Recent events have highlighted the importance of a Risk Management framework which is able to deal with risk types beyond those included within Basel II Pillar 1. In the light of the Pillar 2 requirements, financial institutions and investment firms are now obliged to strengthen their firmwide Risk Management, in...
If you use data mining or rules-based models to make key decisions, you may need to explain the basis for these decisions to satisfy compliance for Sarbanes-Oxley, Basel II, and other regulations. This executive brief explains how you can address regulatory compliance by using proven analytics management technology to automatically...
Cetelem CR wanted to acquire a tool to describe risk management processes in IDS Scheer ARIS format, to comply with BNP Paribas' request for such descriptions for the purpose of Basel II homologation and gain greater insight into Cetelem CR's internal efficiency and performance, as well as greater control over...
Corporations of the 21st century must face up to the growing challenge of compliance. Governments worldwide are regulating information management and security with increasing amounts of legislation. Legislation that is written in an ambiguous legal language which may require small hordes of legal experts to decipher. These experts may understand...
Banking is about managing risk and multiple risk types. In fact, a bank's raison d'être is to accept structured uncertainty and manage the associated risks, with the goal of capitalizing on these risk differences to earn profits. The skill with which bank balances alternative risk/reward strategies will determine ability to...
One of the principal objectives of supervision is to alienate depositors from the financial risks of the bank. In today's volatile markets, it is imperative to ensure that capital set aside for capital adequacy measures is readily available for depositors in adverse market conditions. Basel II has largely left unchanged...
In addition to providing guidelines for calculation of minimum capital requirement and defining market disclosure requirements, one of the major objectives of the Basel II Accord is to improve risk management within the banks. As a result of Basel II, banks are faced with the task of developing internal procedures...
Substantial changes in the financial and regulatory environment are calling for banks to revise their credit risk management strategies. The problem was to develop a reliable solution capable of evaluating the probability of customer default, especially those in the corporate segment, and use the results as the basis for developing...
Part of the Milan-based UniCredit Group, Zagrebacka banka ZaBa is Croatia's largest bank in both market share and assets (57.5 billion Croatian kuna, or approximately US$9.4 billion). The challenge was in risk management and reporting, regulatory compliance. ZaBa deployed SAS for data management, analysis, modeling and reporting, with a direct...
As if financial institutions did not have enough compliance worries, a new international standard - Basel II - now looms on the compliance horizon. Unlike other laws and standards affecting financial institutions in the US and overseas such as the Gramm-Leach-Bliley Act ("GLBA"), the EU Data Protection Directive and the...
The RWACalculator calculates the Risk Weighted Assets value for a simple credit facility. The RWA calculation is based on the function provided by Basel II.
Bank of America, one of the world's leading financial institutions, provides its services through 6,100 retail banking offices and nearly 18,500 ATMs. For a large and complex organization like Bank of America, compliance with the numerous U.S. and international financial regulations is of vital importance. One of the most significant...
The data requirements of many industries are quickly expanding and growing more complex. Several emerging industry trends point to this. First, CRM, ERP and BI data warehouses and Enterprise Records Management ERM data storage devices face data proliferation as companies and organizations comply with regulations such as Sarbanes Oxley, Basel...
Given the current legislative and regulatory environment that includes the Sarbanes-Oxley Act on financial practices and corporate governance, Basel II on banking laws and regulations, the Patriot Act on communications and financial transactions, and other laws that include provisions for financial and legal sanctions, becoming and remaining regulatory compliant has...
Basel II (The International Convergence of Capital Measurement and Capital Standards: A Revised Framework1), is the second of the Basel Accords and poses minimum capital requirements. In line with the framework, financial companies must assess their operational, market and credit risks and form capital reserves to cover these risks. A...
It's not an easy time to be a chief financial officer. Already under pressure to manage profitability in a lean economy, CFOs face greater scrutiny than ever from shareholders, analysts and regulatory agencies - even from employees and the public. In the quest for a complete, accurate handle on operations...
An international financial services company needed to implement Basel II-compliant operational risk management processes and systems throughout its organization. The company needed to develop policies, tools and methodologies to manage operational risk. The bank also wanted to coordinate its Basel II efforts with other business risk management and compliance initiatives....
One of the nation's largest commercial banking organizations, the client operates an extensive regional distribution network and also serves customers in selected markets nationally. The firm needed to implement processes for storing and managing credit data and set up systems to satisfy Basel II requirements while addressing the data warehouse...
Regulatory pressures, such as Basel II and a greater focus on corporate governance, have been a stimulus for many changes in the industry - one of these has been the recognition of the need to articulate risk appetite more clearly. On the face of it, this may seem easy to...
One of the 10 largest and most complex banks in the United States needed to implement the requirements of the New Basel Capital Accord Basel II. The bank asked BearingPoint to help build a Credit Risk Data Warehouse CRDW that incorporated data from 35 source systems. The goal was to...
Read about top issues IT decision-makers face every day, plus get cost-effective solutions to real-life IT problems.
Expert advice on innovations in healthcare and the green technologies that make it happen.
Find out more
Discussion and advice on management issues that revolve around making your world smarter and more useful.
More Smart Advice
The best and worst moves in the management and strategy trenches.
Learn More
