The job of a bank’s chief operating officer (COO) doesn’t conjure up the glamour of the visionary chief executive or the urbane chairman. Rarely do they venture under the media spotlight. Yet, it is hard to underestimate the role’s importance or its profile within the organisation, which has swollen since the 2008 financial crisis.
Asia poses unique challenges for bank COOs. There are over 20 different country regulators within the region and each has their idiosyncrasies. Different and varied cultures have systems, processes and staff that need to be understood. In addition, the sheer distance between operations in different countries can be a major challenge.
“There have been substantial changes since 2008. First we had to battle the storm, and subsequently cope with a raft of new regulations from several jurisdictions; not just from the US and Europe, but also from different Asian countries,” said Rodrigo Zorrilla, Citi’s Asia COO.
The stakes for banks are high as failure to respond appropriately to a plethora of new regulations can be damaging for both finances and reputations. In 2011 Deutsche Bank was banned from proprietary securities and derivatives trading in Korea for six months and fined for manipulating the country’s benchmark stock index the Kospi. The people involved have now left Deutsche but are still being investigated by Korean prosecutors.
Many banks now have departments that specifically focus on regulatory compliance to try to avoid any such mishaps.
COOs are on the frontline of these changes. Their responsibilities will depend on the organisation, and many have a very wide remit, including operations, finance, technology, infrastructure and human resources.
To read the full story, see the upcoming June 2013 issue of FinanceAsia magazine. Subscribe here.
