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

Infinex Investments fined $125,000

Infinex Investments has settled with Massachusetts securities regulators for failing to adequately supervise agents who were selling high-commission securities products, including real estate investment trusts and variable annuities, primarily to senior customers at local banks who didn't understand the products.

Court finds Travelers crime policy covers money transfer loss due to email spoofing

For the second time in about a week, a federal appeals court has sided with a commercial policyholder where the insurer denied coverage under a computer fraud provision of a crime insurance policy for a money transfer involving fraudulent emails.

Anything Visa can do...Mastercard takes time out

Mastercard has followed Visa in suffering an intermittent outage that caused some card payments to be denied overnight. The downtime was first picked up yesterday evening and persisted for a four-hour period until 10pm, hitting customers at multiple banks in the UK and US.

Facebook fined £500k under information commissioner investigation into data use in political campaigning

The UK’s Information Commission Office has fined Facebook £500,000 million and called for a new statutory Code of Practice for use of personal information in political activity following its investment into the practice of using data analytics in political campaigns.

CFTC orders commodity trading firm to pay $34 million penalty for attempted manipulation of agricultural markets

The Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Lansing Trade Group, LLC (Lansing), a commodity merchandising firm with headquarters in Overland Park, Kansas, for the attempted manipulation of the price of certain wheat futures and options contracts that were traded on the Chicago Board of Trade (CBOT) and for aiding and abetting the attempted manipulation of the cash price for yellow corn from Columbus, Ohio (Columbus Corn).

Hong Kong fines Citi Asia unit $509,710 for 'dark pool' breaches

Hong Kong’s securities commission has fined a unit of Citigroup HK$4 million ($509,710) for breaching “dark pool” regulations, the regulator said on Tuesday.

Hong Kong’s SFC fines CCB International Capital for failing duty as IPO sponsor

The Securities and Futures Commission on Monday reprimanded and fined CCB International Capital HK$24 million (US$3.06 million) for failing its duty as a sponsor in the initial public offering application in Hong Kong of Fujian Dongya Aquatic Products, the latest in a spate of disciplinary actions against investment banks.

Impact of court ruling Chubb unit’s crime policy covers ‘spoofed’ wire transfer

In a closely-watched case on insurance coverage in an age of expanding cyber risk, a federal appeals court in New York has upheld a lower court ruling that a commercial crime insurance policy covers wire transfer losses resulting from a spoofing attack.

Ex-Goldman banker weighing plea deal on corruption charges in 1MDB probe

One week after former Prime Minister Najib Razak was arrested and charged with misusing state funds over the 1MDB scandal, the Wall Street Journal (the news outlet that originally broke the 1MDB story) is reporting that the former Goldman banker who arranged the three bond offerings that helped fill Razak's slush fund is in talks with US prosecutors over a potential guilty plea in connection to the scheme, which resulted in billions being looted from the Malaysian treasury.

'VBS paid R5m bribe to PIC executive'

An oversized suitcase stuffed with R5-million was flown to Johannesburg in a helicopter and handed to a Public Investment Corporation executive as a bribe from VBS, according to an affidavit by the broke bank’s former head of treasury.

Royal Bank of Scotland settles with Illinois for $20 million in securities case

The state of Illinois has reached a $20 million settlement with the Royal Bank of Scotland resulting from the bank’s marketing and sale of mortgage-backed securities a decade ago.

Credit Suisse to pay $77m over Chinese nepotism case

Credit Suisse agreed to pay $77 million to US authorities after admitting it hired the under-qualified relatives of influential Chinese officials in order to win business, the government announced Thursday.

 
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