Financial Risk Management

This network brings together professionals involved in the oversight and management of their company's financial risks and exposures as well as solution vendors, in order to discuss risk issues including interest rate risk, foreign exchange risk and commodity price risk, among others.

Retired Member 

Machine Learning Could be Your Bank’s Next Data Scientist

Good Help is so Hard to Come by After All As of the writing of this article, the popular recruiting site Indeed.com returned 1745 search results for the query “Data Scientist Financial Services” (If you’re in data science, hang with us for a second before you scurry over there). Google returns pages upon pages of results when prompted to find the ...

31 March 2017 /payments /regulation

Sufyan Khan Head of Pre Sales / Solution Consulting - Europe at Oracle

Laying a solid foundation for the IRB Approach in Turkey

Turkey’s Banking Regulation and Supervision Agency (BDDK) is moving ahead with plans to permit the use of the Internal Ratings-Based (IRB) Approach to credit risk. Having relied on the Standardized Approach for some time, many banks will be eager to reduce their capital requirements by moving to more risk-sensitive IRB models. However, in order t...

29 March 2016 /regulation

Richard Chapman Head of Strategy at SunGard

Why is a reconciliation like a shirt? A buyer’s guide by a reluctant shopper

Picture the scene: in a tailor’s shop in Hoi Ann, Vietnam, a reluctant shopper (me) has just been measured for a couple of bespoke suits. I’ve chosen the fabric, decided on the cut and I’m just about to pay for the privilege. Then the tailor throws a curveball. Had I thought, he asks, about shirts to go with my purchases? Despite fierce air condit...

17 September 2015 /regulation

Elizabeth Lumley Global FinTech Commentator at Girl, Disrupted

This year's scandal is brought to you by the forex market

About a year ago I had a coffee with a former foreign exchange trader (as you do) who said to me. "Liz, the next big scandal is going to be around all these banks rigging the foreign exchange market, and no one is reporting on it! It will be bigger than Libor!" Well, a quick Google search revealed that quite a few trading and FX leaning ...

03 November 2014 /regulation

Retired Member 

5 CHOICES TO PICK AN ORIGINATION MODULE

The credit risk associated over a loan lifecycle can be best arrested at the time of originating the loan itself. So, Invariably there is a need to have a more robust process and an intelligent system in place for evaluating a borrower than simply following the spreadsheet model and penning down large volumes of data on a piece of A4 size paper. ...

10 October 2014 /retail /startups

Amit Agrawal NA at in transit

Why do RWA differ across countries

Risk Weights Assets (RWA) allocate an amount of capital to the assets held by a financial institution as a function of their risk perception and the origination nature (the higher the perceived risk, the higher the risk weight). RWA are core input in the calculation of a financial institution capital ratio and were first introduced in Basel I Anyw...

23 January 2014 /regulation /wholesale

Amit Agrawal NA at in transit

Monitoring Tools for Basel III

One of the advantage of the financial crisis is that banking regulators focus more on liquidity then capital. Hence Basel Committee's focussed in Basel III to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector. It gives the birth of introducing new monitoring tools for liquidity risk. The...

28 November 2013 /regulation

Richard Chapman Head of Strategy at SunGard

ATM Reconciliations: sounding the alarm for potential risk

Banks are under pressure to deliver growth to ensure long-term survival. But growth initiatives of new services and products are dependent on the application of new operational processes, including reconciliation and exception and dispute management. Here’s the catch-22 – growth represents both an opportunity and a challenge for banks. While innova...

20 June 2013 /regulation

Retired Member 

Decision Automation: A Simple Puzzle That Can Teach Us A Lot

In this article, we want to illustrate the importance of augmenting automated decisioning and business intelligence systems with human intelligence. Here’s a simple logic puzzle for starters. Please look at the picture at the page bottom. There are four cards lying on a table in the way pictured below. Identify which card(s) you would flip in order...

07 December 2012 /regulation /retail

Retired Member 

Scorecards. Achieving Most Precise Borrower Segmentation

Below we examine most common mistakes in scorecard development, and explain how to use them for most precise borrower rating and segmentation. Scorecards provide a set of weights assigned to characteristics that demonstrate customer’s credit worthiness. With scorecards, customers are evaluated and rated according to their potential probability. You...

19 November 2012 /regulation /retail