Social media reputation damage high on risk managers’ list of concerns
October 25, 2011 - Social media and the potential they pose to reputation risk and protection of confidential information are significant risks to European businesses, according to a survey by the Federation of European Risk Management Associations in cooperation with the Institute of Risk Management (IRM).
Moody's Analytics Launches Enhanced Probability of Default For Banks Dealing with Basel III
October 17, 2011 - Moody's Analytics, a leader in credit risk measurement and management, today announced Through-the-Cycle EDF™ (Expected Default Frequency) measure, a quantitatively derived credit risk estimate that dampens the short-term volatility arising from the aggregate credit cycle, providing more stable default probabilities than traditional point-in-time (PIT) credit risk estimates.
SEC Sanctions Direct Edge Electronic Exchanges and Orders Remedial Measures to Strengthen Systems and Controls
October 13, 2011 - The Securities and Exchange Commission today sanctioned two electronic stock exchanges and a broker-dealer owned by Direct Edge Holdings LLC for violations of U.S. securities laws arising out of weak internal controls that resulted in millions of dollars in trading losses and a systems outage.
Thomson Reuters Survey Finds Hedge Funds Require Flexible Technology to Meet Regulatory Overhaul
October 11, 2011 - Thomson Reuters today announced the results of a survey on the impact of managing risk and compliance in response to new regulations. The survey, carried out during a Thomson Reuters Forum held in September, polled over 90 members of the buy-side trading community on the need for hedge fund managers to establish institutional quality compliance programs to attract investors.
Firms still need to do more to limit risk-taking, Fed study says
October 7, 2011 - Financial firms and banks still need to do more to curb risky behaviour through their bonus payment infrastructures, a study by the Federal Reserve (Fed) has revealed. A report by the Fed showed that some changes have been made with senior bankers now deferring up to 60 per cent of their bonuses - at some institutions professionals have more than 80 per cent of their additional compensation deferred.
The RiskBusiness Regulator Survey shows some cause for concern
October 7, 2011 - In July and August 2011, RiskBusiness International undertook an electronic survey amongst risk management professionals working in the global financial services industry to rate their regulator, anonymously, on its performance in several categories relating to operational risk supervision and oversight: Clarity and completeness of regulations; conformance of regulations to Basel II and Solvency II; approachability; detailed knowledge of operational risk management; consistency; level of guidance provided; fairness; degree of home-host regulator interaction; industry discussion and consultation; and staff turnover.
UBS trading scandal investigation finds risk systems ignored
October 6, 2011 - Risk systems did pick up suspect activity at UBS related to the recent loss of $2.3 billion through unauthorised trading but the information was not properly acted on, according to an internal investigation.
Canadian regulator urges fellow regulators to use technology to monitor trading risks
October 6, 2011 - Global regulators should use technology to collect data on events such as the "flash crash" and use that information to regulate trading risks, according to the head of Canada's self regulatory agency.
