In an earlier blog post, the idea of managing both quantity and quality of risk was introduced.
But what exactly is Risk Quality?
At the most simple level, risk quality can be indicated as the rate of risk per unit of activity.
Risk Quantity = Business Activity Level x Risk Quality
So the suggestion is that a risk management system should pay close attention to that rate of risk as well as the Quantity of risk. See Riskviews Post on risk quality for further discussion.
But the risk manage
We've launched World Risk and Insurance News as a neutral online video news network for risk, insurance and financial service professionals. The plan is to have regular, even daily, programs with short video news and info segments from locations around the globe. How would you leverage World Risk and Insurance News (www.WRIN.tv) to better marketing and information-sharing efforts.?
I am doing research for an upcoming article I am writing on Business Model risk. I would be interesting in hearing members' thoughts on the following:
1. Is this an activity that should only be confined to the Strategic Planning phase or is it a core activity of Risk Management ?
2. How do you identify businesses that are performing strongly but that may have a Business Model that is fundamentally flawed ?
3. What types of action can be taken to have Business Model risk debated. The rise of subp
StratexSystems is running a series of 4 'How to' webinars around strategy and risk management. These events will be a combination of theory, based on the Risk-Based Performance Management approach, and technology.
Details are available at http://www.stratexsystems.com/stratexsystems-blog/2011/9/13/strategy-and-risk-how-to-webinar-series.html
I thought I would post a quick note about a recent blog post one of our clients wrote about their risk management initiative and the benefits it has brought.
In this post, the Head of Operational Risk talks about risk management becoming invisible in the organisation and the challenges of proving (to regulators) that risk management is been undertaken if indeed it does become invisible.
I think it is worth a read - http://www.hml.co.uk/blog/2011/09/23/risk-management-driving-value-from-a-long-game
In this month's newsletter I have expanded on how to incorporate risk appetite into strategy development using the Four Quarters Strategy Framework. It contains a selection of high level considerations that can be debated at the strategy development phase.
As most readers here will no doubt appreciate, risk management issues in many organisations across the globe - large and small - still continue to be raised after the strategic plan has been developed (and sometimes after it has been approv
In ancient times, the ultimate collateral was the debtor’s personal freedom. A person who defaulted on a debt became an indentured servant of the lender in the case of default. This idea persisted in one form or another until the 1800s when debtors prisons became out of favor. The US was one country that led the way on this movement. The US has always had a much easier attitude to bankruptcy. There has always been much less stigma attached to bankruptcy along with the easier legal climate.
So the
UBS has remained oddly silent since its brief press release announcing a $2 billion loss from unauthorized trades in London. The announcement chopped some $5 billion from the bank’s market cap, and neither CEO Oswald Grübel nor any other senior executive has addressed the matter.
It’s instructive to compare UBS’s public response to that of other banks involved in similar situations.
When Jérôme Kerviel’s trades racked up losses of $7.2 billion for Société Générale, its CEO, Daniel Bouton, faced th
In my recent blog, I pointed out that regulations are constantly changing, becoming more complex.
Global banks will find that proving transparency across multiple products to the regulators is a big challenge. All tier one banks operate with at least some legacy systems and some manual data sources, and can’t deliver all the required information in real time.
But transparency is key. Post-2008 liquidity crisis, global regulators are prescribing a series of new, more in-depth, regulatory returns.
In Europe, most banks have already implemented Basel II. The next step is complying with Basel III, which has significant add-ons compared to its predecessors – including much higher capital and liquidity requirements – specifically shining a torch on the so called global systemically important financial institutions (GSiFis). In the US, the Basel III compliance process is further complicated by the concurrent implementation of the Dodd-Frank financial-overhaul legislation.
Regulations these day
Risk Management is all about managing the uncertainty around achievement of objectives. So all risk assessments should start with the objectives of the organisation, business unit, program, project, process or system that is the subject of the risk assessment. Strategic Risk Management is the management of uncertainty around the strategic objectives of the organisation. Doing this well requires skill, experience and commitment of the most senior people in the organisation.
When I recently read “R
The blog address is:
macro-economic-design.blogspot.com
There, and on links there, you can learn what is going on in this cutting edge approach to risk elimination and the management of residual risk in Housing Finance, Sovereign Debt, Final Salary or Defined benefit schemes, reduction of Beta value without losing vital performance, and more.
Also some background on how I managed to out-predict and out-perform institutional investors for two decades in the UK, always out-performing their managed
Communicating corporate objectives and the strategic plan is a key consideration in the governance of an organization. Promoting effective communication throughout the organization is essential as it establishes a “Tone from the Top” that is consistent with good governance.
Communicating corporate objectives is easily facilitated through enterprise risk management processes. Most companies have a succinct statement of corporate strategy that includes a statement of objectives. Objectives emanate
Special risk management Financiele dagblad OUtlook,
Goede enquete op website financieel dagblad. Risico verantwoording versus risicomanagement.....
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The music business has been and is undergoing crazy changes that is shaking up all the major and small players in the industry. The problem is not the evolution of a different way of manipulating and consuming media but the failure of the player to foresee and yield to these changes.
In studying entrepreneurship last semester, I came across the concept of "creative destruction" which for example had eliminated the elevator man and made extinct the typewriter. On the other hand, the same concept
Why the London riots created a greater business travel threat than a terrorist attack
Introduction to the London riots business travel threat
If you have business travel to London, you need to read this article. In this article you will discover why the London riots created a greater business travel threat than a terrorist attack. We will examine the threat posed by the London riots and demonstrations, terrorist attacks and resulting travel delays, disruptions and changes. At the end of this arti
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