Risk management - Risk.net

Impact of fragmentation would be less severe today than in 2010s, says Marcello Minenna

https://www.risk.net/comment/7959331/falling-t2-balances-bode-well-for-eurozones-stability

More lenders want to use SRTs to offload credit risk, but old hands say they have a long road ahead

https://www.risk.net/investing/7959262/for-a-growing-number-of-banks-synthetics-are-the-real-deal

Experts fear flagship test’s use as a capital top-up has undermined its role in risk management

https://www.risk.net/risk-management/7959266/did-the-feds-stress-capital-buffer-blunt-ccar

Risk-and-tech chemistry – plus Microsoft’s flexibility – has seen US lender leap from experiments to execution

https://www.risk.net/risk-management/7959333/how-ally-found-the-key-to-genai-at-the-bottom-of-a-teacup

CPMI-Iosco says scheduled variation margin is better than ad hoc calls by clearing houses

https://www.risk.net/risk-management/7959327/industry-urges-focus-on-initial-margin-instead-of-intraday-vm

Banks and market-makers – including BofA, Citi, Goldman, Jump and Tower – will have a 26% stake in FMX

https://www.risk.net/markets/interest-rate-markets/7959324/consortium-backs-bgcs-effort-to-challenge-cme

BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB

https://www.risk.net/regulation/7959290/revealed-the-three-eu-banks-applying-for-ima-approval

Latest plans would still allow members to bundle clearing and execution – and would fail to boost clearing capacity, critics say

https://www.risk.net/regulation/7959298/ficc-takes-flak-over-treasury-clearing-proposal

FSB report calls for regulators to review existing standards for non-bank liquidity management

https://www.risk.net/markets/7959293/buy-side-would-welcome-more-guidance-on-managing-margin-calls

Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025

https://www.risk.net/regulation/7959282/japanese-megabanks-shun-internal-models-as-frtb-bites

If interest rates are cut before new benchmark docs are ready, banks face possible NII squeeze

https://www.risk.net/risk-management/7959272/benchmark-switch-leaves-hedging-headache-for-philippine-banks

Also: Payback for slow Paycheck Protection payouts; SEC hits out at AI washing. Data by ORX News

https://www.risk.net/comment/7959268/op-risk-data-tech-glitch-gives-customers-unlimited-funds

Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure

https://www.risk.net/risk-management/7959148/the-american-way-a-stress-test-substitute-for-basels-irrbb

Vote on workplan pulled amid calls to avoid duplicating rules from other regulatory agencies

https://www.risk.net/regulation/7959250/industry-warns-cftc-against-rushing-to-regulate-ai-for-trading

Higher interest margins and a trend toward insourcing drive major tech projects

https://www.risk.net/risk-management/7959235/top-10-op-risks-change-brings-challenges-as-banks-splash-the-cash

In the face of persistent digitisation challenges and the attendant transformation in business practices, many firms have been struggling to maintain governance and business continuity

https://www.risk.net/risk-management/operational-risk/7959233/integrated-grc-solutions-2024-market-update-and-vendor-landscape

External fraud re-enters top 10 as artificial intelligence provides new tools for criminals

https://www.risk.net/risk-management/7959175/top-10-op-risks-deepfakes-drive-rise-in-fraud-fears

The US Fed already does, but it is notable that EU banks were less exposed to Archegos

https://www.risk.net/risk-management/7959207/should-the-ecb-stress-test-counterparty-default-risks

The Chartis Research report, AML transaction monitoring solutions, considers how, by working together, financial institutions, vendors and regulators can create more effective anti-money launderi...

https://www.risk.net/insight/operational-risk/7959212/vendor-spotlight-dixtior-aml-transaction-monitoring-solutions

High-profile hacks on market infrastructures and vendors expose linkage between top three risks

https://www.risk.net/risk-management/7959190/top-10-op-risks-third-parties-stoke-cyber-risk

Risk Live: Experts say policy wording is tightening up following rise in ransomware attacks

https://www.risk.net/risk-management/7959198/beware-war-exclusions-in-cyber-insurance-risk-managers-told

The biggest op risks for the year ahead, as chosen by senior industry practitioners

https://www.risk.net/risk-management/7959161/top-10-operational-risks-for-2024

External fraud re-enters top 10; change management now a top five concern

https://www.risk.net/op-risk-benchmarking/7959180/top-10-op-risks-ai-fears-drive-cyber-risk-to-record-high

As CRE stalls, qualitative adjustments are forming a larger part of US banks’ credit risk allowances

https://www.risk.net/risk-management/7959134/harsh-judgements-why-stateside-lenders-are-upping-the-q-factor

Panellists highlight dangers of clearing membership becoming more concentrated

https://www.risk.net/regulation/7959173/as-fcms-dwindle-regulators-fear-systemic-risk

As financial markets evolve, evaluating the complex credit risk exposures of non-bank counterparties is crucial for effective risk management, says Quantifi’s Dmitry Pugachevsky

https://www.risk.net/insight/risk-management/7959157/bank-credit-risk-how-well-do-you-know-your-counterparties

Rotations from European to US assets will need prefunding due to slower EU settlement

https://www.risk.net/risk-management/7959171/eu-index-managers-face-funding-risks-as-us-moves-to-t1

Anti-procyclicality measure floated by HKEX official sparks interest from rivals including Nasdaq

https://www.risk.net/risk-management/7959172/ccps-show-support-for-daily-stress-margin-tools

The detailed analysis for the Financial crime and compliance50 considers firms’ technological advances and strategic direction to provide a complete view of how market leaders are driving trans...

https://www.risk.net/risk-management/operational-risk/7959151/financial-crime-and-compliance50-2024

Also: JPM trips up on trade surveillance; Reg Best Interest starts to bite. Data by ORX News

https://www.risk.net/comment/7959127/op-risk-data-lloyds-lurches-over-ps450m-motor-finance-speed-bump

As LockBit plans its comeback, experts say banks need a clear ransomware negotiating playbook

https://www.risk.net/risk-management/7959078/too-soon-to-say-good-riddance-to-banks-public-enemy-number-one

Wells Fargo model risk chief thinks he has found a way to validate large language models

https://www.risk.net/risk-management/7959062/the-bank-quant-who-wants-to-stop-gen-ai-hallucinating

Risk management

https://www.risk.net/markets/7959123/reluctantly-cme-moves-to-clear-us-treasuries

Frequency of repricing impacts volatility and correlation measures

https://www.risk.net/cutting-edge/7959106/infrequent-mtm-reduces-neither-value-at-risk-nor-backtesting-exceptions

There’s underlying appetite to clear, but a structure to suit all participants is proving elusive

https://www.risk.net/risk-management/7959097/snail-race-the-slow-growth-of-securities-lending-ccps

Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance

https://www.risk.net/risk-management/7959099/iosco-gears-up-for-intensive-work-on-ai-regulation

New partnership is one of four initiatives competing for dominance in wake of 2022 gas price spike

https://www.risk.net/markets/7959070/tradition-links-up-with-komgo-for-energy-credit-optimisation

Löber says regulatory sign-off on small model changes should take just three weeks under Emir 3.0

https://www.risk.net/risk-management/7959072/esma-pledges-faster-approvals-for-ccp-margin-model-changes

BCBS-Iosco consultation calls for daily disclosure of margin calls

https://www.risk.net/markets/7959061/proposed-ccp-margin-disclosures-may-be-destabilising-eurex-warns

After warnings from EBA and BoE, risk managers urge ‘soul-searching’ on post-model adjustments

https://www.risk.net/risk-management/7958971/european-regulators-turn-up-the-heat-on-ifrs-9-model-overlays

Delays patching financial sector vulnerabilities highlight the need for more internal clout for cyber chiefs

https://www.risk.net/risk-management/7959013/beating-the-drum-on-cyber-risk-the-battle-for-boardroom-attention

CCAR for 2024 includes analysis of simultaneous defaults of five largest hedge fund clients

https://www.risk.net/risk-management/7959033/fed-unveils-hyper-archegos-test-to-reveal-bank-blow-up-risks

Users turned to alternative securities lending platforms, but that may not mean lost market share

https://www.risk.net/risk-management/7959020/why-cyber-hack-leaves-equilend-down-but-not-out

Also: HSBC deposit guarantee gaffe; Caixa hack cracked; reg fine insult to cyber crime injury. Data by ORX News

https://www.risk.net/comment/7958995/op-risk-data-morgan-stanley-clocked-in-block-trading-shock

CCPs fear Europe will adopt its own prescriptive rules despite ongoing international consultation

https://www.risk.net/risk-management/7958994/eu-clearing-houses-want-global-standard-on-procyclicality

To know what needs urgent patching, global banks first need to know what software they have

https://www.risk.net/risk-management/7958895/citrix-bleed-hacks-flag-it-asset-inventory-shortfalls

Banks vary in how they classify operational risk losses – and regulators are in no rush to change the status quo

https://www.risk.net/risk-management/7958807/tall-order-why-a-unified-op-risk-taxonomy-is-still-elusive

Ransomware attack at securities lending platform disrupts regulatory compliance

https://www.risk.net/risk-management/7958953/equilend-cyber-hack-exposes-trade-reporting-dependence

Regulators must keep pace with new technology that could be used to control financial markets

https://www.risk.net/risk-management/7958887/ai-expert-warns-of-algo-based-market-manipulation

European Parliament wants to amend Emir 3.0 draft to put extra obligations on clearing houses

https://www.risk.net/risk-management/7958852/clearing-members-cheer-plan-for-more-transparency-on-ccp-margin