Jan 12, 2017
In a December 2016 speech, the chairman of the Basel Committee on Banking Supervision, Stefan Ingves, commented on the issue of complexity in the capital adequacy framework. He associated the existence of complex capital rules with the decision to adopt banks’...
Nov 29, 2016
The paper “Risk Accounting – The risk data aggregation and risk reporting (BCBS 239) foundation of enterprise risk management (ERM) and risk governance” was published in two separate editions of the Journal of Risk Management in Financial...
Jul 20, 2016
If CFOs were to be asked what keeps them awake at night, their answer is likely to be “unexpected losses”. There can be no worse experience for a CFO than to have to explain to the CEO, the board, the media and, in extreme cases, in congressional or...
Jun 16, 2016
Conventional ERM systems are generally assessment based and, consequently, they typically report results via an assessment metric often based on three colors: red, amber, and green. The managerial usefulness of such systems is limited for a number of reasons: first,...
Sep 16, 2015
In the aftermath of the financial crisis, the G20’s Financial Stability Board invited auditors to play a more prominent role in assisting the FSB in its mandate to stabilize the global economy. Also, the Basel Committee on Banking Supervision issued new requirements...
Jul 30, 2015
There is much hand-wringing on the question of risk culture. The failures of the recent past associated with bid-rigging, product mis-selling, rogue trading and the like are viewed by governments, regulators and the media as evidence of an increasing prevalence of...
