Occasionally the SEC and other regulators will castigate, actually punish, fraudulent events on Wall Street. Of course the real punishment is only meted out to individuals and small companies. Mega banks – the banking mafia – are largely immune.
Martha Stewart was convicted of insider trading in 2004 – a relatively small amount – and was sent to jail. It was an act of fraud alright, but it pales in comparison to the fraud of…
Added by Larry Levin on June 29, 2012 at 4:47am —
Effective governance requires changes in the way risks are managed across "stove-pipes" or "business silos". More often than not, when loss events occur it becomes clear after the fact that different silos were holding onto different pieces of the risk puzzle but no one could put the pieces together. So the problem is how to … Continue
Added by Steven Minsky on June 28, 2012 at 10:30pm —
The International Organisation for Standardization is about to enter into a trial review for its ISO 31004 guide. Meanwhile, the risk community is generally aware of what it seems to struggle with and the world of risk knows that certain aspects of risk management are simply not verbose enough in ISO 31000.
So then, perhaps… Continue
Added by Martin Davies on June 28, 2012 at 5:14am —
Learn why any organization relying on the IT ecosystem enabled by the Internet… Continue
Added by GlobalRiskCommunity on June 27, 2012 at 4:42pm —
We define risk as "the effect of uncertainty on objectives" (ISO 31000), however how often do we stop and ask if we have the right objectives in the first place? On what basis were they formed? When were they developed? Have times changed? In my experience facilitating risk workshops, often a poor or even incorrect set of objectives is the "elephant in the room" for the management team. Here are some tips for ensuring you have the right… Continue
Added by Bryan Whitefield on June 27, 2012 at 7:35am —
The problems with risk models, a Bank of England speech on why financial models are broken and the general evolution of risk management.
Over the last few months, risk models have come under the spotlight as a potential reason why risk management, as an entire institutional function, is failing.… Continue
Added by Martin Davies on June 22, 2012 at 10:00am —
China may be once again beating us at our own game. But instead of ripping off American goods and producing them at a fraction of the cost, this time they’ve copied our monetary policy. And like everything the Chinese do, they are doing it big. Continue
The Chinese government has been pumping the economy with liquidity by printing money at an alarming rate. Much of that money has ended up in the hands of wasteful state-owned enterprises, or SOEs lent to them by a banking cabal.…
Added by Larry Levin on June 21, 2012 at 4:17am —
The Partner Asset Facility
A novel concept that might be one way forwards for aligning bankers risk appetites to the outcome they create, is to entertain a Partner Asset Facility.
Added by Martin Davies on June 20, 2012 at 9:30am —
It is often said that the benefits of Risk Management are intangible. No argument here. It's tough to say "You were successful because I helped you manage your risk" when you are talking to an already successful CEO. How then do you demonstrate the benefits of Risk Management?
One approach is around the concept of Intellectual Capital. When we talk about the value of a business, we talk about book value and market value. The difference between book and market value is often described… Continue
Added by Bryan Whitefield on June 19, 2012 at 3:07am —
Earlier on this year, the Bank for International Settlements released a paper which stated directly: "No macro stress test carried out ahead of the crisis identified the build-up of vulnerabilities"
This is a very harsh reality and highlights one of the key areas risk management needs to address. In this article we look… Continue
Added by Martin Davies on June 18, 2012 at 1:00pm —
First, what is Sarbanes-Oxley (SOX) 404 compliance? It is the legal requirement for public companies that senior management state that their company's financial reporting is accurate. Sounds simple? The expense and the value are all in the execution. How is that done? Simply put, the flow of information from the financial reports themselves is traced and connected to the activities that generate… Continue
Added by Steven Minsky on June 12, 2012 at 2:00pm —
Fitch’s publication made the news in the Financial Times recently. An extra $566bn has been announced as the figure big banks will need to meet the tougher Basel III bank capital standards. Continue
But how will financial institutions meet these steep capital requirements? Find out at Euromoney’s…
Added by Stacey Kelly on June 12, 2012 at 10:53am —
A recent debate on the ISO 31000 Linked in forum about time and risk poses the following question "Is delaying a risk considered a separate treatment method or is it just a sub-type of changing the likelihood?"
This is a very interesting statement…
Added by Martin Davies on June 9, 2012 at 12:23pm —
Maturity across the Counterparty Credit Risk (CCR) and Credit Valuation Adjustments (CVA) space varies greatly across the industry. Our recent survey provided some interesting insights as to whether banks are ready for CCR and CVA under Basel III, thanks to detailed responses from our clients and academic participants.
We found that there are clear differences of opinion between academics and practitioners particularly when it comes to Basel III readiness for CCR. The same is… Continue
Added by Ammar Akhtar on June 8, 2012 at 3:55pm —
We'd like to get your input on how you see Big Data and Cloud Data Warehousing. Please take our 10 question survey and give us your input. Everyone who completes the survey will be entered into a drawing for an iPad. The survey closes on June 8th at noon Pacific and the iPad winner will be notified on June 12th. Continue
Added by GlobalRiskCommunity on June 7, 2012 at 10:09pm —
This paper identifies today's most critical web threats and provides checklists for you to identify and evaluate the security capabilities you need for the best web protection.
The web is the number one source for malware distribution today. While many organizations have replaced first-generation URL filters with secure web gateways, even these advanced solutions do not provide web protection everywhere. This paper identifies today's most critical web threats and provides checklists… Continue
Added by GlobalRiskCommunity on June 5, 2012 at 10:02pm —
Mike McGavick discusses how economic instability affects clients, the hardening insurance market, growth through innovation and M&A activity, Dublin's position in the global insurance industry, and the… Continue
Added by J. P. Greene on June 5, 2012 at 3:54pm —
Use companies in GR as "Fronts" for Intelligence, security, etc worldwide.
For NGO, Corp security roles worldwide.
Added by Stephen Russell on June 3, 2012 at 5:45pm —
If we assume risk management is actually formalised within an institution, then a firm might do well to perhaps consider embedding decision making and appetite into their risk enterprise framework.
A look into why it is so hard to comprehend risk appetite and five tips which improve the quantification of risk appetite on… Continue
Added by Martin Davies on June 1, 2012 at 9:53pm —
The cloud is worth the risk if the annual benefit minus the expected cost of risk is greater than the cost to run in-house. A simple statement, however, on closer inspection the complexity of the decision becomes apparent and the engineer in me rises to the surface. Below is the cloud outsourcing decision expressed in mathematical terms. If you follow it through your cloud outsourcing decision should become clearer, even if it is difficult to assign numbers…
Added by Bryan Whitefield on June 1, 2012 at 4:08am —