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When your Parachute Doesn't Open

Do you have a plan for what to do when your parachute doesn’t open?


Well, if you do not, pay attention. Here is a 6 step checklist for what to do:

  1. Signal your Buddy.
  2. Get close with your Buddy.
  3. Link your arms through his/her straps.
  4. Open his/her chute.
  5. Let your Buddy steer the chute.
  6. Suggest that he/she look for an extra soft place to land (water).

There now. Don’t you feel safer?


You say you do not parachute jump? So what good it this?


Well, you must see that this is really good advice that can be applied

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Striking the balance in data governance

Despite recent news reports that the Basel III liquidity requirements are to be pared back, financial institutions are still facing vast regulatory challenges. They already have to hold more capital and liquidity, as well as report on this daily. Going forward, institutions will also have to demonstrate the processes and controls used to put together reliable information. Never before have risk and data management been so interwoven.

The real challenges facing institutions looking to showcase the

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Learn about Smart Investment Group LLC

We are SMART INVESTMENT GROUP LIMITED LIABILITY CORPORATION. This company was the brainchild and was founded by a group of really talented real estate professionals focusing on the goal of enabling financial independence through sound financial planning and real estate investment.

Today SMART INVESTMENT GROUP is a global company with an excellent reputation for getting results. We have become a leading provider of services to individuals and companies in the areas of Mortgage Services, Credit Ser

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Getting Real About Reputation Risk

Why should organizations be concerned about Reputation Risk?


As the world become more and more networked, more and more companies are exposed to a changing set of vulnerabilities. The landscape of risk has changed. No longer can any country or organization ignore the
happenings of 911, Bali and London.


In this new world, incidents can damage a good reputation purely because an organization can take too long to act decisively with problems. For instance a reputation damaging incident can become inte

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new hedge fund

Dear Investor,
A new hedge fund is opening in Hong Kong, offering the following
yields and risk:
1. $25K Minimum Investment
a) $12K remains in a CD deposited with HSBC. This capital is not at risk.
b) $13K is utilized by the fund for first three months of operations.
2. Yield is 20% APR ($5K per year), plus $250K after one year.
Note: this offer only applies to the first $25K. Amounts after this
will obtain different yields depending on the projects they invest in.
3. The Team managing the fund is experi
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Comments: 0

Creating a risk-focused organisation

The nature and type of risks facing the organisation:

One of the main challenges facing managers in today's constantly changing business environment is dealing with uncertainty and creating a risk-focused culture within their organisations. New technologies, new concepts (such as social media and web 2.0), and changing market dynamics are all presenting managers with both threats and opportunities.

This uncertainty has the possibility of creating or destroying customer value and shareholder value,
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Views: 759
Comments: 8
A company was fined a heavy penalty the other day for a a workplace accident that was caused by the company managers condoning illegal actions, because that is the "way we have always done it in the
past".

In this case an unlicensed driver of a forklift caused an accident.

The company decided to plead guilty being negligent in terms of the Occupational Health & Safety Act, expecting a thousand rand (ZAR) fine, but thecourt decided a fine of R10000 would be more appropriate. The judge's words: " Do
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In the automotive dealership space I have seen acquisitions turn into legal tribulations when after a deal is closed personnel related non-compliance issues pop-up creating huge, multi-million dollar headaches literally days after deal close.

What was found was a fundamental disregard for the human element in the valuation of a business...what have the people been up to that reinforces the business processes that helped make the business successful as well as what they have been doing on their ow
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Most of today’s organizations feel that if they have a “Risk department”, an “Internal Audit Team” and a “strong Legal team “they are safe against everything but is it the case. I say No, having a resource team strong in their defined skill set is only one aspect of an equation and the remaining aspect is time, budget and coordination between the 3 (Risk Management Group, Internal audit team & Legal team) because Governance, Risk Management & Compliance do not act in silos, they are very much in
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Comments: 2

First they need to have a product or service that people will buy. They need revenues.

Second they need to have the ability to provide that product or service at a cost less than what their customers will pay. They needprofits.


Once they have revenues and profits, their business is a valuable asset. So third, they need to have a system to avoid losing that assetbecause of unforeseen adverse experience. They need risk management.


So Risk Management is the third most important need of a firm.

And ther

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VaR: friend or foe?


For many risk managers, the recent financial meltdown has left them questioning the veryessence of risk modeling, used by many since the 1990s to measure their firm’sfinancial risk. Investment firms have traditionally relied on fantasticallycomplex mathematical models for measuring the associated risk in their variousportfolios, primarily to reassure investors that all is well. However, theworldwide events of the past 18 months have, arguably, left the reputation of riskmodeling in tatters. Here

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Most of Europe's biggest banks comfortably passed the Committeeof European Banking Supervisors’ recentstress tests and the sector has breathed a visible sigh of relief. However,plenty of uncertainty remains over banks that either squeaked by with justenough capital or passed but did not fully disclose the data that went intotheir calculations. The spectre of counterparty risk, last seen in dramaticform in the wake of the Lehman collapse, is not far from regulators’ andinvestors’ minds amid the c

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Shadow chancellor Alistair Darling has described how RBS was "a couple of hours" from collapse at the peak of the financial crisis. Speaking to Today presenter James Naughtie, he described a "frenzied conversation" with a senior RBS executive, asking him "what are you going to do?"

"Happily we did have a plan, and we stopped the bank from closing," he said.



http://news.bbc.co.uk/today/hi/today/newsid_8913000/8913921.stm
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Written by Xavier Bellouard, founder at Quartet FS

Monday, 16 August 2010

Most of Europe's biggest banks comfortably passed the Committee of European Banking Supervisors’ recent stress tests and the sector has breathed a visible sigh of relief. However, plenty of uncertainty remains over banks that either squeaked by with just enough capital or passed but did not fully disclose the data that went into their calculations.

The spectre of counterparty risk, last seen in dramatic form in the wake of

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Views: 92
Comments: 0
Definitions create the lenses through which we look at the world. The renowned psychologist, Abraham Maslow said that if the only thing you have is a hammer, you tend to treat everything as a nail.

I start every seminar and presentation with definitions, sothat I can establish a common framework through which I can work with my audience. In particular there are a number of definitions to describe reputation and reputation risk, each serving a slightly different purpose.

These need to be further e
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US banks under increasing scrutiny

Xavier Bellouard, co-founder of Quartet FSUS banks under increasing scrutinyNew regulation continues to be a top priority for banks with the regulators both here and in the US placing increasing scrutiny on bank’s risk management policies in an effort to avoid another financial crisis. A recent article in the FT highlights how the US regulators are clamping down even further, making banks perform tougher "stress tests" of their financial health and being stricter as to what risky activity they a
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Views: 74
Comments: 0

Many companies navigate the routine complexity of business with adequate or acceptable managem

Team Sport

Team Sport

ent, however it is the truly stellar company/s that excel not only on a routine basis but especially in times of crisis. It is select skills, experience and traits that are able to applied during times of critical decision-making that separate them from the herd. Specific skills and attributes are not something that can be learnt in the minutes and seconds required in order to apply to a criti

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Business and IT staff at Europe's financial institutions want more emphasis placed on risk management, with just a quarter confident that their existing IT systems are capable of using stored data to provide a full analysis across all business units, according to research commissioned by Oracle.


The survey of 228 business professionals and 222 IT staff in financial institutions across Europe, conducted by Vanson Bourne, indicates that existing IT systems are unable to deliver what businesses
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