White papers - Forum - Global Risk Community2024-03-29T05:43:27Zhttps://globalriskcommunity.com/forum/topics/feed/category/White+papersKYC Remediation: Mistakes and Best Practiceshttps://globalriskcommunity.com/forum/topics/kyc-remediation-mistakes-and-best-practices2020-11-03T13:28:57.000Z2020-11-03T13:28:57.000Z2lu2x9rq34tj8https://globalriskcommunity.com/members/2lu2x9rq34tj8<div><p><span>How accurate and complete are your customer files? As regulated institutions face increasing scrutiny on their existing customer data and risk assessment decisions, KYC remediation has become critical to avoiding penalties and lost revenue. </span><span> </span></p><p><span>In our latest white paper, </span><span>Fourthline</span><span> CEO Krik Gunning outlines the best practices and most treacherous pitfalls institutions face when undertaking a KYC remediation project. Done right, it leads to better customer data and less fraud—but done wrong, it can be the ultimate money pit.</span><span> </span></p><p><span>Learn how today’s technology can help you save over 90% of the potential costs associated with remediation. </span><span> </span></p><p></p><p><em>Highlights and quick facts</em></p><ul><li><em>Regulators across multiple jurisdictions have turned their attention to the Know Your Customer (KYC) and Customer Due Diligence (CDD) files of existing bank clients</em></li><li><em>Once in the crosshairs of a regulator, a bank needs to act quickly and decisively—often in the face of an imminent deadline</em></li><li><em>Common mistakes banks make when initiating a remediation project: putting the burden on clients, recruiting expensive, untrained staff, trying to build a file with patchwork data, and relying on manual processes</em></li><li><em>Best practices for a successful large-scale remediation process include rewarding clients, improving data quality, and prioritizing cost and time.</em></li></ul><p></p><p><strong><em>Download the PDF <a href="https://www.fourthline.com/download-kyc-remediation-white-paper" target="_blank">KYC Remediation: Mistakes and Best Practices</a> </em></strong></p></div>Corporate Psychopaths Research Paperhttps://globalriskcommunity.com/forum/topics/corporate-psychopaths-research-paper2018-04-26T19:32:37.000Z2018-04-26T19:32:37.000ZDr Manjit Singh Chodhahttps://globalriskcommunity.com/members/DrManjitSinghChodha<div><p class="p1"><strong>Corporate Psychopaths</strong></p><p class="p2"><i>"As corporate psychopaths are reported to cause chaos and confusion in the workplace and to use resources for their own ends, it was expected that employees would experience greater constraints in their presence than would otherwise have been the case"</i></p><p class="p2">Corporate psychopaths directly affect such organisational development because they tend to be disruptive to those around them, and especially to junior colleagues (Clarke, 2005). The presence of corporate psychopaths in a corporation, therefore, would theoretically be expected to be associated with lower levels of organisational effectiveness and increased organisational constraints.</p><p class="p2"><a href="{{#staticFileLink}}8028397868,original{{/staticFileLink}}"><img src="{{#staticFileLink}}8028397868,original{{/staticFileLink}}" width="190" class="align-left" alt="8028397868?profile=original" /></a></p><p class="p2"></p><p class="p2">A recent research conducted by Boddy C.R. (2010) investigated this possible association and found that increased constraints were clearly evident in the presence of corporate psychopaths in an organisation.</p><p class="p2"></p><p class="p2">Where an organisation has been infiltrated by corporate psychopaths, previous commentators have reported that often, a few people get very rich while everyone else suddenly finds themselves abandoned, out of a job, without their promised pension or even without a company left to work for (Ullman, 2006).</p><p class="p2"></p><p class="p2">Download the full paper:</p><p><a href="{{#staticFileLink}}8028397681,original{{/staticFileLink}}">Corporate Psychopaths Research Paper</a></p><p></p><p>What are your thoughts on this topic? Please share in the comments</p></div>GARP Buy Side Risk Managers Forum releases Risk Principles for Asset Managershttps://globalriskcommunity.com/forum/topics/garp-buy-side-risk-managers-forum-releases-risk-principles-for2015-10-19T14:40:40.000Z2015-10-19T14:40:40.000ZCary Lynehttps://globalriskcommunity.com/members/CaryLyne<div><p><a href="{{#staticFileLink}}8028397064,original{{/staticFileLink}}">BSRMF_Risk_Principles_2015.pdf</a></p><p></p><p><a href="http://www.prnewswire.com/news-releases/garp-buy-side-risk-managers-forum-publishes-new-risk-principles-for-asset-managers-300159944.html" target="_blank">http://www.prnewswire.com/news-releases/garp-buy-side-risk-managers-forum-publishes-new-risk-principles-for-asset-managers-300159944.html</a></p><p></p><h1>GARP Buy Side Risk Managers Forum Publishes New Risk Principles for Asset Managers<small>Best-practices document updated reflecting the changing role of risk management on the buy-side, evolving regulation and post-crisis risks faced by investment managers and the clients whose risks they are entrusted to manage. The Risk Principles document is updated and enhanced from a previous version published in 2008.</small></h1><p><span class="xn-location">JERSEY CITY, N.J.</span>, <span class="xn-chron">Oct. 15, 2015</span> /PRNewswire-USNewswire/ -- The GARP Buy Side Risk Managers Forum is announcing the release of <i>Risk Principles for Asset Managers</i>, a statement of best-practices guidelines prepared by senior risk management executives of leading investment firms.</p><p>Logo - <a href="http://photos.prnewswire.com/prnh/20151014/276855LOGO" target="_blank">http://photos.prnewswire.com/prnh/20151014/276855LOGO</a></p><p>The <a href="http://go.garp.org/BSRMF-Risk-Principles-2015" target="_blank">21-page document</a> outlines a basic framework for governance, investment risk and operational risk, and, in sections devoted to each, describes their relevance to buy-side firms and approaches to effective implementation.</p><p>Reflecting the shared expertise of GARP Buy Side Risk Managers Forum members, the principles are designed to guide boards, trustees, senior portfolio and business managers and risk personnel in developing and evaluating their risk management framework. However, taking note of the wide variety of money management and advisory firms contributing to and covered by the <i>Risk Principles</i>, the document states that any particular firm's principles "depend on many factors, and each firm is advised to carefully consider its particular risks and the most effective way to address them." There is ultimately no "one size fits all" solution for Risk Management on the buy-side and each risk management program should be tailored to optimize effectiveness relative to the risks of each firm and investment processes which they execute.</p><p>"Far-reaching regulatory changes since the global financial crisis, along with advances in enterprise risk management capabilities and higher expectations of risk functions by clients, regulators and management boards, have made this an opportune time to issue revised and enhanced <i>Risk Principles</i>," said <span class="xn-person">Ross Cuddeback</span>, President of the GARP Buy Side Risk Managers Forum.</p><p>"As fiduciaries, our institutions are entrusted with decisions directly impacting the financial well-being of individuals, corporations and nations – and ultimately the global economy. That responsibility requires the highest standards in risk management to be embedded in our operations and cultures, which the <i>Risk Principles</i> are designed to underscore and reinforce," added Cuddeback, who is Head of Asset Management Risk– Americas for Deutsche Asset & Wealth Management.</p><p>"The Global Association of Risk Professionals is pleased to have worked with the industry-leading practitioners of the forum to complete the timely new edition of <i>Risk Principles for Asset Managers</i>," stated <span class="xn-person">Richard Apostolik</span>, President and Chief Executive Officer of GARP. "It is in keeping with our ongoing mission, through education and thought leadership, to promote the risk management profession and, within it, best practices and professional standards of the highest caliber."</p><p><i>Risk Principles for Asset Managers </i>can be accessed via: <a href="http://www.garp.org/#!/buy_side_risk_managers_forum/" target="_blank">http://www.garp.org/#!/buy_side_risk_managers_forum/</a></p><p><b>About The Global Association of Risk Professionals </b> </p><p>The Global Association of Risk Professionals (GARP) <a href="http://www.garp.org/" target="_blank">http://www.garp.org</a> is a not-for-profit global membership organization dedicated to preparing professionals and organizations to make better-informed risk decisions. The GARP community represents over 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions and corporations from more than 195 countries.</p><p>GARP's mission is to educate, train and set global standards in financial and energy risk management. The association administers the Financial Risk Manager (FRM<span>®</span>) and Energy Risk Professional (ERP<span>®</span>) exams; certifications recognized and valued by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels.</p><p><b>About The GARP Buy Side Risk Managers Forum</b></p><p>The GARP Buy Side Risk Managers Forum consists of heads of risk management and chief risk officers from investment management and advisory companies, including asset management firms in the U.S. and worldwide serving retail, high-net-worth and institutional clients. For a list of current members of the Forum, click <a href="http://go.garp.org/bsrmf_officers_members" target="_blank"><b>here</b></a>. </p><p><b>For all inquiries please contact: <br /></b><span class="xn-person">Craig Collins</span>, SVP, Head of Media & Global Business Development <br />Global Association of Risk Professionals (GARP) <br />(o): +1-201-719-7242 <br /><a href="mailto:craig.collins@garp.com" target="_blank">craig.collins@garp.com</a></p><p>RELATED LINKS: <br /><a href="http://go.garp.org/BSRMF-Risk-Principles-2015" target="_blank">http://go.garp.org/BSRMF-Risk-Principles-2015</a> <br /><a href="http://www.garp.org/#!/buy_side_risk_managers_forum/" target="_blank">http://www.garp.org/#!/buy_side_risk_managers_forum/</a> <br /><a href="http://www.garp.org/#!/home" target="_blank">http://www.garp.org/#!/home</a></p><p> </p><p></p><p>SOURCE The Global Association of Risk Professionals (GARP)</p><p><br /><br /><span>RELATED LINKS</span><br /><a title="Link to http://www.garp.org" href="http://www.garp.org/" target="_blank">http://www.garp.org</a></p></div>Model Development and Model Validation: Creating a Sound Cross-Divisional Relationshiphttps://globalriskcommunity.com/forum/topics/model-development-and-model-validation-creating-a-sound-cross2014-10-16T14:59:01.000Z2014-10-16T14:59:01.000ZTyler Kelchhttps://globalriskcommunity.com/members/TylerKelch<div><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><i>Interview with Yidong Liu, Director, Commercial Credit Scorecard Modeling, Credit Strategies Group with MUFG Union Bank, N.A., on key topics to be discussed at the upcoming GFMI <b>5<sup>th</sup> Edition Model Risk Conference, on January 26-28, 2015 in San Francisco, CA </b></i></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>Model risk issues are as important as ever in the environment where the regulatory pressures are mounting and resources are scarce. Today, model development, validation and assessment require new tools and a range of quantitative and qualitative measures to tackle model risk issues. At the <a href="http://www.global-fmi.com/marcusevans-conferences-event-details.asp?EventID=21608&SectorID=2&utm_source=YLintvw&utm_medium=link&utm_campaign=21608_YLintvw_link"><b>5<sup>th</sup> Edition Model Risk Conference</b></a>, Yidong Liu with MUFG Union Bank, N.A. will touch upon how to facilitate positive communication between model developers and validators in his stand alone case study presentation. Yidong gives pre-conference insights into his session and the conference topics: <b><br /> <br /></b> <b>What are the key trends and developments in model risk management today?</b></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>YL:</b> Currently, model risk management involves regulators, an audit department, a model validation department, a model development department, and model users. These groups are not clear where the boundaries of their duties end. Because of the lack of clarity, communication between each group is critical at present.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>To ease the tension between these groups, a well accepted protocol is necessary. One that is understood by all and calls for cooperation across the multiple company divisions.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>At the conference, you will be talking about relationships between model developers and model validators. What are the major challenges in these communications?</b></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>YL:</b> Model validators and model developers have common interests, but different goals. The common interest is that we all work for the same bank. The goals of model developers include: satisfying model users, using available resources to address business issues, passing model validation and regulatory requirements. The goals of model validators include: following the model validation procedures and satisfying auditing and regulatory requirements.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>The main challenge is that the same model validation procedure cannot be applied to each model since they are different. Benchmarks testing and back testing are not available for economic capital calculation. In addition, scenario testing is hard to apply to CCAR models since the correlation under stressful scenarios is usually not the same as the correlation among normal scenarios.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>How can relationships improve and become stronger between model developers and validators?</b></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>YL:</b> First of all, model developers and model validators should respect each other and understand the limitation from each side.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>Model validators need to be aware of the data and people resource limitations that developers face in their operations. On the other side, model developers need to take into account the knowledge and time limitations that hinder project efficiency for model validators.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>To fix this void between the two, companies need to train model developers and validators together.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>What is the role of internal audit in model development and validation?</b></p><p><b>YL:</b> Because the boundary between model validation and audit is not clear, it is important for the auditor and model validator to work closely together.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>One solution is to perform auditing and model validation at the same time. In this system, model developers save time by avoiding explaining the same topics twice. This approach also avoids any gap between auditing and model validation. I have personal experience in checking system implementation data quality from both perspectives (model validators and auditors).</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>What do you think you will gain by attending this event?</b></p><p><b>YL:</b> I look forward to learning from each other. If other banks have had similar experiences and found effective solutions, then we will save time compared to trying to find solutions on our own.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>Although different banks have different model risk management procedures, they all have similar models. Understanding the limitations and assumptions of common models will help people understand real model risks and find effective ways to measure/manage model risks.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><i>All responses represent the view of Mr. Liu and not necessarily those of MUFG Union Bank, N.A.</i></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>For more information, please contact Tyler Kelch, Marketing Coordinator, Media & PR, GFMI at 312-894-6310 or <a href="mailto:tylerke@global-fmi.com">tylerke@global-fmi.com</a></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>About Yidong Liu</b></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b><i>Director, Commercial Credit Scorecard Modeling, Credit Strategies Group, MUFG Union Bank, N.A.</i></b></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>Yidong Liu is a financial risk veteran with 18 years of working experience in different financial institutes. Yidong started his first job as a model validator at Global Analytics in CIBC bank at Toronto, Canada. At that time the model validation was called vetting. The team validated models in trading floor systems and models implemented in Excel. Later on, Yidong worked on model validation at PNC bank and BBVA Compass Bank.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>Currently, Yidong is the manager of the Union Bank wholesale scorecard PD modeling team. The team supports scorecard modeling, CCAR stress testing and acquired asset valuation. Yidong Liu received his MS in Computer Science from University of Toronto and his MS in Applied Math from University of British Columbia. Yidong also holds CFA and FRM certificates.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p><b>About GFMI</b></p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"></a></p><p>GFMI (a marcus evans company) conferences annually produce over 2,000 high quality events designed to provide key strategic business information, best practice and networking opportunities for senior industry decision-makers. Our global reach is utilized to attract over 30,000 speakers annually; ensuring niche focused subject matter presented directly by practitioners and a diversity of information to assist our clients in adopting best practice in all business disciplines.</p><p><a href="{{#staticFileLink}}8028397069,original{{/staticFileLink}}"> </a></p></div>Hong Kong: Risks and Challengeshttps://globalriskcommunity.com/forum/topics/hong-kong-risks-and-challenges2014-03-30T21:59:19.000Z2014-03-30T21:59:19.000ZKristi Rohtsaluhttps://globalriskcommunity.com/members/KristiRohtsalu<div><p>My recent research paper which concludes <a href="http://kristi99.wordpress.com/2014/03/05/my-hong-kong-adventure-2014/" target="_blank">my Hong Kong adventures</a> can be downloaded from FRXmarket: <a href="http://www.frxmarket.com/p/hong_kong_risks_and_challenges/243" target="_blank">http://www.frxmarket.com/p/hong_kong_risks_and_challenges/243</a></p><p></p><p>In this paper the other side of the Hong Kong’s success as one of the leading global financial centers is being discussed: Hong Kong’s weaknesses, risks and challenges. One should read it for counterbalancing the impressions that one gains from government websites and promotional materials.<br /><br />The main discussion topics are: <br />* Hong Kong’s big and growing economic & financial dependence from Mainland China <br />* Big, foreign-controlled and structurally imbalanced financial sector<br />* Unequal, divided and polarized society<br />* One of the hottest property markets in the world: now softening or about to collapse? <br />* Shadow banking, “underground finance” and money laundering <br /><br />The text includes references for further reading as well as a brief summary of the situation in Mainland China. If data are provided without dates and/or terms like “currently” are being used, the data is given as available in March 2014.<br /><br />One of the key conclusions is that Hong Kong is increasingly becoming a Chinese city and a part of China rather than being a global financial center and a gateway between the Mainland and the rest of the world – even if Hong Kong’s marketing message is different.<br /><br />Last but not least, suggestions are given for Hong Kong to retain its current position in global finance; these are not necessarily in agreement with the current policy agenda.</p></div>Modeling U.S. Corporate Default Rates: Little Experimenthttps://globalriskcommunity.com/forum/topics/modeling-u-s-corporate-default-rates-little-experiment2013-08-26T14:19:18.000Z2013-08-26T14:19:18.000ZKristi Rohtsaluhttps://globalriskcommunity.com/members/KristiRohtsalu<div><p>"Modeling U.S. Corporate Default Rates: Little Experiment"</p><p>Download it (free) from the Financial Research Exchange: <a href="http://www.frxmarket.com/p/modeling_us_corporate_default_rates_little_experiment/234" target="_blank">http://www.frxmarket.com/p/modeling_us_corporate_default_rates_little_experiment/234</a></p><p></p><p>This report describes an example case of default risk modeling. Specifically, a simple model for forecasting the U.S. corporate default rates is being developed together with the reader. Further, default rates up to mid-2014 are being forecasted, and compared with the estimations of the rating agencies and opinions of some other financial market participants. </p><p></p><p>I wrote the paper to share my own experiences with (junior) credit risk modelers. It probably provides valuable insights also for the individual investors who have been venturing into the speculative grade U.S. corporate bonds...</p></div>What Every Employer Needs to Know about Mandatory Reportinghttps://globalriskcommunity.com/forum/topics/what-every-employer-needs-to-know-about-mandatory-reporting2013-05-11T12:54:05.000Z2013-05-11T12:54:05.000ZMaryRose Reastonhttps://globalriskcommunity.com/members/MaryRoseReaston<div><a href="http://www.insurancethoughtleadership.com/index.php/risk-transfer/healthcare/articles/dont-get-washed-away-by-the-medicare-set-aside/#axzz2SzImku19">http://www.insurancethoughtleadership.com/index.php/risk-transfer/healthcare/articles/dont-get-washed-away-by-the-medicare-set-aside/#axzz2SzImku19</a></div>Introducing the Global Risk Series - Book 1 Risk Management How Toshttps://globalriskcommunity.com/forum/topics/risk-management-how-tos2013-04-26T10:00:34.000Z2013-04-26T10:00:34.000ZBoris Agranovichhttps://globalriskcommunity.com/members/BorisAgranovich<div><div class="page" title="Page 5">
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<p>Dear GlobalRisk Community member,<br /> Our community’s mission is to foster business, networking and educational explorations among<br /> members. Learn from some of the top experts in the industry as they clearly explain how to approach the most important Risk management concepts. Check out their expert tips and use the link at the end of each article to navigate back to the website to leave your comment or ask a question.</p>
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<p><strong>Some of the topics include:</strong></p>
<p>How do you Explain Risk Appetite? <br /> How to Prepare a Risk Statement <br /> What is Risk Culture Building? <br /> Presenting Risk Management to the Board<br /> Risk Leadership - Should a Board have a Risk Committee?</p>
<p>Best Practices for Keeping and Protecting Corporate Reputation</p>
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<p>Preparing Annual Risk Management Strategy </p>
<p>Creating a Risk-Focused Organization</p>
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<p>and many more</p>
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<p><a href="{{#staticFileLink}}8028396256,original{{/staticFileLink}}"><img class="align-left" src="{{#staticFileLink}}8028395700,original{{/staticFileLink}}" alt="8028395700?profile=original" width="200" /></a></p>
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<p>Special thanks go to members who contributed to this report: Bryan Whitefield, Risk Culture Builder, Steven Minsky, Vincent Kroening, Sonia Jaspal, Peter Chisambara, Deon Binneman. </p>
<p><span class="font-size-6" style="font-family:verdana, geneva;"><a href="{{#staticFileLink}}12403021677,original{{/staticFileLink}}" target="_blank">Click here to download the book</a></span></p>
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<p>Please let us know what you think by placing your comments in the comments field below and share this article with your friends and colleagues using the Share buttons below.</p></div>1st Kuwait Entreprise Risk Management Conferencehttps://globalriskcommunity.com/forum/topics/1st-kuwait-entreprise-risk-management-conference2012-12-16T06:51:46.000Z2012-12-16T06:51:46.000ZYouness El Kandoussihttps://globalriskcommunity.com/members/YounessElKandoussi<div><p>It has been a very enriching event that took place in Kuwait from the 25th to 27th November 2012:</p><p>"The First Kuwait ERM Conference</p><p>My presentation is herein shared to whomever interested: "<a target="_blank">Operational Risk the Non-Finacial Risk Aspect of the ERM</a>".</p><p>Other speakers papaer are available at this link: <a href="http://spatialco.com/web/upcoming-events/kuwait-enterprise-risk-management-conference-2/">http://spatialco.com/web/upcoming-events/kuwait-enterprise-risk-management-conference-2/</a></p><p> </p><p>Thanks</p><p>Youness El kandoussi</p><p>Manager - Operational Risk</p><p> </p><p class="attachment"><a href="{{#staticFileLink}}8028395860,original{{/staticFileLink}}" target="_blank">Operational Risk the Non-Finacial Risk Aspect of the ERM.pdf</a></p></div>Constructing Trust - A Research paper I did for Relational Economics,https://globalriskcommunity.com/forum/topics/constructing-trust-a-research-paper-i-did-for-relational2012-09-26T12:39:22.000Z2012-09-26T12:39:22.000ZMichael Proulxhttps://globalriskcommunity.com/members/MichaelProulx<div><p>This reserach calls into question to the size of the de-leveraging of the US banking industry by considering relational or network aspects of trust as a priori for socio-econimic interaction.</p><p> </p><p>I welcome responses, critique and discussion.</p><p>Mike Proulx</p><p class="attachment"><a href="{{#staticFileLink}}8028395855,original{{/staticFileLink}}" target="_blank">Constructing Trust.pdf</a></p></div>Should Central Banks intervene in economies?https://globalriskcommunity.com/forum/topics/should-central-banks-intervene-in-economies2012-09-05T11:06:58.000Z2012-09-05T11:06:58.000ZEdward C D Ingramhttps://globalriskcommunity.com/members/EdwardCDIngram<div><p>I am in a discussion on LinkedIn with some very capable people. We are discussing the Gold Standard debate and why we are debating a return to this standard. 70% of people in an opinion poll felt the need for this. But what they really want is a simpler economic model that works. Here is how we might get there:</p><p></p><p>We have agreed in my discussion group, that Central Banks should try just releasing new money on a drip-drip basis as a rate that supplies enough funds for the GDP that it services. They should not be interventionist - they usually just create more problems when they intervene.</p><p></p><p>I have said that the new money should reach everyone as a gift as a reduction in VAT. This kind of stimulus will keep the economy in balance.</p><p></p><p>For an economy that has a sustainable real economic growth rate of 3% p.a. and wants an inflation rate of 1% the rate of growth of nominal GDP should be around 4% p.a. (1% + 3%); or should we target National Income rather than GDP? </p><p></p><p>OR should we target AEG - see my Blogs and the Glossary - AEG = Average earnings / Incomes Growth. It matters little - we will find the best rate by trial and error. See below for damage mitigation if we get it wrong:</p><p></p><p>After that we need to take out everything that prevents Adam Smith's pricing adjustment from functioning properly.</p><p></p><p>I list eight of those in my main Blog. One is interventionist Central Banks, another is capital movements across currencies and another is the Housing Finance System.</p><p></p><p><a href="http://macro-economic-design.blogspot.com">http://macro-economic-design.blogspot.com</a></p><p>See the </p><p>Research ABSTRACT</p><p></p><p>With those eight amended structures in place the theory is this: leave it to the now undistorted pricing mechanism and that will minimise our problems. Everything will adjust to rising demand and demand will undulate but not run out of control. If a stimulus does prove to be needed there is a Keynesian way to do that by reducing VAT and borrowing unborrowed money on a temporary basis using my Wealth Bonds as the vehicle. These wealth bonds are indexed to rising average incomes and preserve the wealth lent to the fiscuss at no wealth cost to the tax payer. Ideal to remove investment risk from portfolios to any desired level.</p><p>The outcome of too much money supply injection will be a faster rate of AEG% p.a. and a correspondingly high rate of growth of rentals, property prices, savings, mortgage payments, growth of debt, growth of all wealth assets and all debts and growth of all spending - ALL in direct proportion to the raised level of AEG% p.a.</p><p></p><p>If Nominal GDP rises faster than target as a result of too fast a drip-feed by the Central Bank, wait to see if it is temporary. Waiting will not damage the economy. Everything will adjust in proportion, spending and wealth. If this too fast rate persists, reduce the rate of drip feed.</p><p></p><p>The problem with the present structures is that the spending and wealth responses are not proportionate and that creates a huge volume of instabilities which have endless knock-on effects causing our educational institutions to have a field day and causing enormous confusion to everyone else.</p><p></p><p>My Blogs explain, and will continue to explain these processes in considerable detail, as well as the practical steps that people can take to defend themselves and their businesses right now.</p><p></p><p>The sooner we put the right structures in place, the sooner our economies will recover.</p><p></p><p>After reading my Blogs, please send me your questions.</p><p></p><p></p><p></p><p></p><p></p><p></p><p></p></div>Case Analysis of GAINESBORO MACHINE TOOLS CORPORATION: The Dividend Policyhttps://globalriskcommunity.com/forum/topics/case-analysis-of-gainesboro-machine-tools-corporation-the2012-08-31T19:41:23.000Z2012-08-31T19:41:23.000ZGholamreza Soleimanihttps://globalriskcommunity.com/members/GholamrezaSoleimani<div><div>This case is about the impact of an environmental factor (External issue) on dividend policy of the firm (Internal issue). The environmental disaster was Hurricane Katrina which was caused the huge destruction across the south-eastern United States. Because of the storm, the stock market notably fell down.</div><div> </div><div>Since it is possible that the price of the shares once more increase even more than before in the near future, Ashley Swenson, chief financial officer (CFO) of Gainesboro Machine Tools Corporation has the dilemma to buy back stock or to spend the money as dividend the shareholders. In fact, the question is: How can she forecast the fortune of the stock market? In the other word, what are the driving forces (as the external factors) which are affecting on internal factors such as dividend policy? Definitely, the best way is to use from Fuzzy Delphi Method (FDM).</div><div> </div><div>To perceive FDM, please review my article of “<b>Fuzzy Delphi Method to Design a Strategic Plan” on link”</b><a href="http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic.html">http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic.html</a>”.</div><div>At the first, she can design a strategic plan including current and future BCG matrix. I think that one of the best reference books which has established a logical relationship between BCG matrix and Dividend policy is: <b><i>“Corporate Financial Strategy” by Ruth Bender and Keith Ward (Elsevier Butterworth-Heinemann)”.</i></b> </div><div>I would like to refer you page 34 (please review <b>STEADY STATE</b>), page 59 (<b>Balancing business and financial risk</b>), page 75 (<b>Figure 4.14</b>), page 226 (<b>Dividends and buybacks</b>) on 3<sup>rd</sup> edition (2009). Where is the location of the firm in BCG matrix? Stars (Growth), Question marks (Launch), Cash cows (Maturity) or Dogs (Decline).</div><div> </div><div>According to this reference book, we have below conditions for each area of BCG matrix:</div><div>You can review the continuation of this case on below link:</div><div><a href="http://emfps.blogspot.com/2012/03/case-analysis-of-gainesboro-machine.html">http://emfps.blogspot.com/2012/03/case-analysis-of-gainesboro-machine.html</a></div></div>Fuzzy Delphi Method to Design a Strategic Planhttps://globalriskcommunity.com/forum/topics/fuzzy-delphi-method-to-design-a-strategic-plan2012-08-31T19:32:50.000Z2012-08-31T19:32:50.000ZGholamreza Soleimanihttps://globalriskcommunity.com/members/GholamrezaSoleimani<div><div>Nowadays, Fuzzy Delphi Method (FDM) is broadly used by researchers in the various fields of Science, Technology and Management. This method was stated by Ishikawa et al. (1993) in which it is the integration between the traditional Delphi techniques and fuzzy set theory.</div><div>In this article, I am willing to employ FDM to design a strategic plan. At the first, I will explain a brief methodology of Fuzzy Delphi Method then I will depict step by step to make a strategic plan and I will highlight where we need to utilize FDM. Finally, I will bring an example for better perception of FDM.</div><div><b>Methodology </b></div><div><b> </b></div><div>Traditional Delphi method is an approach to gathering information from high qualified experts to develop the predictions about future events. A panel of experts is chosen. Then, they release their opinions for each feature where the responses of experts are collected and analyzed statistically. The processed data will communicate with the experts again to write another response. This procedure will be repeated rounds of questioning and written responses in which the outcome will cover the reasonable data to solve a problem or to forecast an event in the future. This method was developed by the Rand Corporation at Santa Monica, California in the late 1960s. One of the most important problems is to solve the fuzziness of the expert consensus within the group decision making. Murray et al. (1985) first proposed the application of fuzzy theory to the Delphi method. Then Ishikawa et al. (1993) utilized the maximum-minimum method together with cumulative frequency distribution and fuzzy scoring to compile the expert opinions into fuzzy numbers. We can use triangular fuzzy number, trapezoidal fuzzy number and Gaussian fuzzy number as the selection of fuzzy membership functions. There are many Fuzzy Delphi methods such as basic FDM, Fuzzy Analytic Hierarchy Process (FAHP), and the concept of distance (dij) between two triangular numbers refer to Kaufmann and Gupta (1988). In this article, my example is applied the triangular membership functions referred to basic FDM accompanied by the type of alpha –cut method (Ranking) as threshold. <b><i>But in the next article,</i></b> <b><i>I will bring an example of Distance method and I will compare these two methods. (Why?) I will tell you the reason behind of this comparison in the next article.</i></b></div><div>Now, let us see a literature review of basic FDM as follows:</div><div>Yu-Lung Hsu et al. (2010) stated the steps of basic FDM: [1]</div><div>“<i>1. Collect opinions of decision group: Find the evaluation score of each alternate factor’s significance given by each expert by using linguistic variables in questionnaires.</i></div><div><i> 2. Set up triangular fuzzy numbers: Calculate the evaluation value of triangular fuzzy number of each alternate factor given by experts, find out the significance triangular fuzzy number of the alternate factor.</i></div><div><i> 3. Defuzzification: Use simple centre of gravity method to defuzzify the fuzzy weight.</i></div><div><i> 4. Screen evaluation indexes: Finally proper factors can be screened out from numerous factors by setting the threshold.”</i></div><div>I also used from above steps for my example in this article.</div><div><b>Designing Strategic Plan</b></div><div><b> </b></div><div><b>You can review the continuation of this article on below link:</b></div><div><b> </b></div><div><b><a href="http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic.html">http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic.html</a></b></div></div>Europe’s Debt Hole (Numerical Assessment)https://globalriskcommunity.com/forum/topics/europe-s-debt-hole-numerical-assessment2012-08-20T16:36:55.000Z2012-08-20T16:36:55.000ZKristi Rohtsaluhttps://globalriskcommunity.com/members/KristiRohtsalu<div><p>For anyone who has followed the recent economic developments closely enough and has at least some theoretical background in finance, the huge debt hole of the so-called advanced economies hardly comes as a surprise. Right now, the “debt bomb” has the same as exploded in the eurozone and threatens to “blow up” the entire single currency area. <br /> <br /> The problem derives from the fact that over the past 30 years we have created immense amounts of debt backed by illusory assets. It has been aggravated by things like inequalities in the income, imbalances between countries, assets accumulating into a few hands. <br /> <br /> Smart men have observed that debt is a two-edged sword. (Citing <a href="http://www.bis.org/publ/work352.htm" target="_blank">BIS Working Paper no. 352</a>) Used wisely and in moderation, it is said to clearly improve welfare. But, when it is used imprudently and in excess, the result can be disaster. <br /> <br /> I have applied their conclusions in order to estimate the size of the debt hole for the eurozone as a whole, and for each single country in the euro area. To add some context, I have also included certain other EU countries (United Kingdom, Sweden, Denmark, Latvia and Lithuania) as well as approximate calculations for the US and Japan.</p><p><br /> The report is now available on the Financial Research eXchange: <a href="http://www.frxmarket.com/p/europes_debt_hole_numerical_assessment/159" target="_blank">http://www.frxmarket.com/p/europes_debt_hole_numerical_assessment/159</a></p><p><br /> It consists of the following sections:<br /> * Notes on data and methodology<br /> * Results and interpretations<br /> * Conclusions, (policy) implications and suggestions for investors </p></div>LOWEST CARBON TRANSPORT, PPhttps://globalriskcommunity.com/forum/topics/lowest-carbon-transport-pp2012-08-15T07:21:31.000Z2012-08-15T07:21:31.000Zmuthukal andy appanhttps://globalriskcommunity.com/members/muthukalandyappan<div><table border="0" cellspacing="0"><tbody><tr><td width="355" valign="top"><p><b>Lowest Carbon Transport, Power Plant</b><b><br /> 1/3 FUEL, Higher SPEED for same Ton-HP<br /> <i>VEHICLE…CO2e.. CO2e.. UNIT.. Speed<br /> …………….NOW… ANDY</i> .<br /> BIKE……. 2325 …..6.50 …G/KM… 120 kph<br /> CAR 2T….232.5…. 38.75..G/KM…. 200<br /> TRUCK15T..465.... 77.5… G/KM… .200<br /> RAIL 1KT. 13.95… 1.55… G/ t.km...600<br /> SHIP 1KT. 11.61… 1.29… G/ t.km...330.knt<br /> COAL…….. 7.0……2.33.. T/MW 100kg/MWh</b></p><p><b>.</b><b><br /> M Andy Appan, M E, 47 Yrs Expert<br /> Andy Technology Investment Invited</b></p><p><b>.</b><b><br /> INV 10 Mn$ Getback 20 Mn$ in 2 Yrs<br /> INV 50 Mn$ Getback 100 Mn$ in 2 Yrs<br /> INV 100 Mn$ Getback 250 Mn$ in 3 Yrs<br /> EMAIL: <a href="mailto:NIRAIMA1@GMAIL.COM">NIRAIMA1@GMAIL.COM</a></b></p><p><b> </b></p></td></tr></tbody></table></div>Import Operations and Compliance Benchmark Study: The Secrets of Import Successhttps://globalriskcommunity.com/forum/topics/import-operations-and-compliance-benchmark-study-the-secrets-of2012-07-10T19:25:58.000Z2012-07-10T19:25:58.000ZChris Herbert of Mi6https://globalriskcommunity.com/members/ChrisHerbertofMi6<div><p>Hello Community Members,</p><p>A 35 question survey given to 336 respondents from all industries associated with the importing of products to the United States. Through the results of that survey and the attached 30 charts, the steps to produce a cost effective and productive model of business are explained in detail. The research was conducted to emphasize the need for systematized data entry for the importing business, as they need to ensure accuracy and compliance for auditing purposes.</p><p></p><p>This report shows that there are many differences between the percentage of manual and systematized data entry procedures in the importing business. As may be expected there are many rules and regulations to the importing of goods into the United States and have become even more stringent since 9/11. Many businesses are still putting themselves at risk for being audited and even fined for not meeting those rules and regulations.</p><p>NOTE: This report is being provided directly to you (no need to register to access it) with consent from Boris who is a member of the SAP CFO Integrated Exchange Program. </p><p></p><p>Twitter: <a href="https://twitter.com/cfolob" target="_blank">@CFOLOB</a></p><p></p><p></p><p class="attachment"><a href="{{#staticFileLink}}8028395263,original{{/staticFileLink}}" target="_blank">CFO_IXN_Shared_Research_No16_American Shipper Import Report, Mar2012.pdf</a></p></div>Why Forecasts Fail. What to Do Instead (a research by MIT Sloan School of Management)https://globalriskcommunity.com/forum/topics/forecastsfail2012-05-01T21:05:17.000Z2012-05-01T21:05:17.000ZGlobalRiskCommunityhttps://globalriskcommunity.com/members/GlobalRiskCommunity<div><p>In 2006 the world economy was booming, partly on the back of triple-A investment innovations. Then, suddenly, the boom ended. What fascinates the authors is the fact that almost no one saw the 2008 economic crisis coming. In this article, the authors come to terms with the reality that, in economics and business, accurate forecasts aren't possible. Therefore, they say, managers need to develop a different attitude about the future.</p>
<p>==> <a href="http://bit.ly/WhyForecastsFail">http://bit.ly/WhyForecastsFail</a></p>
<p> </p></div>Driving ROI from Your Critical Business Applicationshttps://globalriskcommunity.com/forum/topics/roibizapplications2012-04-27T10:27:55.000Z2012-04-27T10:27:55.000ZGlobalRiskCommunityhttps://globalriskcommunity.com/members/GlobalRiskCommunity<div><p>In this white paper we look at the best ways to bridge the disconnects that exist in an organization between its executive management, operational management, measurement programs and technology management teams and how to best align technology investment with corporate strategy. </p>
<p>We also examine ways to improve the communication and relationship between your operational teams and IT. Finally, we take a look at how the right performance management strategy can drive alignment, focus IT investment, and accelerate business improvement in all areas.</p>
<p>==> <a href="http://bit.ly/ROICriticalBapps">http://bit.ly/ROICriticalBapps</a></p></div>Implementation Strategies for Fulfilling and Maintaining IT Compliance ( a 73 page e-book)https://globalriskcommunity.com/forum/topics/itcompliance2012-04-25T11:10:38.000Z2012-04-25T11:10:38.000ZGlobalRiskCommunityhttps://globalriskcommunity.com/members/GlobalRiskCommunity<div><p>In this four-part eBook, get a better understanding of the real-world issues associated with IT compliance, how they affect the business, and how you can simplify your compliance challenges. Get your copy today.</p>
<p>===> <a href="http://bit.ly/StrategyITGovernance">http://bit.ly/StrategyITGovernance</a></p></div>The Future is All Cloud for World-Class Finance Organizationshttps://globalriskcommunity.com/forum/topics/cloud-computing-for-finance-evaluating-security-risk-and-value2012-03-20T17:17:01.000Z2012-03-20T17:17:01.000ZBoris Agranovichhttps://globalriskcommunity.com/members/BorisAgranovich<div><p>Based on a recent survey*, 60% of the top-performing small and medium enterprises are choosing cloud computing over traditional on-premises solutions for their accounting and financial management system. Why are these companies choosing cloud computing?</p>
<p>Date: April 26<sup>th</sup>, 2012<br /> Time: 1 PM PT / 4 PM ET</p>
<p>Join us for "The Future is All Cloud for World-Class Finance Organizations" and learn why these world-class organizations are choosing cloud computing to drive competitive advantage, streamline their operations, and support growth.</p>
<p>Topics include:</p>
<ul>
<li>How cloud computing benefits companies with growing locations, chart of accounts, and employees</li>
<li>The total cost of ownership-- what are the real costs of running finance in the cloud</li>
<li>The top concerns including security, downtime and control - and how do you mitigate these concerns</li>
<li>How to think about customizing your software in a cloud world</li>
</ul>
<p>*Mint Jutras 2011 Enterprise Solution Study</p>
<p>Speaker: Cindy Jutras, President, Mint Jutras</p>
<p>Cindy Jutras is a widely recognized expert in analyzing the impact of enterprise applications on business performance. With over 35 years of corporate experience, Cindy has spent the past 6 years benchmarking the performance of software solutions in the context of the business benefits of technology.</p>
<p><strong>===> <a target="_blank" href="http://bit.ly/AllCloudFinance">http://bit.ly/AllCloudFinance</a></strong></p>
<p></p></div>Outsourcing Firm Meets Compliance and Significantly Lowers Operational Losshttps://globalriskcommunity.com/forum/topics/outsourcing-firm-meets-compliance-and-significantly-lowers2012-03-19T10:22:40.000Z2012-03-19T10:22:40.000ZRebecca Beardhttps://globalriskcommunity.com/members/RebeccaBeard<div><p><strong><em>HML—which specialises in financial outsourcing for financial institutions in the U.K. and Ireland—needed to improve operational risk management to avoid unnecessary losses and bolster compliance. The firm relied on spreadsheets and disparate databases to analyse performance and risk, but recognised the need for a more rigorous approach. This led to Microsoft Certified Partner Stratex Systems delivering StratexPoint—a risk management, governance, and compliance solution designed to meet the demands of the executive team, as well as the expectations of the Financial Services Authority. StratexPoint is powered by Microsoft Office SharePoint Server technology and was central to supporting a “risk-led” transformation at HML, with an improved risk framework and new focus on key controls. As a result, the firm has significantly reduced operational losses, as well as its regulatory capital.</em></strong></p><p><strong>SITUATION</strong><br />Financial outsourcing specialist HML is a wholly owned subsidiary of the Skipton Building Society in the United Kingdom (U.K.), working for more than 30 U.K. and Ireland-based financial institutions. On behalf of its clients, it manages more than 45,000 financial products and assets of approximately £45 billion.</p><p>In January 2008, HML appointed a new Chief Executive Officer who wanted to transform the business—in particular, the role of risk management in the firm. Gillian Weatherill, Head of Operational Risk at HML, says: “Our mission is to make risk management central to strategic and operational decision making. In doing so, our goal is to enhance profitability, lower operational losses, and reduce the economic capital held against the business. This initiative was also about laying the foundation for state-of-the-art, next-generation risk management capabilities, which support the needs of all staff and clients.”</p><p>Soon after Weatherill joined HML—which employs 1,600 people—the Financial Services Authority (FSA) carried out a routine site visit. This corresponded with a time of major market disruption due to the onset of the credit crunch and subsequent economic downturn. The site review resulted in the FSA recommending a Risk Mitigation Programme for HML aimed at enhancing the operational risk capabilities within a strict and challenging timeframe. Weatherill says: “We were already fully engaged with this work. We had 12 months to implement a major risk-driven change programme, much of which was scoped before the FSA visit.”</p><p><br />The operational risk processes inherited by Weatherill were disparate and silo based. Most involved using early versions of Microsoft Access database software and Microsoft Office Excel spreadsheets, which were updated periodically. A few people in the central risk team also used an existing operational risk solution. In a rapidly changing market—and with the economic downturn significantly impacting mortgage applications and arrears management— HML required a more agile, flexible, and practical solution. Weatherill says: “We needed information to be visible immediately, so our employees and managers could assess risks easily without tracking through numerous spreadsheets.”<br /><br /><strong>SOLUTION<br /></strong>After considering a number of options, HML selected Microsoft Certified Partner Stratex Systems. Its software solution StratexPoint brings together performance and risk management into a single, integrated solution.</p><p>Developed using Microsoft Office SharePoint Server and Microsoft SQL Server technology, StratexPoint combines the qualitative elements of performance and risk management with quantitative data. It is helping HML drive strategic execution and manage the trade-off between risk and reward in its services.</p><p>Andrew Smart, Founder and Managing Director at Stratex Systems, says: “StratexPoint provides enterprise-level capabilities for HML to monitor and analyse all of its organisational governance, objectives, risks, and controls using assessments and key indicators. With Microsoft, we want to drive a new approach to managing strategy, risk, and compliance.”</p><p>StratexPoint uses a range of features in Office SharePoint Server, including security, workflow, document management, and collaboration. It also offers powerful SQL Server reporting—along with its inherent application logic and visualisation techniques—to help HML align risk appetite, risks, and controls with its strategic objectives.</p><p>While the solution may ultimately be extended to as many as 2,000 users, Weatherill says she aimed to implement it to approximately 500 users initially, with different levels of permission for employees depending on their roles.</p><p><strong>BENEFITS</strong><br />HML is now aligning its risk exposure with its risk appetite. It has both reduced operational losses and improved handling of risk-related losses. FSA expectations have been met and the amount of economic capital held against the business has been cut.</p><p><strong>Operational Losses from Frequently Occurring Events </strong><strong>Fall</strong><strong> Significantly</strong></p><p>Using a combination of qualitative and quantitative dimensions, the risk management software is helping HML to define its risk appetite threshold. This measure is the amount of exposure or potential adverse impact from an event that the organisation is willing to accept or retain.</p><p>The company’s governance processes must focus on value, not just controls—especially given the lingering effects of the economic downturn. Weatherill says: “In the first year of our deployment of StratexPoint, we’ve considerably reduced the volume of frequently occurring operational loss events. It has improved our profitability.”</p><p><strong>Economic Capital Held Against the Business Reduced</strong></p><p>It is often difficult for managers to understand how capital is invested in financial institutions to support operational risk, which, in turn, needs definition. StratexPoint is helping HML drive a return-on-equity discipline into individual transaction decisions through greater use of objective risk-based pricing.</p><p>Weatherill says: “As a result of implementing StratexPoint, HML has managed to significantly reduce its economic capital—the amount held against risk necessary to survive in a worst-case scenario.”</p><p><strong>Software Helps HML Meet Compliance Targets Agreed with Regulator</strong><br />StratexPoint is unique in supporting leading best practice approaches to performance and risk management within an integrated, collaborative solution.<br /><br />Weatherill says: “Stratex Systems helped HML improve regulatory compliance at every step during the 12-month window to meet the targets set by the FSA Risk Mitigation Programme. Currently, we’re using many new document management and risk events processes with increased security requirements. Our systems are more robust than ever before.”</p><p>Sai Sireesh, Director for Risk and Compliance Solutions at Microsoft, adds: “The HML vision of integrating business strategy, capital allocation, and risk management is truly innovative. StratexPoint is uniquely positioned to implement this vision.”</p><p><strong>Risk</strong><strong>-</strong><strong>Aware Culture Embedded Within the Business</strong></p><p>The new performance and risk management software has enhanced strategy execution at HML. The improvement is not only in the quality and organisation of governance, performance, and risk-related procedures and policies, but also in the time saved.</p><p>A risk-aware culture is now fully embedded in the business. More importantly, it does not hamper new initiatives. Weatherill says: “None of our requirements have been compromised and now everything related to strategy execution is easily accessed in one place, which is significantly improving efficiency and performance.”</p><p><br />This is a certified Microsoft Case Study. View here: <a href="http://www.microsoft.com/casestudies/Microsoft-Sharepoint-Server/HML/Outsourcing-Firm-Meets-Compliance-and-Significantly-Lowers-Operational-Loss/4000009984">http://www.microsoft.com/casestudies/Microsoft-Sharepoint-Server/HML/Outsourcing-Firm-Meets-Compliance-and-Significantly-Lowers-Operational-Loss/4000009984</a></p></div>Dynamic Employee Stock Optionshttps://globalriskcommunity.com/forum/topics/dynamic-employee-stock-options2012-03-18T13:16:14.000Z2012-03-18T13:16:14.000ZJohn Olagueshttps://globalriskcommunity.com/members/JohnOlagues<div><p></p><p>Traditional employee stock options have structural problems which reduce their usefulness mainly because of the desire to reduce risk by the employees and the lack of understanding of the nature of their holdings. So I created what I call Dynamic Employee Stock Options, which correct all the short coming of the traditional ESOs.</p><p></p><p>A presentation of the Dynamic Employee Stock Options can be viewed at the following link.</p><p><a href="http://www.slideshare.net/OLAslideshare/new-dynamicemployeestockoptionspresentati-4-12038997">http://www.slideshare.net/OLAslideshare/new-dynamicemployeestockoptionspresentati-4-12038997</a></p><p></p><p>I will be happy to answer any questions about the concept at</p><p></p><p>John Olagues</p><p>504-875-4825</p><p>olagues@gmail.com</p></div>