It is always interesting to me when I read yet another risk survey which identifies “Reputation Risk” as the number one or at least one of the top risks of concern for leading executives. Reputation is not a risk. It is an intangible asset and its value to you is enhanced or damaged by something that you or your organisation does or does not do. Any failure to adequately manage finances, personnel, IT security (and the list is infinite) may result in damage to reputation.
Therefore, what is an
One of our business analysts recently came to me with a particularly troubling conversation he had with a prospective client. The client reported to him that while 6 months ago the appetite for ERM had been strong, the enthusiasm and excitement for the program had since waned and the risk manager was now preparing to take “micro” steps forward over the next several years.
This account is far too common for enterprise risk managers in today's environment. Hired into an energetic and new function,
In December 2013, the New York Jets played the Oakland Raiders at the Met Life stadium in New Jersey in temperatures close to freezing. Those of us at the game dressed for deep winter and watched the fourth quarter in the falling snow. Two weeks later, the Jets played their final home game in the same stadium, in 71 degrees, with the crowd wearing t-shirts and tailgating like it was late summer.
The Super Bowl will kick off at the Met Life stadium on February 2, 2014. This presents a preparation
Do you want to attain Information Security Management and looking for the best documentation kit that can help your organization to achieve ISMS certification without making any hard efforts for the same if your answer is yes then you must adopt ISO 27001 manual right now which is a part of standards of Information Security Management Systems or ISMS. The standard was first came into existence in the year 2005 and from that time, this ISO 27001 manual is being preferred more by business entrepre
[Editor’s Note: Organizations have become myopic with GRC solutions, and they can no longer see the forest through the trees. Our new series, brought to you by the LogicManager Analyst Team, will keep you up to date with real world examples of risk management failures, and how ERM could have prevented them.]
Over 300,000 West Virginians are still waiting to use their tap water for cooking, cleaning, and even bathing after the discovery that a chemical used in coal processing was allowed to leak i
Running a business in the global marketplace has never been as demanding as it is today. The internet exposure has even given entry level businesses a chance to have global visibility in a very short time. This means increased competition along with endless opportunities and markets. Nevertheless, competition and standing out from the crowd requires a business to create its own value and stay away from clutter. This is done by creating recognition through associations and accreditation's like th
The Security and Exchange Commission announced its examination priorities for the New Year, and Enterprise Risk Management heads the list. The priorities, selected by Senior Staff from the National Examination Program, aim to address areas of weakness that threaten fair, orderly, and efficient markets.
On the subject of Enterprise Risk Management, the NEP states that it will continue to meet with boards and high level senior management to discuss the firm’s Enterprise Risk Management process, esp
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
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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
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