and alternative physical locations for employee safety and counseling (if needed). Through mission critical systems, data and communications are backed up on redundant systems, alternative communication standards are set up with other providers and other networks, and plans are in place to allow for client's funds, etc. To be available in an operational manner quickly after a disaster. The primary idea is to ensure prompt and accurate processing of securities so that if one office is hit by a disaster, other offices can almost immediately reroute that system's materials and function as a prime location. In addition, in order to ensure that all communications (employees, vendors, customers, regulatory and governmental agencies) remains robust, several redundant layers have been established in multiple locations that can easily move into primary roles in the event of a disaster (Deutsche Bank, 2010).