Risk Management
Over 750 Banks at Risk of Failure over Next Two Years, says Invictus
January 31, 2012 - Despite last year's decline in US bank failures, at least 758 lending institutions are at risk of failure over the next two years, according to an analysis by Invictus Consulting Group, which conducts stress and sustainability tests on all FDIC-insured banks for regulators, banks and investors.
Banks Must Update Their Default Management Capability Warns Formicary
January 26, 2012 - Formicary Ltd, a software and systems integration provider, is stressing the importance tobanks of maintaining their Default Management systems and procedures. The advice comes as banks facestringent new clearing house requirements in 2012. In anticipation of the extensive preparation needed by banks to meet the regulations, Formicary has expanded its dedicated team that designs and implementsDefault Management Systems at member banks.
Dodd Frank and EMIR unlikely to reduce systemic risk, says industry
December 5, 2011 - OTC clearing reform will not reduce systemic risk, according to 50% of market participants surveyed at a recent industry debate. Nevertheless, 79% have identified the need for collateral optimisation within their organisations, driven by regulatory changes on the horizon.
UBS admits to breakdown in risk control systems
October 25, 2011 - In the wake of its recent $2.3 billion loss through unauthorised trading, Swiss bank UBS has admitted that internal controls were "not effective".Today UBS posted a third quarter net profit of $1.1 billion, down 39% on the same period the previous year, after the scandal allegedly involving London-based trader Kweku Adoboli.
ISACA IT Risk Management and Audit Guidance for Assurance Professionals
January 24, 2012 - Integrating IT risk and enterprise risk management is essential to the overall health of an enterprise’s infrastructure. To provide audit and assurance professionals with the most up-to-date guidance on IT auditing, risk management and strategic alignment, ISACA, a nonprofit association serving 95,000 IT professionals in 160 countries, has developed new audit/assurance programs:
More cloud, increased investment in risk management and continuing concerns over regulation
December 1, 2011 - Linedata (NYSE Euronext: LIN), the global solutions provider dedicated to the investment management and credit industries, today announced the results of its Annual Global Investment Management Survey. Key findings include the recognition of regulation as a present and future challenge; a clear move towards cloud computing and hosted environments; plus risk and trading systems as top IT priorities. Despite a small number of downbeat pronouncements, the majority predicted market growth in 2012.
Nine out of 10 Bankers Not Confident over Stress Testing
October 25, 2011 - Sybase, Inc., an SAP company (NYSE: SAP) and industry leader in enterprise and mobile software, today announced results of a survey showing that more than nine out of 10 capital markets executives lack confidence in bank stress testing, while more than 75 percent are struggling to capture trading system data.
Federal Reserve Board proposes steps to strengthen regulation and supervision of large bank holding companies
December 20, 2011 - The Federal Reserve Board on Tuesday proposed steps to strengthen regulation and supervision of large bank holding companies and systemically important nonbank financial firms. The proposal, which includes a wide range of measures addressing issues such as capital, liquidity, credit exposure, stress testing, risk management, and early remediation requirements, is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Banks’ risk management technology spending to reach $74bn by 2015
November 8, 2011 - Technology investments in risk management infrastructure by banks will reach $74 billion by 2015, a report has revealed. A study by IDC Financial Insights showed that growth in risk management spending will be faster than the total amount of investment in technology within the financial services sector.
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).
Japanese regulator slams Citi's risk management IT
December 19, 2011 - Citi has been ordered to overhaul its risk management systems by Japan's Financial Services Agency, which has sanctioned the US bank for the way it has tried to sell investment products to retail customers.
CFTC and SEC Approve Confidential Private Fund Risk Reporting
October 31, 2011 - The Commodity Futures Trading Commission (CFTC) today approved a final rule requiring certain advisors to private funds that are dually registered with the CFTC and the Securities and Exchange Commission (SEC) to report information to the SEC for use by the Financial Stability Oversight Council (FSOC) in monitoring risks to the U.S. financial system. The SEC approved the joint rule on October 26, 2011.
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.