Knowledge

Liquidity Risk Management and Reporting: A Call to Action!

During the global financial crisis it became clear that a lack of liquidity accentuated matters, and contributed  to bank failures. In the UK, the Financial Services Authority has published its thoughts on how to regulate liquidity in the future. Alongside capital, the FSA regards liquidity as a critical shock absorber for the financial system. Its proposals are far reaching, and financial institutions need to act now.

Stress and Scenario Testing - Thinking the Unthinkable

The financial crisis has shown the vulnerability of banks to severe market shocks. Stress testing is not new, but current practice has fallen short. Regulators are now mandatiing rigorous stress and scenario testing of portfolios and business models to ensure banks are adequately capitalised.It is time to think the unthinkable.

Banks have been warned - they should be "very frightened" of  their regulator.

Emerging Best Practices in Operational Risk Management

Following recent high profile operational risk losses financial institutions face increased scrutiny by regulators. More institutions are being subjected to the "regulatory use test". If it becomes apparent to the regulator that their Operational Risk framework is not satisfactory they may need to increase regulatory capital.

The regulators are  "raising the bar".

Managing Financial Institutions beyond the Credit Crunch

The Credit Crunch and ensuing Financial Crisis have changed everything - certainly from a capital adequacy and regulatory compliance systems viewpoint! So just what are the implications and will things get back to Business as Usual?

The End of the Beginning - Embedding Risk in A Basel II World

Some banks thought compliance with the Basel II regulations would enable more optimal use of capital. Recent market turmoil has shown this is not the case. Risk must be better understood and managed and there must be greater focus on liquidity. 

Basel II was not the end but the End of the Beginning! 

Sources of Complexity in Risk Data

Risk data is the central enabling core of an organisation’s ability to achieve competitive advantage through dynamic analysis and management of its own risk portfolios. Unfortunately it is far from simple. So what are the principal sources of complexity in risk data?

Insurance: An Industry in Transition - What is the Role for Technology?

The regulatory framework is now changing for Insurance as well as Banking. Solvency II is coming to the European insurance industry - What is it and what are the implications for insurance systems? 

Mathematical Optimisation of Collateral and Other Credit Risk Mitigation Instruments

Credit risk mitigation techniques are useful for optimising regulatory capital requirements under Basel II. Can anyone do it? If so how do we build systems to achieve this?