Issue #48

Editor's Letter - A greener future: Editor Liz Booth reflects on the Paris climate talks and discusses why the role of financial services is so pivotal.   News: Analysis of the major risk-related news stories of the past few weeks, including an update on the Fifa scandal, the future of AMA models and Solvency II   Spotlight - The challenge of integrating disciplines: The Risk Universe’s Carrie Cook discusses how operational risk and business continuity professionals can work together to improve the firm’s overall approach to risk management.   Regulatory update: An update on recent regulatory developments in the industry, including new anti-money laundering directives from the EU and NYDFS, plus the FCA’s technology initiative.   Operational risk : A career at the sharp end: Operational risk is the most dynamic of all the careers in risk in financial services, as Nick Kochan reports.   If you ask me : Manoj Kulwal: Columnist Manoj Kulwal explains why operational risk should always be part of a firm’s decision-making process and gives helpful tips on ensuring the board listens.   How To... Reduce operational risk within risk management: Anthony Pereira explains how firms can reduce operational risk within risk management by making use of automation to improve efficiency, allowing risk managers to get on with the job they are paid to do.   Sharing Scenarios - Damage or destruction of property and facilities arising from social unrest, riots and demonstrations: This month, the scenario explores the risk that the firm is adversely affected by damage or destruction to its property as the result of social unrest, riots and demonstrations.   The benefits of a united voice: Philip Martin, from the Institute of Operational Risk (IOR), explains the benefits of becoming a member of the organisation, which is dedicated to the development of the operational risk profession.   Risk Classifications - Company violations of employee rights or privileges: RiskBusiness’ Mike Finlay takes a look at the risks associated with company violations of employee rights or privileges.   Dear Santa: Every month, an anonymous senior executive of a financial services firm writes a letter to the CEO about concerns they have always wanted to raise. This month the CRO contacts another prominent figure…

Issue #47

Editor's Letter - Making sure the day job is done just right: Disruptions can come in many guises, says editor Liz Booth.   News: Analysis of the major risk-related news stories of the past few weeks, including European bank job cuts, an update on TalkTalk, IT failures and more.   If You Ask Me - Ravi Gupta: Regular columnist Ravi Gupta discusses how to predict and prepare for black swan events using deductive and inductive reasoning.   Spotlight - Can today’s banks survive the next big disruption?: Economics and disruptive technology expert Michael Baxter takes a looks at how fintech companies are threatening banking as we know it.   Regulatory Update: An update on recent regulatory developments in the industry, including a new VAT ruling on Bitcoin.   Weathering The Storm : Climate Change Mitigation: As we move into a more carbon-restrictive environment, companies who don’t take climate change mitigation seriously risk missing out, writes Carrie Cook.   Sharing Scenarios - Discriminatory recruitment policies or practices: This month, the scenario explores the risk that the firm or its representatives engage in discriminatory practices within the recruitment and hiring process.   How To... Design and implement a controls framework: RiskBusiness’ Mike Finlay explains how to create an appropriate controls framework for your firm, covering governance, structure and accountabilities and how to implement it properly.   Operational Risk and Regulatory Change: We’ve heard the phrase “tsunami of regulation” used a lot to describe the supervisory landscape in recent months. But what can firms do to keep their heads above the water? Helen Pykhova and Meredith Gibson discuss.   Risk Classifications - Post capture transaction processing errors: RiskBusiness’ Mike Finlay takes a look at the risks associated with errors made by firms after transactions have been agreed.   Dear CEO: An anonymous senior risk officer at a financial services firm writes a letter to the CEO venting their frustrations.

Issue #46

Editor's Letter - Who to blame?: As Volkswagen looks for someone to blame for the emissions scandal it highlights the ever-present issue of people risk, says Liz Booth.   News: Analysis of the major risk news stories of the past few weeks, including the Volkswagen scandal, global crash warnings from the IMF and more.   If You Ask Me - Annie Searle: Our regular columnist and risk expert Annie Searle ponders the various aspects of people risk and gives advice on how to address it in your firm.   Spotlight - Whistleblowing: As new guidelines are released in the UK for whistleblowing, Billy Stevens takes a look at the challenges surrounding the issue and how firms should tackle the stigma associated with speaking out.   Regulatory Update: An update on recent regulatory developments, including new OTC guidelines from FINRA in the US, a consultation from the UK's FCA on writing references and the Basel Committee's decision to drop AMA.   Interview - Bennett Arron: We meet comedian, writer and identity theft victim turned speaker, Bennett Arron and review his book, "Heard the One About Identity Theft?"   Sharing Scenarios - Front-running: This month, the scenario explores the topic of front-running, a subject which has recently had its share of media and market attention due to the continual growth of so-called dark pools.   How To... Relocate: The Risk Universe’s Billy Stevens takes a look at some of the issues involved in relocation and provides a step-by-step guide to doing so.   Relocating to Mauritius: Continuing on the theme from our How to piece, Max Fulton shares his own experience of relocating to Mauritius – and helping firms to do the same.   Risk Classifications - Policy and claims application and documentation fraud: RiskBusiness’ Mike Finlay takes a look at a risk category which perpetrators often consider a form of victimless crime, namely fraudulent insurance claims.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to the CEO detailing some of the issues they have always wanted to raise.

Issue #45

Editor's Letter - Playing God?: In light of the Ashley Madison scandal, Liz Booth asks if we should really be playing God.   News: Analysis of the major news stories of the past few weeks, covering concerns over US swaps, forex lawsuits and an update from the SFO.   If You Ask Me - Ellen Davis: Regulators are paying increasing attention to the issue of conduct risk. Ellen Davis from Thomson Reuters explains why it can be a tough nut to crack and looks at how firms can take proactive steps to address it.   Spotlight - Bribery and Corruption: Firms and government organisations across the globe face a constant battle with bribery and corruption. Carrie Cook takes a look at why it’s not always easy to wipe the slate clean   Regulatory Update: An update on recent regulatory developments, including new anti-money laundering rules in the US, a crackdown on cyber security in the UK insurance industry and new accountability guidelines   The Cost of Poor Test Data Management: As new stringent EU regulations on data protection loom on the horizon, financial institutions must get to grips with managing their test data, or face the consequences, writes Andrew Crouch of SQS.   How To... Select and Adopt an External Risk Framework: Choosing an external risk management standard requires plenty of investigation and analysis. Here, Manoj Kulwal of RiskSpotlight compares and contrasts the ISO 31000 and COSO ERM standards.   Identity of an Operational Risk Professional: Operational risk roles demand a whole range of experience and knowledge. But is it realistic to expect such a wealth of skills from one individual? Elizabeth Roberts and Helen Pykhova discuss.   Sharing Scenarios - Payments System Outage: This month, the scenario explores the impact of a payments system outage and the resultant business disruption to the firm, its customers and the broader industry.   Risk Classifications - Impermissible Gifts or Political Contributions: RiskBusiness’ Mike Finlay takes a look at firms that make inappropriate political contributions, provide gifts or other benefits, or make illegal payments to secure business advantage for themselves.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to the CEO detailing some of the issues they have always wanted to raise

Issue #44

Editor's Letter - Is no news ever truly good news?: Time to escape the endless pressures of day-to-day life and consider the wider picture   News: Wheatley leaves FCA; Libor market manipulation; Foreign exchange rate investigations; Brazil strategy.   Interview: David Dooks, of the British Bankers Association, explains www.bbaGOLD.org and reports on why it is so effective.   Spotlight - Reputation management: Many companies still do not know how to manage their reputation, as expert Kasper Ulf Nielsen outlines, sharing a proven process for reputation management.   Talent Needed to Meet Rule Book Demands: The Willis Financial Institutions Index 2015 has identified six key “mega trends” which together are changing the financial sector, as Carrie Cook reports.   To Fight or Flee: As regulators increasingly look to examine businesses in greater depth, Nick Kochan looks at the balance between compliance and keeping the business running.   How To... Governance, risk and compliance: buying the right software: Philip Martin warns the financial service sector is littered with examples of the wrong system being built or acquired, as he explores the costs and potential pitfalls of acquiring a software system and provides a suggested approach to ensuring a successful system delivery.   Sharing Scenarios - CEO spoofing: This scenario explores the risk of fraudsters impersonating senior management to instruct staff to make payments to some fraudulent beneficiary.   Regulatory Update: The Basel Committee’s Foreign Exchange Working Group (FXWG); centralising financial regulation at the Bank of England; Basel IV.   Risk Classifications - Utility services outages: RiskBusiness’ Mike Finlay takes a look at the impact on firms of power outages, both localised and national.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to the CEO detailing some of the issues they have always wanted to raise.

Issue #43

Editor's Letter - A Greek tragedy – challenge or opportunity?: It’s been a tense few weeks for Greece. Will the country emerge successfully from its problems?   News: Analysis of the major news stories of the past few weeks, covering the Greek debt crisis, banking conduct, JPMorgan’s $200m settlement and Barclays’ CEO sacking   If You Ask Me - Ravi Gupta: Operational risk manager Ravi Gupta provides a different perspective on corporate culture, ethics and conduct.   Spotlight - Why your employees are your biggest cyber threat: Regular columnist and digital communications expert Jeremy Swinfen Green explains why employees are your biggest online threat.   Regulatory Update: The Basel Committee releases an update on corporate governance and the PRA and FCA publish new remuneration rules.   Safe or Sorry?: We take a look at the complicated impact of safety measures on risk.   How To... Conduct a bow-tie analysis: Certified Lean Six Sigma Master Black Belt Max Cardew provides a step-by-step guide of how to conduct a full bow-tie analysis from start to finish.   Cyber : The Intangible Peril: Can we ever really know the full potential of the global cyber threat? We take a look at recent developments in cyber defence to try and answer this question, including a new report commissioned by Lloyd’s.   Sharing Scenarios - Staff bullying or victimisation by supervisors or managers: This month, our scenarios feature explores the repercussions of workplace bullying and victimisation and how this can result in a hostile or oppressive working environment   Risk Classifications - Online data fraud and deception schemes for profit: RiskBusiness’ Mike Finlay takes a look at the major financial implications on firms that are victims of phone scamming, phishing and online data fraud and deception.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to the CEO detailing some of the issues they have always wanted to raise.

Issue #42

Editor's Letter - The Human Factor: Despite the many regulatory developments and punishments for non-compliance, it seems you still can’t take the human factor out of the equation when it comes to risk.   News: An overview of the major news stories of the past few weeks, covering the Deutsche Bank fraud investigation, Solvency II developments, new challenges for the Basel Committee and job cuts at HSBC.   If You Ask Me: The Risk Universe columnist, Annie Searle, takes a look at two recent studies on ethics in finance and asks if the issue will always be a concern for the industry.   Spotlight - An introduction to social media risk: In a series of articles on protecting your organisation from online threats, Jeremy Swinfen Green takes a look at the specific risks surrounding a firm’s use of social media platforms.   $94bn And Counting: We take a look at how eight major banks have accumulated fines of more than $94bn since the financial crisis.   Regulatory Update: The latest EU directive on anti-money laundering regulation, New York releases state rules for digital currencies and the UK’s Fair and Effective Markets Review publishes its final report.   Integrated Assurance Management : How Should the Three Lines of Defence Interact Together?: André Dylan Kohler, partner at EY’s EMEIA Financial Services Advisory, gives his views on how integrated assurance management can be applied to the three lines of defence model.   How To... Build a Scenario: To conduct an appropriate scenario assessment you need a documented scenario to assess. With this in mind, RiskBusiness’ Mike Finlay offers a simple but effective approach to building a scenario.   Sharing Scenarios - Utility Outage: This month, our scenarios feature explores the repercussions of significant utility outages for the average firm.   Risk Classifications - Robbery, burglary or physical theft – without injury: RiskBusiness’ Mike Finlay takes a look at the implications of an age-old problem which is still very relevant today: robbery, burglary and physical theft.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to the CEO detailing some of the issues they have always wanted to raise.

Issue #41

Editor's Letter - Proactive risk management: How should risk managers remain proactive about addressing emerging risks as they remain bogged down with historical data?   News: Analysis of the major news issues of the past few weeks, covering the Solvency II framework, HFT software concerns, top risks and business disrupters as well as The Risk Universe Risk Event Timeline and Comic Strip.   If You Ask Me - Nick Leeson: The Risk Universe columnist and former rogue trader, Nick Leeson, looks at so-called “conduct risk”, sharing his views on this disputed risk form.   Spotlight - Protecting reputation: The rise of social media has totally changed the way firms are portrayed online and a careless post or tweet could go viral in minutes. Find out how to ensure your reputation remains firmly intact.   Regulatory update: A look at why regulators should pay closer attention to the behavioural sciences, plus an update from European lawmakers on payment services, new developments in foreign exchange conduct and concerns raised over banking reform.   Special Focus : Regulation of asset managers: The Risk Universe’s Billy Stevens investigates the changing world of asset management regulation in light of the enormous increase in regulatory compliance in the financial sector.   How To... Classify risks and events: RiskBusiness’ Mike Finlay takes a detailed look at how to classify specific risks and events, providing a step-by-step guide to classification.   Sharing Scenarios - Insider trading: This month’s scenario looks at the implications of insider trading by staff members who exploit confidential information obtained from within the firm.   Risk Classifications - Sexual harassment: Continuing with our regular feature on data classification issues and guidelines, Mike Finlay takes a look at the uncomfortable issue of sexual harassment.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to his CEO detailing some of the issues he has always wanted to raise.

Issue #40

Editor's Letter - Experience counts: How will firms cope with expected changes to the operational risk capital approaches, having lost the majority of the previous generation of practitioners?   News: Analysis of the major news issues of the past few weeks, covering a proposed crackdown on the asset management industry, cyber security expectations, bribery issues, developments in cryptocurrencies and the evolution of banking.   Interview - Caroline Coombe, ORIC International: The Risk Universe poses a series of questions to Caroline Coombe, chief executive of ORIC International.   Spotlight - Know-your-People: Spurred by the tragic events around Germanwings Flight 4U9525, The Risk Universe takes a look at the sound practice of knowyour-people and the costs of not doing so.   Regulatory Update: Recent comments from the Basel Committee about continual bank reform, as well as the introduction of yet another regulatory authority in the UK and the suggestion of an unexpected future possible role for the Bank for International Settlements.   Making Sense out of Uncertainty: Ravi Gupta, prompted by an insightful question from his son, explores exactly what risk is and how to create a simple framework to explain this difficult to grasp concept.   How To... Establish an accountabilities matrix: Against a backdrop of proposed regulatory changes, The Risk Universe provides guidance for the establishment of an accountabilities matrix, which includes delegations of authority.   Sharing Scenarios - Injury to staff during robbery: This month’s scenario looks at the implications for a firm given injuries to staff during a robbery. Find out the results of last month’s scenario benchmarking exercise.   Risk Classifications - Physical accidents and injuries to the public on company premises: Mike Finlay takes a look at the risk of physical accidents and injuries to members of the public while on the premises of the firm and what implications this may hold for the firm.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to his CEO detailing some of the issues he has always wanted to raise.

Issue #39

Editor's letter - Swimming naked: Another multi-billion fine for bad banking behaviour.   News: An Austrian Black Swan?; Commerzbank AML fine; Digital becomes a priority.   If you ask me - ISIS is an operational risk: Columnist Annie Searle shares her views on the ISIS threat.   Spotlight - Risk 2020: RiskBusiness’ Mike Finlay explores what the future holds for the financial services industry and for the risk management function during the next five years.   How to... Defend against cyber threats: Cyber security expert Graeme McGowan sets out the first practical steps to take to defend against the growing cyber threat to organisations.   Bad bank's tale: Victoria Tozer-Pennington assesses the fortunes of four banks – Barclays, HSBC, JPMorgan and UBS – since the financial crisis, with a focus on conduct and behaviour.   Sharing scenarios - Facilitation of client or customer taxation avoidance or evasion: Given the high level of media coverage, this scenario explores the impact on firms facilitation of tax avoidance.   Risk classifications - Embezzlement and Internal fraud schemes: RiskBusiness’ Mike Finlay takes a look at embezzlement and internal fraud schemes by staff.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to his CEO detailing some of the issues he has always wanted to raise.

Issue #38

Editor's Letter - Accountability and transparency: The key themes emerging from OpRisk World 2015 were accountability and responsibility.   News: Largest ever cyberattack uncovered; the OCC on cyber risk; all about transparency and the News Review.   OpRisk World 2015: RiskBusiness International and The Risk Universe hosted the second OpRisk World conference in Amsterdam, where speakers stirred a fascinating dialogue between attendees on the key issues affecting operational risk management today.   Spotlight - Operational risk transfer optimisation: UniCredit and Aon Benfield share their experience of building a second generation model that incorporates the use of insurance as a risk transfer and mitigation mechanism.   The Big Data Challenge: Big Data is a complex issue that few truly understand but research is advancing to help firms embark on taming the Big Data giant.   Top Operational Risks For 2015: The Risk Universe’s annual top operational risks survey has revealed the 12 most significant risks facing firms at the current time.   Sharing Scenarios - Embezzlement of funds: This month the scenario explores the impact on the firm arising from staff embezzlement.   Risk Classifications - Order Execution and Portfolio, Investment and Fund Management Allocation Errors: RiskBusiness’ Mike Finlay takes a look at errors and omissions around order entry and portfolio allocation.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to the CEO detailing some of the issues they have always wanted to raise.

Issue #37

Editor's Letter - Fighting Extremism: Financial institutions are in the front line in fighting terrorism.   News: MetLife fights SIFI designation; Floored by Basel; Cyber war heats up.   If You Ask Me - Dear Member of the Board: Annie Searle provides advice to boards of directors on how to better manage the company’s risk.   Spotlight - Lessons Learned: In the second in a series, Victoria Tozer-Pennington examines the practicalities of designing so-called Gen 2 models.   The Convergence: Risk and Quality Management: Lean Six Sigma expert Max Cardew explores the challenges with deploying a quality programme within operational risk processes.   How To...Create a better-governed, more risk-aware, and compliant corporate culture: MetricStream’s Gaurav Kapoor set out how to create a better-governed, more risk-aware and compliant corporate culture through the use of GRC.   Funding Outrage: Recent events in Paris and Sydney have reignited fears over terrorist attacks on civilians. The Risk Universe’s Nick Kochan takes a look at how the terrorist funding threat tests bank’s Anti-Terrorist Financing systems.   If You Ask Me - Navigating the Model Maze: Evangelos Sekeris shares his thoughts on the latest round of CCAR submissions and US firms’ progress with their operational risk submissions.   Sharing Scenarios - Damage or destruction of property and facilities arising from acts of war or terrorism: Following the tragic events in Paris and the recent case in Sydney, the scenario explores the impact on the firm from an act of war or terrorism.   Risk Classifications - War and Terrorism: Spurred by recent events, RiskBusiness’ Mike Finlay takes a look at the implications of acts of war or terrorism for the firm.   Dear CEO: Every month an anonymous chief risk officer of a financial services firm writes a letter to his CEO detailing some of the issues he has always wanted to raise.