Organization of GBB-Rating
GBB-Rating is well endowed with an appropriately skilled and experienced workforce capable of issuing, monitoring and updating ratings. By way of proper planning, GBB-Rating makes certain that analyses are performed giving due consideration to the material, time and personnel resources required by the individual client's circumstances. To ensure that its employees maintain the relevant professional standards, GBB-Rating applies a structured selection procedure and provides a comprehensive induction and continuous development program.
The task of the analysts consists of thoroughly reviewing and analyzing the submitted and requested documents. Analysis entails both determining and assessing specified indicators of the financial position and financial performance on the one hand, and evaluating criteria more appropriately described as qualitative on the other. The types of ratings performed by GBB-Rating encompass numerous individual criteria, which the analyst validates and evaluates on the basis of his assessment. The relevant rating system produces a rating result from the aggregated evaluations.
In order to satisfy the specific requirements that arise when rating financial service providers and small and medium-sized enterprises in other sectors, the individual analysis teams focus on certain market segments, target groups and subject areas. Additional services, such as scoring and benchmarking, are performed by project teams comprising selected experts in a variety of fields.
The second analyst checks and verifies the individual evaluations and the accuracy of the indicators. This work is always performed in compliance with internal directives and process instructions. With a view to ensuring a uniform and objective approach, the data & controlling unit undertakes extensive assessment monitoring. It is also responsible for compliance with both the defined assessment rules and the evaluation system.
The lead analyst and second analyst are responsible for producing the rating. In addition, the lead analyst is the competent person for conducting management meetings and delivering presentations. For the duration of his tenure, he serves as the client's principal contact.
When occupying lead and second analyst roles, the analysts of GBB-Rating are rotated at different intervals. The lead analyst cannot oversee the same client for more than four years in succession. After managing a client's account for a full term, he cannot resume working for the same client until at least two years have elapsed. The second analyst is rotated after no more than five years. After serving a full five-year term, he too cannot resume working for the same client until at least two years have passed. In the interests of continuity, as regards both rating practice and contact with the client, the lead and second analysts are generally not rotated at the same time.
GBB-Rating regularly reviews its rating methods and models within the framework of validation and backtesting procedures. The quantitative methods unit performs the regular backtesting and the validation procedures, and also contributes to refining the rating systems.
Apart from supporting the other units, the corporate center performs additional key functions, including bookkeeping and accounts, IT, efficiency controlling, personnel, legal affairs, and facility management. The corporate center is responsible for compliance and internal auditing, and serves as the company's data protection officer.
In its compliance function it monitors the compliance of GBB-Rating and its employees with the relevant obligations arising from Regulation (EC) No. 1060/2009 of the European Parliament and of the Council on credit rating agencies, and reports its findings to the management board and the rating supervisory board.
GBB-Rating is subject to the scrutiny of the internal auditing department according to an audit plan spanning several years. The department is subdivided into general auditing and IT auditing sections.
The data protection officer fosters compliance with the provisions of the Federal Data Protection Act (BDSG) and other regulations governing data privacy.
Alongside the units described above, critical roles are also played by the rating supervisory board, the methods committee, and the rating committee.
The members of the rating supervisory board of GBB-Rating, as defined by Regulation (EC) No. 1060/2009 of the European Parliament and of the Council on credit rating agencies, fulfill a monitoring and control function. They support the management, in particular in its duty to ensure the independence of the rating activities, the freedom from same of political or economic influence or restrictions, the proper investigation, processing and disclosure of conflicts of interest, and compliance with the other requirements of Regulation (EC) No. 1060/2009 of the European Parliament and of the Council on credit rating agencies.
The task of the methods committee is to safeguard the existence of effective systems, procedures and adequate resources capable of ensuring the continuity, currency, regularity, objectivity, quality and systematic nature of the rating activities pursued by GBB-Rating. It is responsible for final approval of the regular inspection of the methods, models and fundamental assumptions – including mathematical and correlation assumptions, for example – and of all significant changes or modifications relating to same.
The rating committee pursues its activities in compliance with the statutory provisions, especially Regulation (EC) No. 1060/2009 of the European Parliament and of the Council on credit rating agencies. Its responsibilities include, in particular, the final determination of the rating and its continuous monitoring, as well as the suspension or withdrawal of a rating.