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An interesting question was sent to me only the other day on Supply Chain Risk Management.

"Martin, do you have any specific risk frameworks or do you know of any good case studies that have been published on Supply Chain Risk Management (SCRM)?".

Supply Chain Risk Management is a complex and intertwined risk initiative to kick off and we have included a schematic which outlines some of the requirements that may need to be covered. We have also linked to an absolutely fantastic white paper that is

We recently worked with Aite Group on a benchmark survey exploring the reconciliation challenges facing financial services firms. The benchmark threw up a number of interesting findings around issues such as an over-reliance on manual processes, delays in onboarding and issues in handling non-standard and inter-system recs. In this first of a series of blogs on the benchmark findings, I will examine how a ‘one-size-fits-all’ approach no longer fits the bill.

Many banks are trying to use yesterday

Australia’s mining-relied economy is over

It is interesting to note that in his Jan 31st speech (see page 6-8) Gabriel Bernardino, Chairman of EIOPA, reiterated EIOPA’s intention to issue guidelines to national supervisors to ensure that from 2014 the supervisors and insurance entities are prepared for the Solvency II regime in a consistent way. 

The focus/priority of EIOPA now appears to be the aspects of the Solvency II regime that are management related, rather than Pillar 1 calculation related. The ‘certain important aspects’ covered

Operational risk management has moved beyond the simple calculation of capital requirements. Today operational risk managers need to have a proactive, holistic approach to operational risk to ensure they maintain their organizations’ profitability and reputation. Recent financial scandals have shown that operational risk could bring tremendous losses and not every firm is capable of recovering from them.

Paul Emerson answered a series of questions written by GFMI before the forthcoming Proactive

The Australian housing bubble is looking to be a bigger problem for that country than the U.S.' was in 2008-09. Australia differs from the U.S. both in terms of relative economic conditions and the health of its property markets. The mountain of debt is Australia is mostly private - housing - and dwarfs public-sector debt.

Australians have gone heavily into debt to buy houses that cost more than ever, especially the land component; and there's no sign this trend will end anytime soon. Mortgage de

The U.S. dollar is losing its status as the world's reserve currency. It's not happening all at once, but slowly and methodically as the dollar is used to settle international trade less and less. The Federal Reserve continues to rig the markets to foster weakness in gold (GLD) prices through a combination of continued ETF outflows and upheaval in the foreign exchange markets created by the debasement of the Japanese Yen (FXY) to support the notion of a strong dollar. This has sparked tremendous

A number of past financial crises have had their roots in countries pegging their currency to the U.S. dollar. The Thai baht was at the epicenter of the Asian Crisis of 1997/98. Argentina's hyperinflation of 2001/2 was also caused by a disastrous currency peg. Today there is not much left of that policy, but there are two notable exceptions and they are two of the most important currencies in Southeast Asia, the Singapore dollar (FXSG) and the Hong Kong dollar.

While their pegs are different in n

Vietnam's central bank cut interest rates again last week as inflation slowed, joining central banks from Sri Lanka and Australia to the ECB in easing monetary policy. It is seeking to spur lending and boost consumption after having to rein in a credit boom that has slowed economic growth to a 13-year low. But with the announcement that the Prime Minister's office had given its approval for the creation of the Vietnam Asset Management Company - a Vietnamese version of the Resolution Trust Co. us

In Asia, REITs are gaining popularity because both Singapore and Hong Kong have performed very well in recent years as recipients of real estate investors from markets such as China, the Philippines and Indonesia due in large part of central bank policy which target the U.S. dollar directly in the case of Hong Kong, or U.S. interest rate policy, in the case of Singapore.

REITs continue to attract investors because their dividends are more appealing than other investment opportunities in the curre

The average tier one investment bank today is dealing with a very complex trade processing infrastructure.  You’d expect the infrastructure to resemble a high speed rail line fully optimised to deliver trades from execution venue to settlement in the shortest possible time. The reality is that most banks are dealing with multiple branch lines, sidings and frequent level crossings which all serve to provide significant obstacles to the journey of the average trade. 

It is not unusual for trades to

Increasingly, organizations across all industries are charged with managing risk in a complicated compliance environment. Over at the Credit Union Times, Danny Baker, Vice President of Product Management, Risk & Compliance at Fiserv Inc., thinks he’s found a solution in the Cloud. In his recent article, “To the Cloud for Risk Management, Performance Analysis,” he argues that Credit Unions should turn to “Web-based or cloud portal” platforms that deliver enterprise risk management solutions.

Clou

As domestic and international trade continue to grow, companies are starting to consider the benefits of alternative sources of trade financing, according to David Hu, Managing Partner, IIG Trade Finance LLC.

“The cost of capital for banks, the traditional providers of trade finance, has increased tremendously. They also have other issues, such as the setting of LIBOR, which is being questioned right now. With the increasingly tighter capital requirements of Basel III, banks will have to tighten

My piece on Dodd-Frank and Title I and II in Bank Think section of American Banker. http://bit.ly/Zt3YnN

Risk Leadership: My Must Dos for Business Continuity Management

Thanks to Rita for getting me moving on a Business Continuity article.  A topic I have neglected in this newsletter for quite some time.  Perhaps it is because I feel Business Continuity Management (BCM) as a discipline has developed nicely over the past couple of decades and most practitioners don’t need too many tips in this area. 

Once I got thinking about it and had a chat to another of my readers (thanks Greg) it made me realise

According to The Economist algorithmic trading and high-frequency trading (HFT), virtually unknown until about six years ago, now account for almost 70% of the flow of orders on the main exchanges. Since the introduction of electronic trading there has always been more advanced solutions breaking through to help traders gain a competitive advantage. In today’s fast paced environment, however, HFT has the speedy edge. Can we level the playing field for traders working manually?

Regulators have alw