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Author: Maike Sundmacher Publisher: ISBN: Category : Languages : en Pages : 10
Book Description
While there have been substantial developments in financial reporting over many years, the reporting of risk in statutory reports is still very much in its infancy. This comes at no surprise given risk is multidimensional and can be measured in many ways. In the financial services sector (FSS), where risk-taking is the fundamental business, the industry standard for risk disclosure is quot;Value at Riskquot; (VaR). This applies to a small proportion of FSS risk - this being market risk in trading activities. Although operational risk has been at the core of the collapse of a number of financial services firms over recent years, there are no formal accounting standard for operational risk. Further, the Basel Committee's requirements on operational risk disclosures (Pillar 3) are qualitative.This paper examines the nature of current operational risk disclosures by international banks, the consistency of disclosures, and their usefulness. The information is taken from the 2004 and 2005 annual reports of fifty-seven financial institutions. We find that the quantity and quality of operational risk disclosures vary significantly across institutions. The disclosures are predominantly descriptive and of qualitative nature - in order to be useful banks need to supplement their current disclosures with quantitative information. Due to the lack of consistency and the vagueness of disclosures it is not possible for external parties at this to compare the operational risk levels of banks.
Author: Maike Sundmacher Publisher: ISBN: Category : Languages : en Pages : 10
Book Description
While there have been substantial developments in financial reporting over many years, the reporting of risk in statutory reports is still very much in its infancy. This comes at no surprise given risk is multidimensional and can be measured in many ways. In the financial services sector (FSS), where risk-taking is the fundamental business, the industry standard for risk disclosure is quot;Value at Riskquot; (VaR). This applies to a small proportion of FSS risk - this being market risk in trading activities. Although operational risk has been at the core of the collapse of a number of financial services firms over recent years, there are no formal accounting standard for operational risk. Further, the Basel Committee's requirements on operational risk disclosures (Pillar 3) are qualitative.This paper examines the nature of current operational risk disclosures by international banks, the consistency of disclosures, and their usefulness. The information is taken from the 2004 and 2005 annual reports of fifty-seven financial institutions. We find that the quantity and quality of operational risk disclosures vary significantly across institutions. The disclosures are predominantly descriptive and of qualitative nature - in order to be useful banks need to supplement their current disclosures with quantitative information. Due to the lack of consistency and the vagueness of disclosures it is not possible for external parties at this to compare the operational risk levels of banks.
Author: Norbert Gittfried Publisher: Frankfurt School Verlag ISBN: 3956471903 Category : Business & Economics Languages : en Pages : 374
Book Description
Managing environment, social and governance (ESG) risk, compliance risk and non-financial risk (NFR) has become increasingly critical for businesses in the financial services industry. Furthermore, expectations by regulators are ever more demanding, while monetary sanctions are being scaled up. Accordingly, ESG, Compliance and NFR risk management requires sophistication in various aspects of a risk management system. This handbook analyses a major success factor necessary for meeting the requirements of modern risk management: an institution-specific target operating model (TOM) – integrating strategy, governance & organisation, risk management, data architecture and cultural elements to ensure maximum effectiveness. Also, institutions need to master the digital transformation for their business model to be sufficiently sustainable for the years to come. This book will offer ways on how to achieve just that. The book has been written by senior ESG, Compliance and NFR experts from key markets in Europe, the U.S. and Asia. It gives practitioners the necessary guidance to master the challenges in today's global risk environment. Each chapter covers key regulatory requirements, major implementation challenges as well as both practical solutions and examples.
Author: B. Porteous Publisher: Springer ISBN: 0230512704 Category : Business & Economics Languages : en Pages : 343
Book Description
The authors present a comprehensive and timely discussion of economic capital and financial risk management for financial services firms and conglomerates. Topics covered include: the different types of risks that firms collect; risk governance issues; how stress testing can be used to measure risk; the provision of a clear and precise definition of economic capital; the different types of capital that are eligible to back regulatory capital, and; the development of models that can be used to estimate a firm's economic capital requirements. A unique feature of the book is that, for the first time, the economic capital requirements of financial services firms across the entire risk spectrum, from the short end to the long end, are considered in one book. The authors develop models to estimate the economic capital requirements of banks, asset management firms, life and non-life insurance firms, pension funds, and the financial services conglomerates that comprise these firms. Economic capital is compared to regulatory capital and regulatory capital arbitrage is discussed. The diversification benefit present in financial services conglomerates is quantified and the practical management of this diversification benefit is dealt with. The authors give new insights into capital management and performance measurement for financial services conglomerates and provide detailed descriptions of the main financial services firm regulatory capital changes that are ongoing at the time of writing. This superb and original book charts new ground in the practical application of economic capital for financial services firms and conglomerates. It is required reading for all capital allocation and risk professionals.
Author: M. Starita Publisher: Springer ISBN: 1137390840 Category : Business & Economics Languages : en Pages : 304
Book Description
Capital Requirements, Disclosure, and Supervision in the European Insurance Industry provides an in-depth analysis of Solvency II's issues by combining both a theoretical approach and evidence of the empirical implications and effects on the European insurance industry.
Author: Tamer Elshandidy Publisher: ISBN: Category : Languages : en Pages : 51
Book Description
This paper provides a wide-ranging and up-to-date (1997-2016) review of the archival empirical risk-reporting literature. The reviewed papers are classified into two principal themes: the incentives for and/or informativeness of risk reporting. Our review demonstrates areas of significant divergence in the literature specifically: mandatory versus voluntary risk reporting, manual versus automated content analysis, within-country versus cross-country variations in risk reporting, and risk reporting in financial versus non-financial firms. Our paper identifies a number of issues which require further research. In particular we draw attention to two: first, a lack of clarity and consistency around the conceptualization of risk; and second, the potential costs and benefits of standard-setters' involvement.
Author: Dimitris N. Chorafas Publisher: Elsevier ISBN: 0080498094 Category : Business & Economics Languages : en Pages : 353
Book Description
Written for professionals in financial services with responsibility for IT and risk management, Dimitris Chorafas surveys the methodology required and IT systems and structures to support it according to Basel II. The book is consistent with the risk management certification process of GARP, as well as the accounting rules of IFRS, based on research the author conducted with IASB. The author provices an in-depth discussion of the types of risk, stress analysis and the use of scenarios, mathematical models, and IT systems and infrastructure requirements. * Written in clear, straightforward style for financial industry executives to provide necessary information for risk control decisionmaking* Consistent with GARP, IFRS and IASB risk management processes and procedures* Explains stress testing and its place in risk control
Author: Erik Banks Publisher: John Wiley & Sons ISBN: Category : Business & Economics Languages : en Pages : 184
Book Description
This work explains the practical challenges associated with risk management and how, by focusing on accountability, governance, risk appetite, liquidity, client risks, automated and manual processes, tools and diagnostics, they can be overcome.
Author: Maike Sundmacher
Author: Maike Sundmacher
Author: Norbert Gittfried
Author: 
Author: B. Porteous
Author: M. Starita
Author: Tamer Elshandidy
Author: Dimitris N. Chorafas
Author: Erik Banks
Author: Patricia Jackson
Author: Lawrence D. Cluff