Embracing a New Approach to KYC Client Reviews

Written By: Joe Dunphy “The need to do KYC client reviews is indisputable. However, the current approaches used to complete these are most definitely questionable.” Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations dictate that financial institutions must ensure…

CCAR Stress Test Results Released on March 11, 2015.

Written by: Somanshu Jend Supervisory Review Readiness post CCAR March 2015 Results. A preliminary inspection of the CCAR Stress Test Results released by Federal Reserve Board on March 2015. Raises some questions that the BHCs management should be asking while reviewing CCAR results.…

GARP Conference Keynote Address: Mark Flannery

During Global Association of Risk Processionals (GARP) 16th Annual Risk Management Conference in New York, Mark Flannery, Director, Division of Economic and Risk Analysis, U.S. Securities and Exchange Commission delivered a keynote address. Below are a few highlights from his…

OCC Risk Perspectives – Darrin Benhart

On February 25, 2015, I sat among a crowd of risk managers, bankers, consultants, technology vendors, and academics at the Global Association of Risk Processionals (GARP) 16th Annual Risk Management Conference in New York. Darrin Benhart, Deputy Comptroller for Supervision Risk…

Is Your Revenue Reporting System Error Free?

Written By: Christina Duren Revenue reporting is a basic performance measure of a company, but it can be complex to manage and has the greatest risk of errors and inaccuracies. According to a survey conducted by RevenueRecognition.com, revenue reporting is…

Value Addition Through Enterprise Risk Management

Written By: Sonjai Kumar This article discusses the role of enterprise risk management in creating and protecting the shareholder’s value in an organization as opposed to the traditional view of protecting the down side risk. The objective of risk management is not…

Views on Risk: Data is King

Below are some views from John Bottega, on risk around data and risk management: 1. What are the biggest data-related challenges that you expect to see in risk management for banks? What are some opportunities that banks should take advantage of?…

Creating an Effective Vendor Risk Management Program

Regulations including Basel II, SOX, PCI-DSS, HIPAA, GLBA and FFIEC guidelines, among others, mandate that risk-management policies extend to third-party vendors. There are additional motivations to assess third-party risk, including protecting a company’s reputation from being damaged by another company’s actions.…

Costs of Operational Risk Mismanagement

Causes of Operational Risk The Basel Committee on Banking Supervision (BCBS) defines operational risk “as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes…

Chess: A Valuable Teaching Tool for Risk Managers?

How does chess resemble risk analysis? Are there similarities, for example, between the way a chess player studies opponents’ games and the way a risk analyst studies clients’ portfolios? Igor Postelnik takes a comprehensive look at chess strategy and discusses…

Bank Regulations in Hong Kong

Hong Kong’s Financial Center Hong Kong is a major international financial center, comprising an integrated network of institutions and markets which provide a wide range of products and services to local and international customers and investors. Hong Kong’s financial markets…

Operational Risk: Key Risk Indicators (KRIs)

Key Risk Indicators Defined Key Risk Indicators (KRIs) are an important tool within risk management and are used to enhance the monitoring and mitigation of risks and facilitate risk reporting. Operational risk is defined as the risk of loss resulting…

Liquidity Coverage Ratio: Final Rule

The Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System (the agencies) are issuing a final rule that implements a quantitative liquidity requirement consistent with the liquidity…

Account Relationships with Third-Party Payment Processors

FDIC Clarifying Supervisory Approach to Institutions Establishing Account Relationships with Third-Party Payment Processors On July 28th 2014, the FDIC issued a Financial Institution Letter (FIL-41-2014) that clarifies the supervisory approach to institutions establishing account relationships with third-party payment processors. As…

The Volcker Rule: Mission Impossible

Politicians have given a lot of attention to the Volcker Rule in testimonies to the House and Senate in early February and even in Federal Reserve Chair Janet Yellen’s first semiannual monetary policy report to Congress. Not a single politician,…

Derivatives Transparency Is Essential to End TBTF

Thomas Hoenig of the Federal Deposit Insurance Corp. recently highlighted a number of key items left in regulators’ agenda to end “too big to fail.” Speaking at the National Association for Business Economics conference in Arlington, Va., Vice Chairman Hoenig…

Why the Bank Leverage Ratio Is Important

Mayra Rodríguez Valladares is managing principal at MRV Associates, a New York-based capital markets and financial regulatory consulting and training firm. She is also a faculty member at Financial Markets World. In speaking about the leverage ratio, an extremely important…

7 Ways to Improve Regulatory Document Management

By: Marc Murphy At a recent AML event, a speaker from a global financial institution claimed that regulatory coverage of documentation was a hugely problematic and thorny issue for his organisation. In fact, judging by the nodding heads in the audience,…

Risk Management- Loses Metamorphosis

By: Tamer W Francis Boulos In this short article, I am presenting the seeds of a new Risk Management ideology, which I named Loses Metamorphosis, which could be the fourth risk management science aside with the main three Risk Management…

Comparison between the PRM and FRM Certifications

The current environment requires many people working in financial services to have a good understanding for various components of risk management (e.g. operational risk, credit risk, market risk, etc,).  Risk management associations are a great venue for acquiring this knowledge.…

Black Swans, Shapeshifters and Flexibility

By: Geary Sikich and John M. Stagl It seems that there many experts today who are jumping on the bandwagon and laying claim to some aspect of, or permutation of, the “Black Swan” concept. I recently read about someone claiming…

GLC Europe – Solvency II Forum 2013

GLC Europe is delighted to invite you to the Solvency II Forum 2013, on 21st and 22nd of November 2013, in Vienna at Fleming’s Deluxe Hotel. Over the last years both large and small insurance companies had to face with…

How ORM Add’s Value to the Business

The identification, assessment, measurement monitoring, and reporting of Operational Risk presents several obstacles; however, it can be worth the trouble. Please use the link below to open the document which provides a high level overview of a few of the key…

Risk Culture and the Human Factor

By:  Geoff Trickey Over three years, PCL psychologists have been researching human factor risk. This is a topic with a chequered and confused history. Neither academic psychology nor the risk professions had established a coherent conceptual framework or made any…

Decoding Entropy: A Credit Risk Modelling Perspective

By: Tejas Mhaskar  Abstract: Since its evolution, the concept of Entropy has been applied in various fields like Computer Science, Quantitative Finance, Physics etc. The definition of Entropy has slightly different meanings depending on the field of science to which…

Governance and Records in Closely-Held Companies

By: Valerio Giannini Corporate governance isn’t important until it is. The greatest hazard of poor governance is compromising protection against personal liability. In addition a review of corporate governance records is high on the due diligence lists of lenders, investors…

Risk Management Events

Attending risk management events is an effective approach to staying current on developments in risk management. Going to an event allows you to exchange ideas with your peers, hear different opinions, get out of the office, and have fun for…

Unrealistic Scenarios – C’mon Man!

By: Geary Sikich The next time you hear that one of your scenarios is unrealistic and that the events could not have occurred in the sequence that are being depicted you might direct your audience to Japan. Imagine a scenario…

Top 10 Risk Management Blogs

Our mission at RiskArticles.com is to promote effective risk management and governance practices in the financial services industry. We do this through our several article posts. As part of our knowledge gathering we read several risk management blogs. Listed below…

FATCA – The Best Opportunity for KYX!

By: Marc Murphy (Fenergo) Having attended the FATCA Forum event in London two weeks ago, one word kept cropping up time and time again in relation to FATCA – not from vendors (surprisingly enough) but from compliance and tax experts…

When is a Black Swan Not a Black Swan?

By: Geary Sikich Introduction There seem to be a lot of sightings of ‘black swans’ lately. Should we be concerned or are we wishfully thinking, caught up in media hype; or are we misinterpreting what a black swan event really…

Accessing Capital: Improve the 5 Metrics that Matter

By: Mary Ellen Biery, Research Specialist, Sageworks, Inc. A recent study found that while nearly 91 percent of private-company owners were enthusiastic about executing growth strategies, only 51 percent reported having the necessary financial resources to do so. Furthermore, the…

Reputation is Expensive

I have recently conducted a survey to gauge views around which risk is more costly to a firm if completely ignored. Although none of the risk types should be completely ignored, it was interesting to find out what people would…