...Kim Ferranti In this case study the author describes how the Ohio State Savings Bank tied its strategic decision‐making to its balance sheet management processes and interest rate risk process. “Quantum leaps have been made in information coming out of this department in a relatively short time...

...Neil Gerrard UK companies face an increasingly aggressive regulatory environment. A recent study by the LSE shows that UK directors are ill‐equipped to deal with increasing regulatory risk. While they are aware of these growing risks, almost a third of boards do not know about the activities...

...Financial Committee of the Institute of Chartered Accountants in England and Wales This position paper from the Financial Reporting Committee of The Institute of Chartered Accountants in England and Wales provides an update on the latest thinking on risk management within the corporate environment...

...Mike Hammond The drive to eliminate losses leads to greater emphasis on risk‐control measures. Argues that risk management can be transformed through the use of behaviour‐based risk management techniques. reducing losses through minimising root cause behaviours; providing a process...

...Risk Management Team, Marsh UK The insurance market is having a tough time. Costs are rising as risk become tougher. But the best risks see high costs of insurance as a reason to leave the market and insure themselves. The market cycle has been broken. The key now is to understand and manage risks...

...Andreas Krause It is shown that the widely used risk measures standard deviation and value at risk do not always reflect risk preferences accurately. To overcome these problems in risk measurement a class of coherent risk measures has been proposed. We introduce the idea behind these measures...

... for candidates who have the ability to speak a number of languages is also increasing amongst potential employers. Salaries – London Details are shown in Table II. Assets Management Treasury Risk Equity Analysis Financial services Robert Walters Robert Walters...

...Richard Raeburn The author argues that in difficult times for risk and corporate governance the corporate treasurer is increasingly the most valuable source of information for non‐executive directors. Risk is at the heart of the work of the corporate treasurer. This is particularly true...

...Michael Mainelli Banks are often smug about their management of risk. Smugness may well be justified for market and credit risks, but banks can learn much from industry about managing operational risk. In order to manage operational risk, industry has evolved enterprise risk/reward management...

...Abby Kyte The world of financial instruments is becoming increasingly regulated. This paper deals with how hedging works as a method of changing an organisation’s risk profile. It argues the case between risk and return and shows how a better balance sheet can be achieved. It warns against...

...John Thirlwell Understanding first credit risk and the operational risk has taxed the banking industry. The author suggests that the evidence points to a lack of understanding within the banks and he argues that regulators should desist in trying to change the management practices of banks...

...Kimberly Ferranti The author describes how SunGard installed a sophisticated interest rate risk analysis system for ABN AMRO’s North American headquarters in Chicago. She details the problems involved, the difficulties overcome and the benefits gained. © Authors 2002 Banking Interest...

...Vicky Kubitscheck The author considers the issue of business continuity planning and asks whether it can cope with the emerging risks of a new century and whether it fits with the move to an enterprise risk approach. She assesses all the many risks involved from outsourcing to reputation risk...

... the dilemma of risk management and risk reporting. They argue that there are difficulties in disclosing risk on the grounds that it causes problems with competitors and investors alike. There is also a lack of consensus of how market risk should be measured. They assess how to quantify operational risk...

... that, if reporting more realistically shows volatility, then so be it. But the proposals are the most comprehensive examination of the problem and he commends its study. © Company 2001 Accounting standards Banking industry Credit Risk Derivatives Hedging In December, accounting standard‐setters...

... a current deal that Bank of America has structured using credit derivatives. © Company 2001 Credit Derivatives Risk Swaps Value Loans The data in Table I, taken from a study conducted by the British Bankers Association, demonstrates that the credit derivatives market has grown...

...Simon Page; Mark Winter The authors trace the inside story of a ground‐breaking transaction which they pioneered. It enabled Barclays Bank to shed all the credit risk it held as the result of originating unsecured consumer loans in a particular branded portfolio. As such the transaction allowed...

...Chris Mundy Draws on the results of a survey into alternative risk transfer by Marsh Risk Finance covering major corporations over three years. Covers the needs of the buyers rather than the suppliers. Shows how alternative risk transfer can be of value to the insurance world in particular...

...Igor Lamser; Erik Helland Traces the history of the development of the chief risk officer. Considers where the value of such a role lies. Outlines the skills required by the individual and discusses the competing issues which firms must bear in mind. © MCB UP Limited 2000 Risk Skills...

...Peter van Amson Provides a practical guide to option adjusted transfer pricing. Describes the basic elements of the finances and accounting required to make this practical. Presents basic examples of funds transfer pricing. Considers the risks involved. © MCB UP Limited 2000 Transfer...