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Latest on Risk management
Lehman’s ghost: how three CCPs anchor models to crash
The Lehman crash still haunts the margin models of LCH, CME and Eurex, albeit in different ways
Swift user break-ins a ‘repeat business’ for hackers
Cyber thieves have accessed the interbank messaging system through small, developing world banks
JP Morgan cuts op risk capital by $12.5 billion
Operational RWAs down to $387.6 billion from $400 billion in the second quarter
Latest
Quotes
With compliance problems, you often find out when it’s too late. And when it’s too late, banks have paid significant amounts of money.
UBS CRO Christian Bluhm on why he spends half his time monitoring op risk and compliance issues
People think that because the results come from complex computer algorithms, they don’t have to do a lot of thinking and also they can trust them more. But in reality, the opposite is true. These are black boxes. Problems can arise if you use them blindly
Vijay Nair, Wells Fargo, on the need for machine learning explainability
[Boards have] gone from turning up once a quarter for a prawn sandwich to being down in the weeds of what you do
Stephen Creese, Citi, on risk committees in banks
Editor's Choice
Big firms deflect banks’ questions on third-party risks
From exchanges to software sellers, big players hang back on due diligence questions, banks say
Big Figure
A quick Trim?
Twenty-one European lenders were deemed non-compliant with the European Union's internal ratings-based credit modelling standards following the first phase of an industry-wide assessment. The European Central Bank released the interim results of its multi-year targeted review of internal models (Trim) at around 65 banks in June
Read the full article7 days in 60 seconds
CCP resolution, margin and Libor’s modelling threat
The week on Risk.net, September 8-14, 2018
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Comment
Credit data: zeroing in on supply chain risk
Model risk in the transition to risk-free rates
Our Take
Counterparty credit exposure won't spark the next Lehman
Bank boards: goodbye to the prawn sandwich brigade?