| Fraud Claims Represent Risks, Missed OpportunitiesAt a time of skittish markets and uncertainty about the euro and world economies, financial services firms have a responsibility to be aware of a significant source of potential revenue -- claims in securities fraud cases. |
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| Geopolitical Risk Planning for WarIn the age of global interdependence, a good understanding of geopolitical risk is essential to business survival. |
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| An Operational Risk Prescription for Health Care ServicesThe next step for the health care services industry is to develop and execute a robust operational risk management program. It starts with developing a vision. |
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| Weather Derivatives Make a MarkAs wind power becomes a growing source of electricity generation, so does the demand for this form of weather risk management and weather derivatives for hedging. |
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| The Human Side of Risk Management: Part TwoSmart risk managers take hindsight bias and other human foibles into account when making decisions. |
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| Transforming Operational Risk Management: What the Titanic Tells UsThe Titanic was an operational risk not well managed. There are parallels today. |
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| The Human Side of Risk Management: Part OneFinancial risk managers can benefit from understanding the way everyday people make risk management decisions, particularly with regard to how they process information on probability and odds. |
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| The Risk TriangleDone poorly, managing operational risk has the potential to drain organizational resources, strain the culture of the organization, divert management’s attention and fail to identify current and future risks critical to the health of the organization. |
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| Real Risk ReductionFaced with the problem of capital costs, there is a need to estimate operational risk more clearly and directly so that there is more confidence in the capital amount, and so that actions to improve risk management and reduce the number are more explicit. |
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| Administrators in the SpotlightThe service providers facing the most scrutiny from investors are fund administrators, which track clients’ money transfers and provide the all-important net asset valuation. |
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| Overdue DiligenceThe Bernard Madoff fraud was the ultimate caveat emptor lesson for investors, for their need to know their fund managers and the strength, integrity and reliability of those managers’ operations. Yet even two years after Madoff entered his guilty pleas, regulators were finding reasons to keep pounding on that message. |
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| Multiplying PrimesTo avoid an all-eggs-in-one-basket dependency, investors now insist that hedge funds not only account for the risk of the sudden collapse of a counterparty or prime brokerage, but also that they understand how to enact them. But there are complications. |
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| All About CollateralNot until the financial meltdown, when risk managers sought a broader understanding of their exposures, did collateral management get the attention that it probably had been due for a long while. |
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| A New Order at AXA RosenbergIn December, AXA Rosenberg appointed Massachusetts Institute of Technology graduate Anna Chefter to the newly created post of chief risk officer. |
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| Climate Risk at Hurricane ForceThe 16-nation Caribbean Catastrophe Risk Insurance Facility launched in 2007. Now with over $100 million in capital, it paid out $8 million after last year's Haitian earthquake, 20 times that country's annual premium. |
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| Kroll Fills Out Altegrity LineupBefore the famed Wall Street sleuth and risk consultant Jules Kroll embarked on his new bond rating venture, he was founder and chairman of Kroll Inc., which Marsh & McLennan Cos. owned since 2004. That 3,000-employee Kroll business was sold in August for $1.13 billion to Falls Church, Virginia-based Altegrity. |
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| The Other KrollMany of the greatest risks to a corporation come from within. That fact hasn’t changed since Jules Kroll and his team helped Kmart pore through 19,000 vendors to blow the lid off employee bribery in its real estate division back in the 1990s. Now that part of the legacy Kroll anti-fraud, security and risk advisory consultancy has been re-started as K2 Global Consulting under co-founder and CEO Jeremy Kroll, son of Jules. |
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| Managing Risk with EurobondsConfidence, which slowly started to return to our capital markets during the first quarter of 2010, was hit by the sovereign crisis in May. In spite of this, Eurobonds remain a vital source of funding for corporate and financial firms, maintaining some degree of issuance stability. |
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| Operational Risk Group Lifts SightsSince its formation in 2004, the London-based Institute of Operational Risk has been working to raise the education level and the profile of its part of the risk profession. |
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| A Partnership in WhistleblowingFor his prescient, repeated but ultimately unsuccessful attempts to bring Bernard Madoff’s Ponzi scheme to regulators’ attention, Harry Markopolos has gained a measure of belated fame, a pristine reputation as a financial fraud investigator and a book contract: His No One Would Listen came out in March. |
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| The Global Accounting Standard's Risk PromiseBy making apples-to-apples comparisons easier and truly global, converged International Financial Reporting Standards (IFRS) could streamline financial and credit analyses, reduce administrative and compliance costs and give trade and commerce a much needed shot in the arm. At least that’s the theory. |
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| Learning from DisastersProfessor Mark D. Abkowitz’s book analyzes 18 man-made accidents, terrorist acts and natural disasters spanning a 30-year period from 1975 to 2005. It is a resource worthy of a place on the bookshelves of any organization that could be impacted by such incidents. |
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| When Hackers AttackTechnology and Internet risks are increasingly well understood. But as countermeasures remain elusive or expensive, the exposures appear no less frightening. |
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| The Solvency II Operational Risk ChallengeSolvency II, slated for implementation in 2012 in Europe, is set to change drastically the regulatory compliance landscape for the insurance industry. While there has been much talk about the quantitative components of this capital accord, insurers still have lots of work to do meet all of its operational risk management requirements. |
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| Growing Up RiskyOver a distinguished career in computer science and engineering, Martin Hellman has developed more than a few ideas about security and risk. Professor emeritus of electrical engineering at Stanford University, Hellman is one of the inventors of public key cryptography, a linchpin of the information security arsenal that often keeps hackers and other computer-age miscreants at bay. |
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| Risk Management as a ServiceFirms outsource their data processing and keep lawyers and public relations agencies on retainer. So why not risk advisers, too? At a time when investors are extraordinarily cautious with their money and hedge funds are cutting back, Catalina Partners is offering that kind of help to those and other investing constituencies. |
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| NYSE Makes Political-Risk PitchFor corporations, political risk is as real as the daily headlines from Afghanistan, Iran or North Korea. It has become enough of a hot-button concern that NYSE Euronext sees political risk analysis as a route to customer satisfaction. |
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