RISK MANAGEMENT INSIGHTS
Better risk management for competitive advantage
Recent risk management articles
- Even as stress testing matures, gaps in technology and coordination remainEven with significant investments in people and process improvements, a survey conducted by SAS and GARP finds that banks are not as robust and mature as they need to be in terms of their technology.
- Risk data infrastructure: Staying afloat on the regulatory floodWhat are the challenges of a risk data infrastructure and how can they be addressed? Here's what you need to know to build an effective enterprise risk and finance reporting warehouse.
- An executive perspective on risk and fraudHSBC's global risk COO on how the world’s second-largest bank uses data management, analytics and industry expertise to tackle financial crime and more.
- Model risk management keeps banks ahead of the regulatorsRecent regulations require executives to know more about how their organization manages risk. David Rogers from SAS explains how to get started by understanding the models that drive decisions.
- RegCap vs. E-Cap: Getting It rightStress tests don’t produce a fourth type of capital - it is regulatory capital. And it gives regulators a view into capital planning where they had none before.
- Basel III doesn’t have to be a big pain for community banksBasel III isn’t going away. An investment now, rather than later, in a tool that gives you repeatable processes – and updates automatically when the rules change – will be well worth the time and effort.
- Five myths and misconceptions community banks have about Basel IIIMyth No. 1: Basel II didn't pertain to us, so Basel III won't either. Wrong. The US Basel III Final Rule provides capital frameworks commensurate with bank size, so the rules apply to nearly all banks in the US. Myth No. 2 ...
- Basel’s US history and what it means to community banksThe US Basel III Final Rule marks the first time that the US regulatory system is adjusted to the size of the bank. Tara Skinner talks through the history of Basel III and what institutions are impacted today.
- Three UK banks under pressure from stress testStress testing is not just a compliance box-ticking exercise, it is an essential tool for banks to use in developing their risk management strategy. Dale Stevens, Head of Risk at SAS UK and Ireland talks through some significant findings about how banks are using stress testing in their business and risk strategies.
- There's more to gain from regulations than just complianceThe things you are doing now to prepare for Solvency II implementation can benefit your business in many other ways. For instance, do you know which customers, regions or products are your most profitable? Do you know where you are leaking profits? Get the most from your compliance efforts.
- Two biggest challenges banks face in regulatory complianceA recent Longitude Research survey of more than 100 senior banking officials across Europe and the US found that the majority of banks still don’t use stress testing outcomes to inform strategic decision making.
- Four tips for finding a balance between revenue growth and regulatory complianceSanjiv Talwar, Head of Risk Capital and Stress Testing at the Bank of Montreal, talks with Tom Kimner and the Argyle Journal about the difficulties banks face with meeting regulatory requirements. He also shares his philosophy for approaching those difficulties - build a growth strategy based on the lessons learned from the regulatory exercises.
- Are you good at scoring?Credit scoring is the foundation for evaluating clients who apply for a loan (or other types of exposure for the bank). It is not unusual for it to take up to 12 months to build and deploy a new credit scoring model. Reforming the process will help minimize losses, increase earnings and reduce operational risk.
- Risk capital and lessons from the TitanicEconomic capital is that something extra that senior management needs for staying financially afloat in tough economic times. Tara Skinner uses the tale of the Titantic to describe risk capital risk management best practices.
- People, process, culture – and technologyData governance requires measurement and constant improvements of data quality. That’s a mountain of a job without clearly defined roles and responsibilities. Peyman Mestchian, Managing Partner at Chartis Research, and Tom Kimner, Head of Americas Risk at SAS, talk about data governance and the need for specialized departments, technology and skills.
- What are banks top CCAR hurdles?With CCAR, regulators will hold bank holding companies to more stringent standards for capital planning and stress testing. We asked our banking customers what their biggest struggles are with compliance and how they are addressing them.
- Data quality: The Achilles' heel of risk managementGiven the tightly regulated environment banks face today, the importance of data quality cannot be overstated. Beyond the obvious benefits of staying one step ahead of regulatory mandates, having accurate, integrated and transparent data will drive confident, proactive decisions to support a solid risk management foundation.
- BCBS 239: More questions than answers?Peyman Mestchian, Managing Partner at Chartis Research, and Tom Kimner, Head of Americas Risk at SAS, discuss the principles and the questions the principles leave unanswered. For instance: What kind of investments do you need to make? What is risk data?
- Four focus areas for successful stress testingStress testing is not new to the risk world. But the increased complexity, expected frequency and firm-wide nature of scenarios present new challenges. That being said, to deliver a successful stress testing program, there are four key areas you should address.
- Understanding capital requirementsCredit risk classification systems have been in use for a long time, and with the advent of Basel II, those systems became the basis for banks’ capital adequacy calculations. What is needed going forward is an efficient and honest dialogue between regulators and investors on capitalization.
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