The failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole. The British Academy on the causes of the Credit Crunch. Read more in the Risk-Based Performance Management book #RBPM
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Banks continue to increase their social media presence, especially on Twitter. But for all the talk of 24/7 omnichannel experiences, the number of institutions offering a genuine round the clock, real-time Twitter service to customers remains small. For today’s social-media savvy customer, that simply isn’t good enough.
But things are changing. Nationwide, the UK-based building society, has become the first in the UK market to offer 24/7 Twitter support through ‘@AskNationwide’. This leaves other
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To future economic historians, the Credit Crunch might be the defining moment that separates the industrial age from the networked, digitized (or whatever name they assign to it) era we moved into in the early part of the 21st century. The Risk-Based Performance Management book. #RBPM
Many business cases for Enterprise Risk Management programs begin with what senior management can expect in terms of return on investment (ROI). While ROI may not be the best indicator of ERM success (it’s tough to quantify the monetary value of risks you’ve mitigated), there are simple and direct steps you can take to demonstrate the efficiency your program will gain through the implementation of an ERM system.
On average, risk managers spend 62% of their time on tactical, rather than strategic,
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
They say there are two things you can be certain of in life – death and taxes. While you can’t prevent either, you can pay your taxes and you can look after things so that you can take care of yourself as best as possible. What happens if you’re struck down with a very bad illness? What happens to those who are dependent on the income you bring in? Making sure that all your dependants are well-looked after financially is very important and it’s something that we all need to consider at some stag
Lack of transparency makes risk, performance and compliance information hard to discover, collect and maintain. Within every organization, governance areas are conducting activities, each based on different assumptions with different standards, all of which contain a risk component.
While these are typically not thought of as risk activities, when the responsibilities of each governance area are compared to a risk based process – identifying & assessing, mitigating, and monitoring – you find that
Macroeconomic risks are often overlooked by SME managers when conducting risk assessments. Macro risks like wars, credit crises, market changes and technological disruptions can have catastrophic implications for SMEs.
"...small-medium sized businesses (SME), public sector entities, the communities in which they operate, and society at large are exposed to many factors that are outside the control of executives and policy makers. These exposures span a variety of influences ranging from comm
WHAT ARE SAFE FINANCIAL PLANS?
As we all know, the world would love to have safer financial products such as investments, pensions, annuities, places to put reserves for later calls on insurance claims, and ways to stabilise asset prices and the burden of borrowing costs as economic conditions change.
So what is preventing us from having all this?
After years of research and development by my group of senior financial services people drawn from universities and the financial services industry - and
It is intriguing to see how often individual branches or geographic divisions in a bank have the tendency to re-invent the wheel.
Why would a bank choose different organizational structures and processes in branches or locations? Why should a credit card application, for example, take 60 minutes in one country and just a few minutes in another? Or why are customer payment orders restricted to electronic channels only in some regions while others use a range of channels?
On the one hand, Lean and
A few years ago the IRS offered a tax amnesty program for US citizens who failed to declare assets held in foreign bank accounts. This came on the heels of a highly publicized legal action against UBS. The IRS forced the Swiss based bank to turn over the account information of US citizens. The IRS was clamping down on tax evaders, exploiting the protection of Switzerland's bank secrecy laws to hide income and assets. The IRS was looking to determine if FBARs had been filed by the banks American
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Russia’s economy has slowed in step with the rest of the BRICs (Brazil, Russia, India, China). As the global economy entered recession in 2008, the BRICs were one of the few remaining bright spots still generating economic growth. For a variet
Governance functions are designed to manage risks that organizations face in operational and back office silos - financial misstatements, fraud, vendor management, disaster recovery, and other activities are all designed to address a subset of an organization’s risk profile. The concept of Enterprise Risk Management is not to create another function that exists in parallel to these areas, but rather creates a standardized methodology and language to objectively prioritize across functions and le
We have put our good mother through a lot over the past few million years. Ever since we walked out of the great rift the biospheres dominant species has really left a mark. I know that mark is but a tiny spec on the archaeological record of the earth which spans a few billion years but our impact is unmistakable.
I guess it started with the invention of hand tools, fire, wheels, shelter construction, water cultivation and agriculture. You can’t forget hunting in packs, weaponry, domestication o
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.
In the pantheon of risk factors, reputational risk is the classic riddle wrapped in a mystery. Its obtuse nature is due in part because it can spring from a multitude of internal and external factors
Conflict Minerals Reporting Requirement Struck Down
Received a timely Good Friday Alert from Nixon Peabody about a recent district court ruling on regulations concerning Conflict Minerals. Conflict minerals are mined in areas where conditions of armed conflict exist. The minerals, extracted with forced labor under conditions employing human rights abuse, is common in the Democratic Republic of the Congo. Rebel groups use the proceeds from the sale of conflict minerals to finance armies to enri
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.“You have to be prepared,” said Robert Seiwert, a senior vice president with the American Bankers Association. “If you
I often wonder, what if Basel II capital accords had been in place prior to the Great Recession?
Could the devastating crisis fueled by the serial pops of credit bubbles rumbling through the dismal landscape of G20 principalities been avoided with better capital adequacy safeguards?
Could the precious Post Cold War peace dividend been preserved; had the fiduciaries of global solvency not toppled the dominoes of economic prosperity and political stability through extreme selfishness and irratio
Crown Equity Holdings Inc. (OTCQB: CRWE) has been experiencing momentum that coincides with the development of the CRWE-PR Network
The network is a portal for local news, city data and content of interest within the community. Communities are searchable by name and zip code.
National, world, sports and general topics are also covered with up to the minute updates across all sites. The CRWE PR Network offers - local business listings, restaurant deals, coupon deals, classified ads, real estate l
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