RISK MANAGEMENT INSIGHTS
Better risk management for competitive advantage
Recent risk management articles
- frtb: a wait and see strategy could be riskyFRTB, fundamental review of the trading book, is a regulation that changes how banks analyze market risk in the trading book to address systemic challenges.
- Credit risk management is the answerLending and loan volume is back up to pre-crisis levels. But banks are facing higher delinquencies as well. That's why improving credit risk management is crucial.
- IFRS 9 and CECL: The challenges of new financial standardsIFRS 9 and CECL will require banks to more accurately predict expected credit losses (ECLs). This will require new credit loss models based on analytics.
- Model risk management: Vital to regulatory and business sustainabilitySloppy model risk management can lead to failure to gain regulatory approval for capital plans, financial loss, damage to a bank's reputation and loss of shareholder value. Learn how to improve model risk management by establishing controls and guidelines to measure and address model risk at every stage of the life cycle.
- The current state of stress testingMany banks struggle to keep pace with the demands of Dodd-Frank Act stress testing. Find out what risk professionals cite as the most pressing challenges.
- 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.
- 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.
- 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?In the first installment of our risk management video series, 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: How will the principles be implemented, executed and enforced? What kind of investments do you need to make? What is risk data?
- Five 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 five 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.
- Less talk, more actionLast week's announcement by The European Banking Authority of its 2014 EU-wide stress test triggered an uproar of divergent opinions and criticism that will rumble for some time. This new methodology will profoundly impact how the European and global economies evolve.
- Experts: Nothing simple about meeting regulatory requirementsExperts discuss the trends and technologies that affect how financial institutions handle the growing number of regulations and regulatory agencies. They answer the question of how data and analytics help.
- Stress testing: A board-level issueFirms should still have a contingency plan for rare or extreme events. Stress testing focuses on analyzing risks associated with those events.
- Attitudes toward liquidity risk have changedIn 2008, most banks took for granted that they would always have access to liquidity, and so they didn’t worry too much about liquidity risk. Even regulators worried little about it – until the danger was exposed.
- What is a risk model?Banks use multiple models to meet a variety of regulations (such as CCAR and Basel III). With increased scrutiny on model risk, bankers must establish a model risk management program for regulatory compliance and business benefits. Begin the planning by clearly defining what a risk model is.
- Four themes running through the BCBS 239 principlesThe 14 principles of BCBS 239 cover a lot of ground, from IT infrastructure and governance to reporting. Understanding the four themes may aid in compliance. Donna Howe and Renzo Traversini outline those for you in this article.
- Reducing the CCAR pain Theoretically, CCAR submissions can be developed and submitted using your existing risk and finance infrastructure. But there are some challenges to that approach. An analytic solution that is built to facilitate collaboration between risk and finance can produce some significant technical and business benefits.
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