Banks have been paying the price for lax risk controls. Losses from the U.S. subprime crisis and the ensuing credit crunch crossed the $500 billion mark as writedowns spread to more asset types, according to Bloomberg. The report states that writedowns and credit losses at more than 100 of the world’s biggest banks and securities [...]
Fannie Mae has announced a major shakeup among the ranks of its senior management. This comes amid rising costs stemming from defaults by homeowners and mounting concerns the government-sponsored enterprise would soon need a government bailout. Fannie Mae President and CEO, Daniel H. Mudd, made a series of senior executive appointments, effective immediately, to oversee [...]
Enterprise risk management (ERM) is a growing concern and the biggest challenge for Chief Financial Officers, Audit Committee Members and Chief Audit Executives (CAEs). That’s according to three new surveys conducted by Crowe Chizek and Company LLC - one of the top 10 public accounting and consulting firms in the U.S. “The common theme in [...]
Almost 60% of European and U.S. institutional investors believe another large financial firm will collapse within the next six months, according to a survey by Greenwich Associates. The study also finds that more than 75% of those polled see counterparty risk in credit default swaps as a serious threat to global financial markets.
The Counterparty Risk [...]
In an attempt to avoid another financial-market meltdown, a group of the world’s biggest banks, including Goldman Sachs, Morgan Stanley, JPMorgan Chase, Merrill Lynch and Citigroup, issued a report proposing a series of far-reaching reforms with the goal of cutting down on risk. Among the proposals: banks would hold down the number of investors who can buy [...]
Risk management has become an offensive field. Corporate boards today face unparalleled levels of business complexity, new regulations and mounting shareholder demands. As a result, executive search firm, A.E. Feldman, says risk management jobs are evolving to better manage initiatives to ensure that business objectives are met, losses are minimized, business processes are improved and [...]
Risk continues to top the list of corporate priorities among companies in the financial sector as well as a growing number of non-financial businesses. A recent survey of leading figures in the financial services industry from global service provider, Omgeo, shows that nearly 90% of respondents are taking increased measures to protect their firms against [...]
The credit crisis has triggered a broad and growing emphasis on risk. In fact, a recent study conducted by KPMG’s Audit Committee Institute (ACI) and the National Association of Corporate Directors shows that risk management is now the biggest concern for audit committees. Moreover, although most audit committee members at public companies say their audit [...]
Recent stress in the financial markets has prompted the Fed to move to improve its ability to oversee the stability of the financial system. Fed Chairman, Ben Bernanke, and SEC Chairman, Christopher Cox, recently signed a memorandum of understanding (MOU) between the two agencies that will deepen their information sharing and cooperation as well as [...]
Today, corporate boards face a challenging set of issues in responding to the need for improved oversight of risk management. A full 70% of financial institutions place such oversight responsibilities with the board, up from 57% in 2002, reports Financial Week citing a survey by Deloitte Global Risk Management. Financial Week quotes Lionel Allan, CEO [...]
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