Blog

Data has rarely been so in-demand by banks, especially for building the required credit models to satisfy regulators and internal compliance requirements. But rigorous risk models, as the backbone of an enterprise-wide risk management framework, require lengthy and well-populated sets of data. And it’s a fact of life that, across banks of all sizes – and for many kinds of reasons – data is sometimes incomplete and difficult to compile.

Difficult, yes, but not impossible. Missing data is rarely a

In previous blogs, I've covered the differences between ERM and GRC offerings. One critical difference I'd like to explore more fully is the concept of Software-as-a-Service, especially as it pertains to the IT departments and legal councils charged with approving your ERM or GRC solution. Due to Software-as-a-Service's relatively recent entry into the Business to Business marketplace, it's not uncommon for risk managers to be concerned, even fear, how solutions that are not exclusively hosted o

[Editor’s Note: Organizations have become myopic with GRC solutions, and they can no longer see the forest through the trees. In my prior blogs, I pointed out that over confidence in technology point solutions has been happening since the Great Wall of China, where corporations have not been investing enough in broader ERM programs that can detect non-technical failures like employee collusion, or vendor performance or loop-hole issues. The Board needs to know their true risk monitoring position

As organizations turn to Enterprise Risk Management (ERM) software to automate and enhance aspects of their ERM Programs, it’s time to take a critical look at the ERM and GRC marketplace to determine where gaps exist between the current offerings and the needs of risk managers.

Many GRC software tools on the market today offer a separate ERM module at an additional cost. If the goal of enterprise risk management is to take traditionally silo’d information and communicate it with a single framewor

Actually, it’s not an API, it’s the lack of one that can make the CIO cry.

API (Application Programming Interface) refers to something quite technical and involves creating a technology capability which ensures the bank can be connected and flexible. They typically serve as a facade to complex back-end systems which provide the products and services delivered to customers. APIs are constructed to expose a specific business function, and harnessing their power enables banks to focus on creating en

Risk comes in all forms and shapes...whether it's what we can or can't say in a meeting, the hiring process, how we handle an altercation in the work place, ect. These various scenarios require us to have a certain level of understanding into how to deal with them, and one of them that I believe is critical is having an understanding of the background of the situation, and the tools to best solve the equation to lead to the best solution possible. With all of that being said, this leads me into

Quad-Party Clearing – a buy-side focused clearing model – was widely perceived as an innovative solution for the clearing obligation under EMIR (European Market Infrastructure Regulation). The benefits for buy-side firms include efficiency, cost and risk reduction.

However there’s a growing concern that these are outweighed by cost and risk factors of market infrastructure providers and sell-side institutions. For example, many experts anticipate a collateral crunch as a consequence of clearing o

Employment is the engine of any economy. The Hudson Report on employment trends is a key economic indicator that helps gauge just how well the engine is running.  

Published annually, Hudson’s Salary Guide is a compensation survey that offers valuable insight into salaries presently being offered to candidates. The report includes salary survey data on a variety of professional fields including: accounting, advertising, communications, finance, healthcare, human resources, legal, marketing, sale

In every customer communication there’s one simple message: “I - the customer - have something to say.” But is anyone listening?

It's as simple as ABC.

A is for ANYTIME and ANY WAY. Banking customers talk to their banks at any time they need them, not just 9 to 5, and not in ways that banks can always control. Customers expect the freedom to connect with their bank – via the telephone, email, social media and any other channel that serves their purpose. Being easy to talk to is a critical par

It is still probably too early to derive meaningful conclusions from the impact of Swap Execution Facilities (SEF) on trading behavior. However, European regulators and counterparties can learn from the US experience as they implement the European equivalent of SEF – Organized Trading Facilities (OTF) as part of the Markets in Financial Instruments Regulation (MiFIR).

Although central clearing provides counterparty credit risk mitigation, SEF trading – because it will not become mandatory until t

The 5 trading experts featured in this publication were selected based on experience, thought leadership, nominations from industry peers, and their storied success within the finance industry.

Download the report to hear their answers to the following questions:

• What is something unique or interesting about yourself?
• What is an accomplishment you are most proud of within the financial world?
• What is an accomplishment you are most proud of outside of the financial world?
• What makes your firm’s tradin

Systemically Important Financial Institutions (SIFIs), by simply being so labeled, have been forced into the financial services and public spotlight. The debates regarding SIFI status range from the likelihood of lower costs of capital, because of being identified as too big to fail, to whether SIFIs should be forced to make divestments to reduce their size and complexity to the point they are no longer systemically important. Within that particular debate the benefits to the sector of economies

Integration is a hot topic this year for risk professionals. In PRMIA’s 2013 survey of buy-side risk management trends, a lack of front-to-back integration of systems emerged as the second biggest technology challenge, pipped only by the need to create a complete view of risk from multiple risk systems.

Poor integration compromises risk management quality

Why the need for front-to-back integration? The financial and Eurozone crises have highlighted the need to manage risk more proactively and in a

As financial institutions have become more complex, so have their risk management systems – and that’s a problem.

Organisations that have grown through acquisition and diversification typically find themselves running a huge number of different systems: whether for different asset classes, different types of risk and/or for different operating entities.

That complexity is causing major issues. Research carried out by the Professional Risk Managers International Association (PRMIA) in March 2013 re

Regardless of the drama and conjecture within the debates there is one certainty already evident – local supervisors are carrying out spot checks on Systemically Important Financial Institutions (SIFIs), to ensure that their risk management policies and practices are comprehensive, documented and are being complied in practice. 

Can you Benefit from a Supervisory Spot Check? Download whitepaper to find out. 

It is common for departments or individuals to maintain a repository in isolation, feeling

Risk Leadership: Risk - What It All Boils Down To

Earlier this year I read Administrative Behaviour by Herbert A. Simon which was first published in 1946.  I highly recommend Simon’s book for risk professionals because it only mentions risk a few times, yet it describes so clearly the challenges of organisational success. 

When you consider the challenges Simon sets out, it helps clarify how risk professionals should aim to assist organisations through the application of risk management principle

Will peer-to-peer lending change the personal loans market beyond recognition? Or will increasing regulation and overheads erode its differentiators? Traditional savings products are not attractive at the moment, with typical interest rates for one-year cash ISAs at less than 2%. At the same time, peer-to-peer lenders such as RateSetter and Zopa suggest their lenders can receive long-term returns of 4% or higher. So it is no surprise that the UK peer-to-peer lending market is growing exponential

Two important events happened in November 2013. First, the Fed released its latest stress test definitions, to be used as the basis of the Comprehensive Capital and Analysis Review (CCAR) report, due in March 2014. Second, Thor returned to cinema screens in the action sequel, ‘The Dark World.’ So, why are these two things collectively important?

While seemingly unrelated, Thor is actually a remarkable and timely metaphor for modern regulatory practice: protect the system first, the system’s parti

With Halloween behind us, the calendar turns to the most critical part of the year for Enterprise Risk Managers in the retail industry. An operational risk failure at this time of year can result in millions of dollars in losses, and it’s as important as ever to manage the reputational, strategic, and supply chain risk that will make or break a holiday season.

With that in mind, our friends at the Risk Management Monitor recently visited an Allianz survey of British retailers, which offers a few

How do you get the balance right between customer service and security? The battle between banks and fraudsters is ongoing, with banks losing millions each year through fraud.

In addition, the rise of digital and mobile banking over the past few years has led to banks investing heavily in their fraud and security measures. These authentication devices alongside integrated malware detection and fraud monitoring systems can be a barrier to a satisfying, simple customer experience. How do banks prot