The way that we calculate capital requirements is one of those embedded assumptions that has existed for so long that we fail to think about whether it really makes any sense or not. And if you do stop and take a step back, you will realize that it actually does not necessarily make much sense.
We calculate capital requirements looking backwards, when the thing that we will need capital for is in the future. That backwards capital requirement is only broadly close to being correct for firms th
I came across a great presentation on Reputation Risk from Martin Davies of Causal Capital. It outlined the many dimensions of this onerous corporate threat. It offered a definition, a list of risk factors, its impact on a company’s financial condition and proposed frameworks to mitigate its effects.
The tough conditions in the credit markets require small businesses to communicate and demonstrate their credit worthiness to satisfy exacting credit risk standards of lenders. Credit channels are open and loans are being made but strict federal regulations and heightened risk aversion by lenders places additional burdens on borrowers to demonstrate they are a good credit risk.
On 27th February 2014, the National Aeronautics and Space Association (NASA), in a joint mission with the Japan Aerospace Exploration Agency (JAXA) , launched the Global Precipitation Measurement Core, a satellite based observatory designed to provide next generation observations of global snow and rainfall.
The parallels between space exploration and risk management are many and varied, and a mission designed to track precipitation and increase the predictability of global weather patterns is e
Today’s banking industry must deal with an evolving regulatory landscape by developing new and innovative strategies for acquiring and optimizing capital. Banks must find a new way to raise capital, maintain a functional capital structure, and continue providing the products and services their customers demand while staying profitable. The new deadline for implementing the Basel III capital requirements makes capital management the most important issue for banks today.
Bogie Ozdemir, Vice Preside
According to a report published by Technology Business Research last week, IT investment among North American banks is on the rise, with one of the main drivers for this being data management. This echoes findings of research SunGard recently conducted into risk management trends and priorities among more than 750 of our banking customers in 60 countries. Over 50% of respondents confirmed that their IT budgets for risk management has increased or remained stable since 2012. In the US, 65% of ban
Today’s banking industry must deal with an evolving regulatory landscape by developing new and innovative strategies for acquiring and optimizing capital. Banks must find a new way to raise capital, maintain a functional capital structure, and continue providing the products and services their customers demand while staying profitable. The new deadline for implementing the Basel III capital requirements makes capital management the most important issue for banks today.
Bogie Ozdemir, Vice Preside
Enterprise Risk Management 2012 (NYC, October 17-18, www.erm-usa.com) is North America's premier ERM Congress addressing the critical challenges being faced by FIs, energy utilities and corporations of all sizes.
If you haven't registered your place yet, here are 10 reasons not to miss this years Congress:
The Dodd-Frank Act and Basel III are going to change the way banks raise, allocate and manage capital. Banks need to prepare for these changes now and develop effective strategies for achieving capital optimization and sustainable return on equity. The GFMI, a marcus evans, Capital Adequacy and Strategy Conference, September 12-14, 2012 in New York, NY, will help banks to understand what the legislation means for capital adequacy, as well as what they need to do to achieve the optimum level of c
Managing a profitable balance sheet is more challenging than ever. With Basel III and the more immediate Dodd-Frank regulation on the horizon, a tool such as FTP is vital to ensure an effective centrally managed liquidity strategy. Post-crisis, whilst the economic situation is improving, allocating sufficient liquidity costs quickly and efficiently to the correct business-line is paramount.
Karin Bergeron is a trader on the CVA desk at Scotiabank. She is responsible for pricing and hedging CVA as
The Chancellor George Osborne has warned the European Union that Britain will refuse to sign up to "idiotic" proposals under Basel III.
George Osborne has warned the European Union that Britain will refuse to sign up to "idiotic" proposals that would water down tough international rules on bank capital.
This is a very concerning development and quite astounding actually. Let's ponder on the drop out of the UK from Basel III, just as a idea for a moment: [click here to continue reading]
The European Banking Authority released a statement indicating that gaps exist in the capital standards for about 20% of the regions top 48 largest banks. Meanwhile, the Bank for International Settlements has posted a relatively positive report on Asian banks loan reserve practices.
Are Asian banks in front of the game for capital management than their European counterparts?
Almost every business leader will say that people are their most important asset, but few do anything about it. If you are going to take this principle seriously then human capital planning is crucial.
The Human Capital Plan is an important tool that organizations use to drive focused actions that can ensure goal achievement and business success. It allows organizations to assess, plan for, and respond proactively to its human capital challenges and needs. It helps shape the organization by buil
Learn how financial organizations can embrace a portable, standards-based architecture to create a predictable, sustainable millisecond response time environment that will increase revenue generation and opportunity optimization.
Capital markets have complex, data-intensive front-office environments that change in milliseconds. To survive and differentiate themselves, companies need predictable, high-performance technical solutions. They also must control costs. Until now, satisfying both of the
Focusing on technological innovation, business strategy and geographical markets, this guide provides thought leadership on how capital markets firms can capitalize on real-time data and leverage new risk strategies for a trading advantage.
A couple of weeks back I was approached by a HFT magazine editor and he asked me whether I would be interested to write down some of my experiences in HFT. As I am not directly participating in the midst of HFT at this point, I had to give it quite some consideration. Why would I do this? Placing myself in a vulnerable and visible position is not my first nature. Still I strongly believe in taking away the mystique or even – allow me – hysteria regarding this type of Capital Markets business. I
In spite of the considerable investment and development around the preservation of assets and the mitigation of risks across conventional corporate assets such as facilities, information, equipment and products, the same methodology and motivation remains far less advanced in regards to human capital.
Before any organization even explores risk management strategies for their human capital it is fundamentally important that they first determine the value at risk. Not only is it a case
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