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In my last blog and On-Demand Webinar “Presenting Risk Management to the Board,” I was asked for help identifying government regulations that hold Boards responsible for Enterprise Risk Management (ERM) compliance.

Definition: First some background, the SEC Proxy Disclosure Enhancements rule defines ERM compliance as extending the board's role in risk oversight to the threshold of material impact of the risk regardless of the level. Boards of Directors were previously only responsible for CEO- le

With the recent introduction of recording for voice and SMS on mobile phones for trading activities in the UK, many technologists were raising the issue of “Big Data” as additional voice recording requirements contribute to the growing repository of data being held by their firms to meet with regulator requirements. Although regulators around the globe are driving for greater visibility and a more comprehensive record of past trading activities, this additional data can also serve a purpose in o

Syndicated Content Originally Posted on the Numerix Blog

http://blog.numerix.com/public/2012/10/a-new-quantitative-approach-advanced-exposure-and-cva-for-exotic-and-vanilla-instruments.html

By now, we all realize that financial practitioners around the globe are facing increasing challenges when it comes to computing complex risk and credit exposure calculations for both their exotic and vanilla derivative instruments. Given all we've learned about the importance of calculating counterparty risk p

Syndicated Content from the Numerix Blog - Find Original Post Here

$30,000,000,000,000 - This huge figure is the estimated additional liquidity financial institutions worldwide will need if the current proposal by the International Organisation of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS) on margin requirements for non-centrally-cleared derivatives were to be implemented.

The estimate was calculated by the International Swaps and Derivatives Association (ISDA) for covering the requirement for a universal two-way exchang

Some risks are cyclical in nature which can be modeled on a risk clock.

In this blog we build up a risk clock and look at why businesses are not good at forecasting cyclical risk events.

Click here to continue reading

One of the mandates of the 2009 G20 summit was to ensure the electronic trading and central clearing of standardised OTC derivatives. OTC or ‘over-the-counter’ is seen as the antonym to exchange-traded or ‘listed’ in most literature. Now, global regulators seem intent on removing OTC from the trading landscape.

Shifting bilateral OTC activity onto electronic platforms – organised trading facilities (OTFs) in Europe and swap execution facilities (SEFs) in the US – is the way regulators plan to ach

Our partners at marcus evans conducted an interview with Mr. Christian Ferrer,,Director, Head, Global Commodities Trading Market Risk at Bank of America Merrill Lynch and a Speaker at the marcus evans 5th Annual Risk Management in Energy Trading Conference recently and kindly gave us a preferential permission to publish it on our website.

I am a former Stock Options Market Maker on the CBOE and the Pacific Stock Exchange. I and some others used a strategy of identifying mis-priced calls and puts. We sold the over-priced and bought the under-priced and then hedged to reduce risk.

After noticing that the millions of employees who have been granted equity compensation by their employer/company and their advisers have little understanding of the value that these employees have, the risks of losing that value and how to manage those po

To start the process of Risk Culture Building, an organisation first needs to get an accurate picture of the current level of risk culture maturity in the organisation. Various attempts have been made to do this and generally most revert to some kind of questionnaire or checklist approach linked to a scoring sheet that is eventually tabulated to quantify an overall score which is linked to a perceived level of maturity. In some cases organisations call in consultants who use an interview process

In their new book Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage (2011), McKinsey senior partners Scott Keller and Colin Price make some interesting observations about organisational transformation and the achievement of excellence.

Leaders wanting to „beat the odds‟ must find answers to questions related to:

• Dramatically (and quickly) improving the organisation‟s performance
• Avoiding the pitfalls of transforming an organisation
• Ensuring that performance improvement

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Just one year ago you were probably aware of ISINs, BICs and/or SWIFT codes. But LEI, USI or UPI would probably have elicited a mere shrug. In the regulated world of OTC derivatives, these acronyms are the foundation for stringent and consistent regulatory oversight.

The Dodd-Frank Act mandated the creation of the Office of Financial Research (OFR) with the task to collect data from financial market participants to allow for enhanced visibility and transparency of a highly interconnected global m

 This paper explores the current state of website security and how you can help  protect critical data and build trust with customers. It begins with Secure Sockets Layer (SSL) encryption, the technology that addresses the  most obvious and oldest problem in online business -the susceptibility of sensitive data in-transit to interception by cyber criminals. 
===> http://bit.ly/securityTrust

The first shoe to drop was government regulations holding the Board of Directors personally responsible for the effectiveness of enterprise risk management programs at their organizations. Boards are given a choice between proving their risk management programs are effective or disclosing their ineffectiveness in risk management to the public. If they do neither, it is considered fraud, as not knowing about a risk is no longer a defense.

What does enterprise risk management effectiveness mean? No

Early in 2012, SAP commissioned an independent study to understand how companies are preventing access risk and fraud.  A vast majority of the 183 research respondents confirmed that managing access risks were "very" or "extremely" important to senior leadership in their organizations. Yet the same group found it challenging to establish and maintain a program for