Risk indicators
No link between geopolitical risk signals and returns – hedge fund
Gauges of geopolitical risk are better at predicting volatility than equity returns, research from XAI finds
Substitutability cap spares JP Morgan higher capital add-on
Three other US banks – BNY Mellon, Citi and State Street – also hit the cap in this year’s G-Sib assessment
Big data challenges: unlocking opportunities for banks to rethink their data structures
Revisions to banks’ mandatory capital requirement regulations, to be implemented in a few jurisdictions in January 2023 and globally in 2024, will present these institutions with a massive challenge as the volumes of data they must manage and analyse…
Securities market frenzy drives up mid-sized European banks' systemic risk
Nordea’s underwriting activity jumped by almost 7,000% in 2020
Systemic indicators surged at European banks in 2020
Values used for 10 of 12 systemic risk indicators climb year-on-year
False start for foreign banks under Fed’s tailoring rule
Delayed reporting form means requirements for Barclays and Credit Suisse could change twice in 2020
US G-Sibs grow and multiply ties with other banks
Big eight banks grow by 1.5% in aggregate in Q2
EU banks increase systemic footprint
Values used for seven of 12 systemic risk indicators climb year-on-year
Stoplight system could spot imminent meltdowns – study
Proposed traffic light system sifts through transaction data for signs of trouble
New risk data signals lower EU G-Sib scores
Aggregate 20% drop in level 3 assets and 7% decrease in intra-financial system liabilities reported in 2017
Evaluating the risk performance of online peer-to-peer lending platforms in China
The objective of this paper is to select effective risk indicators and thus establish a risk index system of P2P platforms so as to evaluate the risk performance of these platforms in China.
G-Sib swap portfolios reveal transatlantic divide
EU banks record 16% fall in non-cleared swaps, while US dealers see 9% growth
Barclays trims connections to other financial firms
Intra-financial system assets and liabilities drop 19.6% and 13.5%, respectively
Investors warm to quant tools to gauge political risk
Many funds have lost confidence in traditional ways of measuring political risk
Fed examiner calls on banks to rethink KRIs
Most banks fail to establish explicit link between KRIs and identified risk exposures
Why the Priips risk indicators hurt structured products
Risk ratings ignore soft barrier protection and make differentiation difficult
Priips stakeholders in final push for German-style risk ratings
European authorities’ risk scale “too conservative”, says trade body
Mitigating rogue-trading behavior by means of appropriate, effective operational risk management
This paper discusses the violation of applicable firm guidelines by individuals employed by a bank or financial institution and suggests specific metrics to identify and prevent such behaviour.
EU risk ratings for structured products divide issuers
Consultation responses expose fault lines between banks and insurers
Sigor assesses QIS data but capital rule changes will wait
Basel Committee considers recalibrating the simpler approaches to op risk measurement but says changes will happen later rather than sooner
The urge to converge
Convergence is a clear goal for many in the industry, but uniform implementation is proving tricky, finds the latest survey from OpRisk & Compliance and Ernst & Young
Using transaction data to measure op risk
Since 1999, Peter Hughes has led a team of op risk specialists that has studied transaction processing environments in global banking organisations. The focus was on examining and understanding the causes of operational failure. The information and…
Profile: Dresdner makes loss prevention a new priority
Operational risk management is a management programme, not just a modelling exercise, according to Jonathan Howitt, director of operational risk at investment bank Dresdner Kleinwort Wasserstein in London.
Approach with caution
Indicators of operational risk are not for the faint of heart, nor are they necessarily bearers of good news. But used properly and effectively, they can help businesses identify potential losses before they happen.