The Risk Universe is a website and a monthly digital magazine that seeks to shed some much needed illumination onto the world of operational risk management.

Special Alert : The end of an era
In this issue of The Risk Universe, we ponder the future of operational risk management in its current form, as Mike Finlay’s provocative piece on page 12 asks: as operational risk management comes of age, does it have a future?

The proliferation of risk-related roles in financial institutions since the crisis, perhaps counterproductively, has created a series of over-lapping, contradictive disciplines, some of which arguably swallow up the functions that were commonly filed under operational risk.

The definition of operational risk itself hasn’t helped things, argues Finlay. After credit, market and liquidity, operational risk is often unhelpfully labelled as “everything else.”

Can practitioners continue to manage in this way? And isn’t “everything else” on the risk agenda usually something to do with cyber these days? Perhaps, then, it is the end of operational risk – at least as we know it. But, as practitioners look back at 18 years of the discipline, maybe it will also mark the beginning of a better, more ‘grown-up’ approach to risk management.

Endings are relevant for another reason this month, as we announce that this edition of The Risk Universe will be our last – for now at least. We hope you’ve found our operational risk-focussed viewpoint both useful and enjoyable to read. We will still be providing a dedicated source of industry news through our website, so stay tuned at www.riskuniverse.com and follow us on Twitter @RiskUniverse, for regular updates.

Thanks for reading.

Carrie Cook, Editor




Latest News

FCA fines bond trader £60,000 for market abuse

The Financial Conduct Authority (FCA) has imposed on Paul Walter, a former Bank of America Merrill Lynch International Limited (BAML) bond trader, a financial penalty of £60,090 for engaging in market abuse.

Citibank fined for illegal student loan servicing practices

Citibank must pay $6.5 million for illegal student loan servicing practices, the Consumer Financial Protection Bureau said Tuesday.

NatWest, RBS and Ulster Bank hit by online banking issues

This is becoming a regular fixture in the UK, as yet again British banks are reporting online banking problems.

Hong Kong tribunal fines HSBC private bank HK$400 million for Lehman-linked products

A Hong Kong tribunal on Tuesday imposed a record fine of HK$400 million (£38.7 million) on the private banking unit of HSBC in a case related to the sale of Lehman Brothers-linked structured financial products between 2003 and 2008.

Uber paid hackers to cover up massive data breach

Uber Technologies Inc paid hackers $100,000 to keep secret a massive breach last year that exposed the personal information of about 57 million accounts of the ride-service provider, the company said on Tuesday.

Guptas milked Transnet billions, washed it through HSBC, other banks

The Guptas effectively used a money laundering system to shift over R2bn ($160m) across the globe via international banks like HSBC and Bank of Baroda in a deal involving Transnet and China South Rail. This is according to an article published by investigative journalists at the Organized Crime and Corruption Reporting Project (OCCRP), an organisation that is registered in Maryland in the US. The story is the latest revelation to pose serious questions over global banking giant HSBC’s relationship to the controversial Gupta family. What South Africa has been left with, in the wake of the dodgy dealings, are trains that don’t work on our rail network. Just last week, Lord Peter Hain revealed how whistleblowers at HSBC’s South African office were ignored by their London HQ when they flagged suspicious transactions involving the Guptas. Hain, in his letter to UK authorities, indicated how the Guptas typically split transactions into several front companies, a classic money laundering strategy. Many of these revelations wouldn’t have come about without the Gupta email leaks. The person who leaked these emails may one day become a national hero.

Former chief of Proton Bank fined

The Council of State, the country’s highest administrative court, on Friday ordered Lavrentis Lavrentiadis, former chief of Proton Bank, and another four executives of the lender which went into liquidation in 2011 to pay a fine of 495,000 euros after deeming that they failed to take the required action to ward against money laundering and other financial crimes.

Swiss regulator finds JPMorgan broke money-laundering rules

Swiss financial markets authority FINMA has found that the Swiss subsidiary of U.S. investment bank JPMorgan broke anti-money laundering rules, a Swiss court document showed.

Wall St. traders secretly used chat rooms to rig Treasury bond prices

Wall Street banks secretly shared client information in online chat rooms in order to rig auctions for the $14 trillion US Treasurys market, according to an explosive lawsuit filed in Manhattan federal court on Wednesday.

Seven global banks face ‘cartel fine’ in Turkey

An official competition investigation committee has demanded that seven out of 13 global banks probed in Turkey for violating competition rules be fined up to 4 percent of their sales revenue, on the grounds that their actions “amounted to the acts as a cartel.”

HSBC pays 300 million euros to settle investigation of Swiss bank

HSBC Holdings has agreed to pay 300 million euros to settle a long-running investigation into tax evasion by French citizens via its private bank in Switzerland, the lender said on Tuesday.

New IcedID Trojan Targets US Banks

Researchers are warning users about a wave of recent attacks targeting U.S. financial institutions that leverage a new banking Trojan dubbed IcedID.

 
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