Risk management - Risk.net

Prompted by policy shifts and macro events, pension funds and insurance firms are seeking alternative solutions around funding and liquidity

https://www.risk.net/insight/investing/7960231/to-liquidity-and-beyond-new-funding-strategies-for-uk-pensions-and-insurance

End of TLTROs for banks and pension fund search for liquidity management tools drives uptake

https://www.risk.net/risk-management/7960268/more-cleared-repo-sponsors-join-eurex-ahead-of-cross-margining

A collaborative report by Chartis and Evalueserve on how the use of automation can combat the growing complexity of managing model risk due to regulation and market volatility

https://www.risk.net/risk-management/7960263/reimagining-model-risk-management-new-tools-and-approaches-for-a-new-era

Decision could embolden more banks to appeal, analysts say. But others believe result is one-off

https://www.risk.net/risk-management/7960102/what-goldmans-appeal-victory-means-for-fed-stress-tests

National Futures Association registration sharpens concerns about conflict of interest with CCP

https://www.risk.net/risk-management/7960250/clearing-members-rattled-as-cme-approved-to-launch-its-own-fcm

New entrant believes direct user access model will avoid accounting problem that hampers rival FICC

https://www.risk.net/risk-management/7960242/cme-files-application-for-us-treasury-and-repo-clearing

Citi’s Mariam Rafi sets out the drivers for sponsored and agent clearing of Treasury repo and reverse repo

https://www.risk.net/comment/7960206/ust-repo-clearing-considerations-for-done-away-implementation

SEC chief promises to keep up the pressure for done-away trades

https://www.risk.net/regulation/7960201/gensler-to-stick-to-treasury-clearing-timetable

As 2025 deadline looms, CCP and exchange members seek risk information that’s usually deemed confidential

https://www.risk.net/risk-management/7960186/clearing-houses-fear-being-classified-as-dora-third-parties

Banks optimistic that new model could prevent broken hedges driving balance sheet volatility

https://www.risk.net/risk-management/7960188/iasb-cautions-hedging-fix-wont-be-perfect-but-it-will-help

Service aims to offer collateral efficiencies for tri-party repo, and create much needed clearing capacity

https://www.risk.net/markets/7960175/bny-to-launch-done-away-ust-and-repo-clearing-service

Also: Danske’s costliest branch, tedious times for TD, and WhatsApp won’t stop. Data by ORX News

https://www.risk.net/comment/7960165/op-risk-data-macquarie-mauled-by-securities-mismarks

Risk Live: US arm of Japanese megabank asks first line to sign written waivers when risk advisories are ignored

https://www.risk.net/risk-management/7960176/mufg-blocks-vendors-that-refuse-to-reveal-subcontractors

Risk Live: Bank faces stricter capital and liquidity requirements if it crosses $250 billion in assets

https://www.risk.net/regulation/7960174/citizens-growth-wont-bow-to-regulatory-thresholds-cro-says

As global body proposes common reporting format, official says there may be an optimum time window

https://www.risk.net/regulation/7960166/fsb-promotes-convergence-on-operational-incident-reporting

But just because depositors didn’t react quickly doesn’t mean it will never happen

https://www.risk.net/risk-management/7960094/how-the-rate-hike-cycle-emboldened-banks-deposit-modelling

Risk Live: Cyber incident reports won’t automatically be referred to regulators, investigators say

https://www.risk.net/risk-management/7960156/us-cyber-cops-report-hacks-without-fear-of-sanction

Risk Live: Current timeline impractical, commissioner warns; proposes task force to steer implementation

https://www.risk.net/regulation/7960152/secs-peirce-calls-for-us-treasury-clearing-delay

Competing CCPs must resolve accounting and cross-margining obstacles to benefit from SEC mandate

https://www.risk.net/risk-management/7960147/netting-hurdles-could-decide-the-us-treasuries-clearing-race

Flaws in regulators’ methodology for gauging financial impact of climate change undermine transition efforts, argues modelling expert

https://www.risk.net/comment/7960069/climate-stress-tests-are-cold-comfort-for-banks

Risk Live: Deputy director doesn’t rule out copying UK plan to extend repo facility to pension funds and life insurers, but no imminent plans

https://www.risk.net/risk-management/7960066/ecb-official-open-to-offering-liquidity-aid-to-non-banks

Risk Live: ‘Shadow use’ and inability to attract new hires mean restricting access to GPTs is untenable

https://www.risk.net/risk-management/7960041/banks-must-loosen-up-on-chatgpt-use-risk-chiefs

Recalibration cuts risk weights in equity and commodities, but some credit exposures double on ABX halt

https://www.risk.net/markets/7960023/simm-casts-off-covid-pain-for-40-billion-im-reprieve

Banks feared retail deposits would be flightier than during previous periods of rate hikes

https://www.risk.net/risk-management/7959976/rate-risk-modellers-relieved-as-eu-deposits-stay-sticky

Automating software updates helps keep hackers at bay but can introduce op risk; banks balance the two

https://www.risk.net/risk-management/7960011/rough-patch-crowdstrike-sparks-an-auto-update-debate

Risk managers advocate five-year strategies and compliance teams’ ownership of the tech they use

https://www.risk.net/risk-management/7960018/banks-urged-to-keep-regulators-in-the-loop-on-ai-plans-for-aml

Three US regulators highlight deficiencies in banks’ due diligence on fintech partners

https://www.risk.net/risk-management/7960001/banks-urged-to-boost-third-party-scrutiny-amid-aml-crackdown

Stress loss add-ons touted as path to ensure defaulter pays and default fund contributions shrink

https://www.risk.net/risk-management/7959997/clearing-members-welcome-jscc-initial-margin-reforms

Think-tank’s policy plan to pull US out of multilateral threatens AAA rating, ending collateral exemption

https://www.risk.net/risk-management/7959969/could-trump-presidency-herald-27bn-margin-call-on-world-bank

A technique to decorrelate samples and reach higher discriminatory power is presented

https://www.risk.net/cutting-edge/7959963/backtesting-correlated-quantities

Also: H20’s less-than-liquid holdings, Ripple ripped for $125m, and more WhatsApp slaps expected. Data by ORX News

https://www.risk.net/comment/7959959/op-risk-data-shady-loans-robbing-reliance-of-11bn

Following a series of market and industry credit risk events, regulatory scrutiny of counterparty credit risk management practices is increasing. Now, more than ever, banks must ensure they are o...

https://www.risk.net/insight/risk-management/7959865/banks-must-close-the-loop-on-counterparty-credit-risk

Bank tech teams divided on whether to give security vendor a second chance after update crash

https://www.risk.net/risk-management/7959938/should-banks-risk-lightning-hitting-twice-for-crowdstrike

Some banks say the 1.5 line of defence responds faster to risk, but supervisors are still divided

https://www.risk.net/risk-management/7959934/risk-management-overhauls-juggle-speed-and-independence

Live AI use-cases are limited, as vendors warn on over-regulation

https://www.risk.net/risk-management/7959918/risk-technology-awards-2024-ai-hopes-and-holdups

Following regulatory prodding, banks start to overhaul counterparty risk models. A flurry of new research on the topic may aid the effort

https://www.risk.net/risk-management/7959885/the-post-archegos-risk-model-rebuild-beginsslowly

CrowdStrike outage highlights need for financial sector to adjust its game plan

https://www.risk.net/risk-management/7959835/lets-grow-the-third-party-risk-playbook-cme-security-chief

Proposed update to 20-year-old risk map is welcomed, but international co-ordination urged

https://www.risk.net/risk-management/7959787/bankers-hope-eba-op-risk-taxonomy-will-go-global

Also: Cartel claims cost European bond dealers dearly, plus oil price gouging and crypto cover-ups. Data by ORX News

https://www.risk.net/comment/7959826/op-risk-data-payday-lender-skytrail-sees-14bn-disappear

UK broker is live on LCH and plans to be a “day one” clearing member on FMX

https://www.risk.net/markets/7959837/marex-plots-interest-rate-clearing-push

Clearing members say concentration margin add-ons would be fairer than buffer on all portfolios

https://www.risk.net/risk-management/7959808/eurex-default-fund-reshuffle-leaves-members-frustrated

Big banks speed up shift towards control automation and AI adoption to counter costly human errors, Benchmarking survey finds

https://www.risk.net/op-risk-benchmarking/execution-and-process-errors/7959798/tired-of-fat-finger-blunders-g-sibs-turn-to-robots-for-help

New rules and account structures will be needed to allow cross-margining by non-members

https://www.risk.net/markets/7959792/cme-ficc-in-talks-to-expand-cross-margining-to-client-accounts

Conflicts – both existing and threatened – raise concern among banks, but many are still grappling to weave the risk into their frameworks

https://www.risk.net/op-risk-benchmarking/geopolitical-risk/7959777/on-geopolitical-risk-g-sibs-choose-their-battles

FCMs claim no client defaults, but episode revives complaints of procyclical margining

https://www.risk.net/risk-management/7959786/margin-calls-jumped-threefold-as-global-markets-sold-off

After Archegos, buy side turns to fellow asset managers for diversity and liquidity in securities financing and repo

https://www.risk.net/risk-management/7959780/no-end-of-peer-to-peer-demand-for-securities-financing

Some want US regulators to designate tech firms that pose risks to financial stability

https://www.risk.net/risk-management/7959766/crowdstrike-outage-spurs-rethink-on-critical-vendors

Some believe Credit Suisse was an outlier, but others say the CCAR results underestimated risks

https://www.risk.net/risk-management/7959730/why-was-archegos-worse-than-the-feds-five-fund-stress-test

Second-line teams have been growing at US G-Sibs – and are set to continue – while Europeans’ flatline

https://www.risk.net/op-risk-benchmarking/regulatory-compliance/7959773/for-compliance-risk-the-big-get-bigger

Piecemeal progress on ambitious derivatives data standard raises questions over business case

https://www.risk.net/risk-management/7959759/deja-vu-for-common-domain-model