Feature
City firms focus on business continuity as Iraq war increases terrorist threat
The threat of terrorist attacks in response to US and UK military intervention in Iraq has highlighted the need for financial institutions operating in the UK to have suitable business continuity arrangements, a senior UK regulator said in March.
The data deluge
Instant messaging and e-mail are critical tools for traders. But the need to oversee and archive the huge volumes of data they create has become a serious operational risk issue for broker-dealers. Clive Davidson examines the ways firms are dealing with…
Profile: JP Morgan treasury services moves beyond measurement
"We've got to an environment were there are enough scorecards and metrics in place," says Angus Grandfield, head of operational risk for the treasury services division of JP Morgan Chase's Europe, Middle East, and Africa region.
Widening the net
Compliance
Buy side faces increased op risk scrutiny
NEW YORK - Buy-side firms' ability to effectively manage operational risk is attracting more scrutiny from sell-side colleagues, according to a panel held on March 26 at Risk Waters Group's OpRisk 2003 USA conference in New York.
Fractured consensus
The dispute between the US and many of its allies over Iraq has eroded US commitment to multilateralism and damaged the credibility of multilateral institutions. How will this affect Basel II?
Op risk charge up for grabs again?
The charge for operational risk may be altered in the upcoming third consultation paper (CP3) from the Basel Committee on Banking Supervision, due out in May.
IT infrastructure influences credit ratings, say agencies
NEW YORK - Credit rating agencies, including Standard & Poor's (S&P), Moody’s Investor Services and Fitch Ratings, are now more frequently assessing buy-side technology in terms of supporting operations and, in some instances, sources of operational risk.
Debate and controversy mark Op Risk 2003 events
Delegates at the fifth annual Operational Risk and Risk magazine operational risk conferences in London and New York this March were treated to what one speaker described as a "smorgasboard" of discussions on the subject. Attendees could choose from…
Berating the raters
Last year the rating agencies were slammed in certain quarters for reacting too slowly to market events; this year, there are complaints that the agencies have overcompensated by reacting too fast. So what level of responsiveness will satisfy the bond…
People moves
People
Wall Street’s Battle With BCP Regulation, Round Two
Under increased scrutiny, the industry has banded together to prevent what it sees as costly and constrictive business continuity regulations.
The Mastery Of Disaster
New technologies, clear plans and practice can help any Wall Street firm better prepare itself for a disaster the size and scope of the events of Sept. 11, 2001.
Sweating the Small Stuff
Preparing for catastrophes is only part of it. More frequently (albeit less extensively), firms are testing their readiness for water main breaks, subway strikes and power outages.
Book extract > Regulatory Issues on Credit Ratings
The art (and some science) of credit rating has been in place, at least in the US, for almost a century now. In the Foreword we learned that credit rating as a process has its humble beginnings in the early 1900s in conjunction with theburgeoning market…
Book extract > Regulatory Use of Credit Ratings: Implications for Banks, Supervisors and Markets
Barbara C. Matthews is Banking Advisor and Regulatory Counsel to the Institute of International Finance, Inc. (IIF). The views presented in this chapter, however, are her personal views and do not necessarily represent the views of the IIF or its members…
The new orthodoxy
Introduction
BaselAlert.com launches new books section
BaselAlert.com today launches a new section of the website devoted to books . This section will contain special offers, book reviews, and selected excerpts.
The power of the portfolio
To observers, credit portfolio modelling appears particularly dependent upon making approximations. Derivatives traders may study finite difference schemes, but at least the pricing models are finely calibrated to the market. Asset managers might have to…
Pointing the index finger
Concerns over manipulative energy price reporting has led to a call for price index reform. But many market participants are apprehensive about disclosing detailed confidential data to a third party. James Ockenden looks at developments
Greening the markets
Environmental risks are increasingly being recognised as important financial issues, but the markets are still some way from rewarding companies for good environmental performance, as Kevin Foster discovers
Models of good behaviour
The development of new models that describe the real dynamics of energy prices have to take into account the behavioural aspects of market players. The problem is how to quantify these aspects. Maria Kielmas reports
Pumping up prices
Gasoline prices in the US hit all-time highs in March, and the price is expected to remain high throughout the summer. Kevin Foster looks at the contributing factors
Optimise this
One of the reactions to recent energy trading difficulties has been a shift away from speculative activities towards portfolio optimisation, but what does the term really mean, ask Tim Essaye and Brett Humphreys