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Building confidence

Luxembourg is bracing itself for boost in the market, with major legal changes expected to encourage new players into the alternative market

No op risk surprises in QIS 3

BASEL - Some 265 banks in more than 50 countries were absorbing the contents of the key QIS 3 survey, which seeks information on how the complex Basel II capital pact would affect them, as Operational Risk went to press.

Economic capital: towards an integrated risk framework

Performance and bonuses are increasingly being assessed on profits after a charge for economic capital allocations. This has increased line managers’ interest in economic capital. As a result, risk managers must ensure that economic capital allocations…

Factoring in stock options

In the wake of recent corporate scandals, support has spread rapidly for including the cost of employee stock options as an expense item in corporate income statements. David Rowe argues that while some reform is appropriate, present trends could end up…

The industry’s worst nightmare

Counterparty credit risk is the derivatives industry’s worst nightmare. Ever since the early 1970s, when over-the-counter derivatives began their 30-year march to replace gold as the world’s foremost financial hedging tool, it is a nightmare that has…

Clear in present danger

Energy companies are crying out for clearing solutions to reduce their counterparty credit risk. James Ockenden looks at new initiatives from London-based power exchange UKPX and German firm Clearing Bank Hannover

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