Tag Archives: risk appetite

Six steps for building a culture of strategic data use

Man climbing a ladder

Since 2006, many boards have appointed chief data officers to work closely with their chief risk officers to evolve the organization’s culture to a data-driven, risk management organization. Read these six steps to help your organization evolve to a successful data-driven organization.

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Becoming the dial

fraud

A balanced risk appetite – tightly integrated with the business strategy – is paramount in this economy. David Gumpert-Hersh, Vice President of Credit Risk Management, Wesom Credit Union, shares his advice for setting and implementing a balanced risk appetite at a nonprofit where the ‘customers’ are the shareholders.

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CRO: Your risk appetite challenge

fraud

According to Boaz Galinson from Bank Leumi, it’s essential for CROs to define a risk appetite – the amount of risk embedded in the strategic plan. The challenge, he says, is translating that strategy into lower-level actionable plans, decisions and actions. A risk management culture, based on an enterprise risk tolerance statement, can be the most challenging tasks CROs face.

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What’s your risk attitude? (And how does it affect your company?)

balance_lrg

Firms with an approach that aligns with the real-world will create growth, while firms with a misaligned approach will shrink relative to each other. The risk attitude that aligns well will eventually control more of the market’s resources. Read this Harvard Business Review opinion on how risk attidude – and appetite – affects your firm.

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Executive views on accountability

Too big to fail

Viewers from the outside may not fully appreciate or understand these complexities of banking in the 21st century. But is complexity a defense for a perceived unwillingness to change? The 2012 EIU report on accountability in financial services has uncovered how C-level executives view their responsibilities – beyond maximising profits.

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How big is “too big to fail?” – Part 1

Tara Heuse Skinner

Many exercises designed to stem systemic risk also increase regulatory power to punish banks that contributed to the 2007 – 2009 financial crisis. This solution has some obvious flaws.

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Risk appetite: A high-stakes juggling act

What’s Your Risk Attitude? (And How Does It Affect Your Company?)

In this short video, Clark Abrahams briefly defines risk appetite, outlines the need for a clearly articulated risk appetite statement, and then discusses the key components of a risk appetite statement

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JPMorgan’s loss bigger than ‘risk management’

preventing tax fraud

The recent disclosure of a multibillion-dollar trading loss at JPMorgan Chase reminds us again of the challenge and complexity of risk management and who is ultimately responsible.

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How could I miss that? Jamie Dimon on the hot seat

Jamie Dimon on the hot seat

When organizations and systems appear to be performing well, when problems develop slowly over time, and when a variety of systematic lapses occur, even the best and the brightest simply do not notice gaps in information that would indicate a looming crisis.

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Cut the double talk

Clark Abrahams, Chief Financial Architect, SAS

Take a look at the news lately and you’ll see big names in financial services struggling to recover from serious reputation damage. Why? Unclear risk appetite messages were cascaded down the chain of command. Take a new look at the message you are sending and the message being received.

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