Perhaps you should revisit your risk management processes, identify key suppliers and counterparts at risk, assess your models, run effective scenario analysis with your senior management and adjust your contingency plans. Strong liquidity positions provided an effective defence against the most recent financial crisis but already constrained debt markets will have limited capacity this time around.
Take measures to capture emerging risks as quickly as possible. The latest trend is to add a time dimension to risk management to tackle fast-moving risks first, and define clear risk triggers to speed up response.
I’d love to know your thoughts about this topic so please leave your comments, opinion, pose your questions and give advice on the implications of the current crisis on your work in particular and on global business in general.
In the attachment to this discussion thread you will find a research paper commisioned by SAP : “The Superstar CFO: After the crisis. What it takes for financial executive to exel in a changing and uncertain world”.
It is perhaps ironically to call it “after the crisis” as we head into next leg of the crisis. The white paper is released by SAP to GlobalRisk Community as we are participants in the exclusive SAP CFO Intellectual Exchange Network.
Participation in this network will provide our members early access to pre-released research, white papers and other high value content.
Please go ahead, read the paper and provide your opinion, give and ask an advice on the implications of the current crisis on your work in particular and on global business in general.
Replies
Dear Most Boris Agranovich.. Heartiest Greets
The material provided to us by you is significantly master class one.
It gives a fair insight of the minds of CFOs, who squarely face the onslaught of global volatility and associated risk environment. I doubt any one today has the magic wand as a tool to ward off such crisis events.
In that respect experiences of these Super Practitioners could form a plausible guide to withstand financial sector tsunamis. Boris, you have done (and doing) a great knowledge sharing service to all of us across the globe. I feel particularly grateful as an Ex-Senior Central Banker involved in Regulation and Supervision for four decades. ...Hats off to you.....
With Love and Very Best Personal Regards
Prof.Subramanian
THERE IS NO QUESTION
Every risk manager in the lending industry has to attend my forthcoming workshops on this subject.
The approach is entirely new and it has almost unaminous support among my peer group. Maybe it is actually unanimous. The book will take a lot longer to write but it is coming and will be published by a university Press- they have supplied a writer to assist me.
The potential to assist with breeding and restoring confidence in borrowing and getting the economy moving as banks benefit in the process is clear.
The benefits to the pensions industry are also significant - but that is another workshop another time, using similar principles for Sovereign Debt. We can make a start here though, as explained on my blog.
I suggest that risk managers and their CEO visit
edward-ingram.blogspot.com
If any bank wants to help me to finish the development work to create the systems, let me know at
edward.ingram2009@googlemail.com
Thank you.