Portfolio managers (PM) and traders make investment decisions everyday which translate into risk positions in their books. These decisions are mostly supported by strong fundamental views and solid convictions, based on the PM’s or trader’s view on how the market will move and how will these moves affect their positions. There are several techniques that a PM or trader […]
Regulation
INFOGRAPHIC: Trump Presidency and US Foreign Policy Risks
Many voices have been expressing their concerns on the US president-elect Donald Trump. Millions of tweets, blog posts, written press articles, hours of TV debates in different channels… One thing is for sure: there is great uncertainty in the next four years. The key aspect now is to watch how Donald Trump unfolds his policies […]
INFOGRAPHIC: Banks Risk Management Survey 2016 by EY
Banks have taken serious steps post-financial crisis to improve and even totally overhaul their Risk Management processes and systems . This has been an enormous challenge for banks as the industry regulation has increased exponentially post-financial crisis with capital and liquidity requirements also increasing. At the same time, CEO’s must keep their focus on increasing banking revenues to 10-15% […]
EBOOK: Enterprise Risk Management
Enterprise Risk Management (ERM) is a method which provides a given firm to have an overview of all its key risks and associated information, therefore enabling the board and management team to make balanced, cross region wide risk decisions. Risks are Opportunities Earlier, so it seems, the world was less dangerous. Today, more and more enterprises with […]
Thomson Reuters Culture and Conduct Risk Survey 2016/17
This is Thomson Reuters’ forth annual survey, focusing on how financial services firms are managing conduct risk has identified distinct industry wide trends against which firms can benchmark their own progress. Last year, compliance and risk practitioners from more than 260 financial services firms across the world, including banks, brokers, asset managers and insurers took […]
Leverage and Risk Weighted Capital Requirements
The global financial crisis has highlighted the limitations of risk-sensitive bank capital ratios. To tackle this problem, the Basel III regulatory framework has introduced a minimum leverage ratio, defined as a banks Tier 1 capital over an exposure measure, which is independent of risk assessment. Using a medium sized DSGE model that features a banking […]
MIFID (II) AND MIFIR
Whats is MiFID? MiFID is the Markets in Financial Instruments Directive (2004/39/EC). It has been applicable across the European Union since November 2007. It is a cornerstone of the EU’s regulation of financial markets seeking to improve the competitiveness of EU financial markets by creating a single market for investment services and activities and to […]
BIS: Review of the Credit Valuation Adjustment Risk Framework
This consultative paper presents a proposed revision of the Credit Valuation Adjustment (CVA) framework set out in the current Basel III capital standards for the treatment of counterparty credit risk. CVA is an adjustment to the fair value (or price) of derivative instruments to account for counterparty credit risk (CCR). Thus, CVA is commonly viewed […]