Rebuilding Credit Suisse nominates risk management veterans to board

Scheduled for vote in October, Axel Lehmann, who was most recently a member of the group executive board of UBS Group, has been nominated to the Credit Suisse board to serve as chair of its risk committee. Lehmann also served as a non-executive director and member of the risk committee at UBS and previously was chief risk officer and regional chairman for EMEA at Zurich Insurance Group.

In addition, Credit Suisse has nominated Juan Colombas, a non-executive director and member of the audit and risk committees at ING Group, to the board. Prior to joining ING, Colombas served as chief risk officer during a 10-year tenure at Lloyds Banking Group and spent 25 years, including time as U.K. chief risk officer, at Santander Bank.

“I am extremely pleased that Axel Lehmann and Juan Colombas have been nominated to join our Board,” said Credit Suisse Chairman António Horta-Osório in a press release. “With their deep experience in risk management and business leadership, and both with careers spanning approximately three decades in financial services, they will make an invaluable contribution as we shape the bank’s strategic realignment and enhance our culture of risk management and personal responsibility and accountability.”

Andreas Gottschling, the board member who had been leading Credit Suisse’s risk committee, announced in May he was stepping down from the position following massive losses caused by the collapses of Archegos Capital Management and Greensill Capital. Richard Meddings, chair of the audit committee, took over the role on an interim basis.

A recent independent report concluded the bank’s Archegos missteps were “the result of a fundamental failure of management and controls” at its Investment Bank. Credit Suisse fired nine employees, including parting with Chief Risk and Compliance Officer Lara Warner and Investment Bank head Brian Chin, and issued severe financial penalties to 14 others.

The report also concluded some senior management positions had too many responsibilities. Credit Suisse has separated head of risk and head of compliance into two positions, recently announcing the hiring of Goldman Sachs veteran David Wildermuth to take over as chief risk officer by February 2022. A permanent compliance head has yet to be named to replace interim global head of compliance Thomas Grotzer.