Risk Data Aggregation & Risk Reporting. Part 2
“Not everything that can be counted counts,” said Mike Donovan, VP, Strategic Risk Analytics & Credit Portfolio Management at Canadian Imperial Bank of Commerce (CIBC). He was the second speaker to address the September 19, 2013 evening meeting of the Toronto chapter of GARP regarding the set of Principles for Effective Risk Data Aggregation & Risk Reporting released by the Basel Committee in January 2013. CIBC, like other Canadian banks, is adapting to the heightened risk management data requirements and building the foundation for future sustainable growth. Donovan used the opening quote by Einstein to remind the audience that big […]
Risk Data Aggregation & Risk Reporting. Part 1
During the throes of the last financial crisis, banks and regulators alike “struggled” to get good quality information. “The infrastructure was not there,” said James Dennison, CFA, Managing Director, Operational Risk Division, Office of the Superintendent of Financial Institutions (OSFI). To enhance banks’ risk management infrastructure, the Basel Committee on Banking Supervision (BCBS) released a set of Principles for Effective Risk Data Aggregation & Risk Reporting in January 2013. Dennison was first to speak on the evening of September 19, 2013 at the Toronto chapter meeting of the Global Association of Risk Professionals (GARP). It was convened at First Canadian Place to allow […]
Evolution of the OTC Swaps Markets. Part 1: “Futurization” of Swaps
Recent reforms to the swaps market can be thought of as “the futurization of swaps,” said Nathan Jenner, COO Fixed Income E-Trading at Bloomberg. He was addressing a webinar audience on May 14, 2013 as the first speaker in a panel organized by the Global Association of Risk Professionals (GARP) on the evolution of the market for over-the-counter (OTC) swaps. Five years ago, “derivatives were perceived as a catalyst in precipitating” the financial crisis of 2007-08, said Jenner. For example, it wasn’t immediately apparent who were all the counterparties to the AIG swaps. Pricing was “murky,” he said, and risk […]
Stress Testing: Part 2. The Next Generation
There are five key considerations for the “next generation” of financial stress testing, said Tom Kimner, Head of Americas Risk Practice & Global Risk Products at SAS. He was addressing a webinar audience on May 7, 2013 as the second speaker in a panel organized by the Global Association of Risk Professionals (GARP). Modern stress testing must be measured against the key considerations of performance, efficiency, completeness, transparency, and compliance. The goal of turning stress testing into an “early warning system seemed futuristic only a few years ago,” admitted Kimner at the outset of his talk. He contrasted the world […]
Stress Testing: Part 1. Balance Numbers and Narrative
“Uncertainty is a fundamental part of business. Major shifts occur without warning, triggered by a single event, or combination of unrelated, contemporaneous events,” said Sanjiv Talwar, Managing Director, Risk Capital & Stress Testing at Bank of Montreal. He was addressing a webinar audience on May 7, 2013 as the first speaker in a panel organized by the Global Association of Risk Professionals (GARP). He summarized the categorization of uncertainty by Courtney et al. in “Strategy Under Uncertainty”, Harvard Business Review. There is a variety of tools available to help manage the uncertainty, Talwar noted: option evaluation, game theory, pattern recognition, […]
Measuring the ROI of GRC. Part 2: Solutions to “Absorb Regulatory Demands”
An unprecedented amount of new regulations “has led to risk assessment fatigue,” said John Kelly, Market Segment Manager in Business Analytics at IBM. He was the second of two speakers who addressed a GARP webinar audience on March 28, 2013 on the topic of the return on investment (ROI) on governance, risk assessment, and compliance (GRC). Most of the presentation referred to the study “Guidebook: Understanding the Financial Value of GRC Management” released in October 2012 by Nucleus Research that was talked about by Hyoun Park in the first part of the presentation. When it comes to regulation, there is […]