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Creating an Effective Vendor Risk Management Program

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. In either case, the more deeply an organization understands its partners’ business, the easier it…

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Costs of Operational Risk Mismanagement

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…

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Chess: A Valuable Teaching Tool for Risk Managers?

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…

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Bank Regulations in Hong Kong

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…

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Operational Risk: Key Risk Indicators (KRIs)

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.…

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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…

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OCC Finalizes Heightened Standards for Financial Institutions

On September 2, 2014, the OCC issued final guidance around strengthening governance and risk management practices of large financial institutions. The guidelines apply to insured national banks, insured federal savings…

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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…

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Black Swans or Wishful Thinking and Misinterpretation

By Geary Sikich 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…

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Validating Business Continuity Plans Using Failure Point Exercise Methodology

 By Geary Sikich Imagine that your plan has been implemented as it was designed. You and your organization carried out the plan following every detail that was contained in the…

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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…

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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…

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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…

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Lawmakers’ Global Competitiveness Argument Is a Red Herring

The House Oversight and Investigations Subcommittee will hold an important hearing titled “The Growth of Financial Regulation and its Impact on International Competitiveness” today. While the topic is certainly one…

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To Regulate Foreign Banks in the U.S., ‘Trust, but Verify’

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…

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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.…

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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…

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Global Regulatory Changes Signal a Tectonic Shift for Derivatives Trading and Banks

By: Julian Fisher The center cannot hold! The day of banks making over-size profits from trading OTC derivatives, which comprised some 37% of banking revenue in 2010, is over. Regulatory…

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Complexity as a Means of Portfolio Diversification

A portfolio is a collection of securities: stocks, bonds or treasury bills. The calculation of the expected return of a portfolio is straightforward. The corresponding standard deviation can be used…

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Comparison between the PRM and FRM Certifications

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…

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