Wave of organisational change at major banks heightens operational risk exposure
Fed stress tests tilt towards data, governance, internal controls and modelling techniques
Difficulty of devising and implementing taxonomies leads major banks to start sharing ideas
“Incomplete demutualization” and financial market infrastructure: central counterparty ownership and governance after the crisis of 2008–9
This paper examines risk management governance challenges of the demutualized CCP ownership model and the incentives faced by “incomplete demutualization”, where clearing members remain the ultimate underwriters of CCP default risk.
The authors discuss the incentives created by the structure of CCPs’ default waterfalls, drawing out the role of transparency and governance in ensuring effective incentives.
Conduct risk is a hazy idea, whose success will depend on its effectiveness in managing risk
Operational risk practitioners from large banks working together on industry best practice
Content provided by IBM
Firms look to planning suites to get ahead of regulatory expectations
Banks call for audit trails and beefed-up role for risk committees
This paper identifies three steps in sourcing risk.
Employee perceptions are key to assessing risk culture at large banks
Content provided by IBM
Role left off UK controlled function list but too important to overlook
COO in interview cites equity-like evolution and regulation squeezing liquidity
Risk managers urged to focus on group dynamics
Governance failures and weak compliance at heart of $1.45bn fine
Lack of cyber expertise intimidating
But the high/low governance spreads of stocks are positively related with non-hedge fund ownership
New UK national standard will serve as a defence against charges of inadequate anti-bribery precautions
Insurers’ risk and investment models are becoming more sophisticated – but will greater complexity limit their usefulness? Blake Evans-Pritchard reports
Operational risk managers are heavily involved in new business and change management, but play a less conspicuous role in the front office, according to an Operational Risk & Regulation survey
Open source software can empower developers, increase innovation and improve competitiveness, and its popularity is growing tremendously. Open source now represents an average of 29% of the code deployed by IT and technology innovators are using 60%–80%...