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With ESMA’s (European Securities and Markets Authority) regulatory technical standards (RTS) codifying the European Market Infrastructure Regulation (EMIR) into an applicable set of rules entering into force on 15 March 2013, the implementation timeline for EMIR has now become much clearer.

The CCP registration process
Under EMIR CCPs apply for authorisation with ESMA to clear under EMIR. It is expected that this will happen sooner rather than later. CCPs will have the required paperwork ready to

Risk management is not about absolutes, it is about using a consistent analysis framework for balancing risk and cost on a common basis across the enterprise. Yesterday's announcement by the Transportation Security Administration (TSA) of their adoption of a risk-based approach is a long awaited practical application of enterprise risk management to security.

As April 25, 2013, the TSA will allow small pocketknives and an array of sporting equipment -- banned from aircraft cabins in the wake of t

A new renaissance in risk management

Social media sites have become a hot bed for thought leadership on a range of topics including risk, audit and compliance.  The article, "A new renaissance in risk management", captures the essence of those discussions and walks the reader through the future state of risk management.

This is an engaging article on the evolution of risk management and gives the reader insights into advances in risk practice.

Recently I read a comment in a LinkedIn Group that stated Chief Risk Officers should be given more authority in order to enforce sound risk management practices.  This made me raise my pen.

The notion of authority for a CRO worries me a bit along the lines that the risk management function and internal audit should be separated. 

I am more of the school that CROs sell benefits, facilitate better practices and influence good decision-making as broadly as they are able while the assurance function (

A question from a client today kind of goes like this:

"Is it possible to plot three types of risk variables in one chart and if so, what kind of risk chart could we use to achieve this goal?"

This is an interesting query for sure and risk charting is an area of risk management which is fascinating but can be quite complex. There is certainly more than one answer to such a question but today we'll take a look at Polar Charts as a solution.

More information on the Polar Plot can be found by [ clicki

A great TED video, this one by Ernesto Sirolli who tried a different approach (listening) to aid small rural and 3rd world communities, inspired this month's musings.

Those of us interested in EU risk regulation may be interested in the Action Plan that the European Risk Forum (ERF) issued a couple of months ago. The ERF Action Plan builds on and integrates the Commission Smart Regulation agenda, covering issues such as the EU Law on Administrative Procedures; public consultation, impact assessment and regulatory benefits; the role of the Commission’s Chief Scientific Advisor; and the application of the precautionary principle. 

The ERF is a think-tank committ

This is your opportunity to see the World Risk and Insurance News reports you may have missed:

• As insurers were praised for handling claims from Hurricane Sandy, banks were blamed for holding up payments to victims. (http://bit.ly/YLadOp)
• U.S. employers are revealing strategies to avoid the increased costs of employee health insurance under Obamacare. (http://bit.ly/121PsUU)
• Dr. MaryRose Reaston from Emerge Diagnostics discussed the consequences of the Mandatory Reporting Act on workers comp claims

Financial institutions have to optimize ‘Risk – Return’ and diversify their portfolio. The next presentation of a study illustrates the power of Gold as one of the best asset classes to optimize ‘Risk – Return’ in a given portfolio.

Just widen your knowledge about monetary gold by examining the next presentation I gave on June 19 2012 as a 'Johan de Witt Lecture' before 60 in gold interested actuaries of the Dutch Actuarial Association (Actuarieel Genootschap, AG).

The Dutch Actuarial Associat

Perennial mystery of understanding Trading Markets continues to this date. Does forecasting work?

Yes, forecasting works, as can be seen just at a glance, from the attached ppt file covering period of 2009-2012 for Gold, Crude Oil, EUR/USD, GBP/USD and AUD/USD.

Much higher no. of forecasts which have come true (in blue boxes) as compared to failed forecasts in red colored boxes proves that it is possible to understand market movements to a great accuracy.

Linkedin%20TrackRecord%20RahulC.ppt

Comments

Show us your best presentations or any other work, perhaps a publication by posting a new blog or a discussion and attaching your document.

The best presentation will receive the GRC award and the author will be given our Media Pass to  attend one of many Risk Conferences we are partnering with.

p.s.  Do not submit anything that you should keep confidential under any law. For example, do not submit information subject to a non-disclosure agreement, any inside information, or any proprietary or

BREAKING NEWS: Reed Hastings, the CEO of Netflix an active Facebook user commonly posts about the success of Netflix, often thanking users of the service for their loyal support, which sounds like the first line from a book on how to correctly promote a product using social media. But Hastings may have become a little too comfortable sharing certain aspects of the company’s information. In July of this year, he posted to his 240,000+ Facebook subscribers that “Netflix monthly viewing exceeded 1

A recent poll on whether enterprise risk frameworks should employ a risk taxonomy or not, seems to have turned out an encouraging result. Over 93% of risk practitioners voting gave a thumbs up for risk categorisation, with only a handful of souls repelling the concept.

In this posting we look at four steps to bring a risk taxonomy into operation and a Dendrogram Cluster Report model is demonstrated that shows how risk can be prioritize within a taxonomy.

[ Click here to continue reading ]

Is your Business Model Sinking?

I have been reading a lot of posts on many different risk forums of late and it appears that the Frequency x Magnitude argument for measuring operational risk, is a stubborn pandemic and a failing that is going to be nearly impossible to move on from.

How do we really measure operational risk?

[ Click here to continue reading ]

After EMIR, Basel III and Dodd Frank, MiFID II is now on the horizon. Are you keeping up with the latest regulatory developments in the market?

Alarmed by the impact of the latest financial crisis, regulators globally have released a set of new regulations. While most financial institutions are already working diligently on the implementation of EMIR, Basel III and Dodd Frank, the change in the EU Council presidency to Ireland and the current consultations around MiFID II give further incentives

Over the last few days, several people have discussed various scenario analysis techniques with me and going on general opinion, this risk assessment technique is very popular among operational risk analysts. Definitely no doubt there, but what scenario analysis means to one analyst, can often be something entirely different to another.

What does scenario analysis really mean to operational risk analysts?

Click here to continue reading

For all those who can read Dutch and are interested in technical analysis, we offer this trading update prepared by LOEF Technische Analysis BV.

The detailed research report is to download via the following link

LOEFTTT030213.pdf