Risk-based performance

Good judgments rather than the structure of regulation are the key to effective financial supervision

2010-06-18T05:38:00Z

Yesterday (17/6/2010) the Evening Standard reported comments from Hector Sants related to the changes in the regulatory regime of the UK financial services industry.

Good judgments rather than the structure of regulation are the key to effective financial supervision, Hector Sants, chief executive of the Financial Services Authority, said the day after Chancellor George Osborne announced the regulator will be abolished.

“I don't really consider structure is the central issue,” said Sants, who Osborne has persuaded to stay on for an extra three years. “I consider making good judgments is the central issue.”

Click here for the full article.

The essence of the thinking behind the Risk-based performance methodology is to provide the framework, process, tools and information which informs the good judgment of management teams.

Manigent/Unicom workshop - Risk Management and the Balanced Scorecard

2010-06-03T21:38:54Z

An introduction to Risk-based performance Management

In the wake of the credit crunch, understanding the acceptable level of risk that your organisation will take to achieve its organisational objectives, your risk appetite, and understanding the amount of risk you are currently taking, your risk exposure, is critical to ensuring your organisation not only survives these tough economic times, but thrives through them.

To effectively manage and monitor the relationship between risk appetite and risk exposure, thus driving strategic execution, organisations need to move beyond traditional, siloed performance and risk management approaches and instead take an integrated and aligned approach.

By attending this one-day interactive workshop, attendees will gain insights into the Risk-based performance methodology. This methodology, which builds on the Balanced Scorecard and COSO frameworks, provides a proven approach to managing and monitoring strategic objectives, their risk appetite and risk exposure.

Click here for more information and to register.

Manigent/Microsoft Executive briefing: Leveraging SharePoint for Risk Management

2010-06-03T21:36:42Z

Need to improve your enterprise risk management technology?

Are your ad hoc spreadsheets undermining your risk management initiative? Need a simple, easy to use enterprise application?

Is your risk management data locked away within complex systems? Do you need a solution to sit above multiple risk and other operational systems and can bring together data into integrated risk and compliance dashboards?

Join Manigent in partnership with Microsoft® for an upcoming executive briefing, Leveraging SharePoint for Risk Management, to explore how your organisation can take advantage of its Microsoft® SharePoint® server to deliver an enterprise wide performance and risk management solution.

http://tinyurl.com/398bqla

FSA’s largest penalty ever - FSA fines JPMorgan record £33.3m

2010-06-03T11:09:51Z

This story shows the importance of having in place good processes and systems, and managing your risks and controls around them.

Global Risks 2010 report

2010-05-02T08:10:00Z

After the shock to the global financial system and world economy in 2008, 2009 was a year of appraisal and adjustment. The risk landscape that this report has explored over the past five editions has in fact changed remarkably little. What has changed dramatically is the level of recognition that global risks, like the world, are now tightly interconnected and shocks and vulnerabilities are truly global, even if impact and response can still differ at the “local” level. Download the Global Risks 2010 report from the World Economic Forum's Global Risk Network.

Previous reports

Global Risks 2009 report

Global Risks 2008 report

Global Risks 2007 report

Global Risks 2006 report

HBR - Rising From the Ash: The Need for Risk Strategy

2010-04-26T23:45:10Z

The sudden and massive cancellation of over 90,000 flights in Europe caused by the eruption of Iceland's Volcano Eyjafjallajoekull proved again how nature's volatility can wreak havoc with global business. And while the skies might be opening up to some extent now, the economic impact is already staggering and being felt around the world. European air carriers bore the brunt of the damage, and in addition to lost revenues, their share prices took big hits with the German flag carrier Lufthansa dropping 2.1 percent. Asian carriers with European destinations lost about $40 million per day. Read full article here

Institute of Operational Risk launches second sound practice guidance paper – Risk Control self assessment

2010-03-16T08:41:20Z

The Institute of Operational Risk (IOR) has launched the second of it’s series of sound practice guidance papers. This paper focuses on Risk Control self assessment.

Click here to download the paper.

Click here to go to the website.

Institute of Operational Risk launches first sound practice guidance paper – Risk Appetite

2010-02-17T17:39:33Z

The Institute of Operational Risk has launched the first of a series of sound practice guidance papers. This first paper is on the topic of Risk Appetite.

Click here to download the paper.

Click here to go to the website.

FSA signals a more intensive supervision regime

2010-02-13T10:02:00Z

With the announcement of its funding requirements for 2010/11, the FSA has sent a clear signal, if one was needed, that there is now a more intensive supervision regime in part.

The FSA defined the key areas where it will focus its work as:

Continuing to deliver intensive and intrusive supervision
The delivery of the credible deterrence philosophy which is central to the FSA’s supervisory approach
The policy reform programme, driven by the Turner Review, which forms the FSA’s response to the financial crisis and covers critical issues such as reforms to liquidity and capital regimes, and
Ensuring delivery of the wider policy agenda mandated by the European Union. This includes Solvency 2, the review of the capital adequacy regime for the European insurance industry, and the largest project undertaken by the FSA.

Hector Sants, FSA chief executive, said: “The way the FSA regulates has changed radically, both in approach and intensity over the last three years.

Click here for details

Risk-based performance three pillars model

2010-01-31T23:00:37Z

The Risk-based performance three pillars model is now available. This model follows a familiar structure - Principles, Framework and Process.

Principles

Begin with strategy, integrating performance and risk management
Set the tone to enable and sustain the right culture
Manage the relationship between performance, risk and controls
Combine hard numbers with expert knowledge & judgement
Align the change agenda (run, change & transform)
Embed accountabilities and responsibilities – execution is a team game
Continually monitor, review and improve