Feature/Risk management/Risk management
Top 10 op risks 2018: organisational change
Banks fear pace of technological change will leave them exposed; others worry they could be superseded altogether
Top 10 op risks 2018: outsourcing
GDPR tipped to spark rise in disputes with third-party vendors
Top 10 op risks 2018: theft and fraud
Cyber theft fears widespread, but old-fashioned frauds dominate losses
Top 10 op risks 2018: unauthorised trading
Banks say threat from rogue algos outstrips that of human traders
Top 10 op risks 2018: regulatory risk
Fed’s cease-and-desist order against Wells Fargo spooks market
Top 10 op risks 2018: IT disruption
Fear of disabling cyber attack trumps risk of data theft
Top 10 op risks 2018: data compromise
Banks fearful of data breach missteps as GDPR looms
Top 10 op risks 2018: mis-selling
Speculation rife among survey participants over ‘the next PPI’
Pillar 2 moves to centre stage for op risk capital
US banks set for sharp falls in Pillar 1 requirements, but regulator-set add-ons cloud SMA’s impact
Exchanges and FCMs clash over bitcoin clearing carve-out
Market participants say CME, CBOE should clear bitcoin futures separately
FRTB: banks grapple with hard-to-model risks
Swiss, UK bank efforts to comply with regulators’ risks-not-in-VAR rules may be undone by transition to FRTB
Op risk modelling to survive move to SMA
Models will still be needed to measure forward-looking risks under Pillar 2
Trump tax reform sours US banks’ CCAR outlook
Tax changes hit bank capital ratios; Goldman, AmEx could fail Fed’s annual tests
Hackers’ jackpot: Mifid heightens cyber risk
Platforms and reporting entities develop individual solutions, but no silver bullet
Banks wrestle with conduct risk capital add-ons
Conduct risk-related additions to Pillar 2 capital raise questions over scope of UK’s Senior Managers Regime
Banks begin to model climate risk in loan portfolios
Environmental stress tests and scenario analysis reveal hidden risks
Risk culture: banks fall short in eyes of staff
Many risk managers believe their banks have work to do on understanding, measurement and management of risk culture
Soaring Fed Home Loan Bank borrowings spark systemic risk fears
Parallels drawn with Fannie and Freddie as commercial bank borrowing from FHLBs nears $500bn
Review of 2017: All sorts of volatility, bar one
Markets were oddly calm this year, while everything else was in motion
1MDB looms large in Asian banks’ war on money laundering
Banks in Asia-Pacific spurred by tougher enforcement and stricter AML rules
Basel delay does not ensure global FRTB consistency
A European Parliament draft would let supervisors decide response to P&L attribution test fails
Banks await Basel decision on legacy op risk losses
European banks could see big jump in capital if losses from legacy businesses are included in SMA
Banks eye synthetic securitisation to cut IFRS 9 loan-loss spikes
New structures would help mitigate estimated 44% increase in loan-loss provisions from revised accounting framework
FCMs hail new compression techniques
Advances by vendors and increased competition set to unlock more trades for tear-ups