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Risk management

JPMorgan Loss Illustrates Difficulties of Adopting the Volcker Rule

Joe Mont May 22, 2012

JPMorgan Chase's $3 billion loss on derivatives trades has reignited a debate over what the final version of the Volcker Rule should include. A problem flagged by the bank's debacle is that there is no clear-cut answer to whether its actions would have violated the rule in its current form. "The fact is that proprietary trades and hedges look very much alike," says Peter Wallison, former general counsel of the Treasury Department.

Maintaining an Effective Compliance Program

Jaclyn Jaeger May 22, 2012

Building out a first-rate compliance program is no easy task, but it's still only the start of the process. Maintaining its effectiveness by keeping up with rapidly changing regulations, assessing compliance gaps and filling them, and mitigating ongoing compliance risks are all necessary to ensuring that a compliance program stays on track. Details inside.

Electronic Information Deluge Putting a Strain on Records Management

Joe Mont May 22, 2012

Despite increased resources and good intentions, companies are still fumbling when it comes to executing a comprehensive information management program that balances the unique needs of physical and electronic documents. A recent survey from Iron Mountain found that nearly three-quarters of respondents said they lacked a cohesive, multi-year strategy for records and information management. More survey results inside.

Integrating Risk Appetite and Risk Management

Karen Kroll May 15, 2012

Three years after the financial crisis, it's clear that companies still struggle with how to manage risk in the organization; just ask JPMorgan. Part of the difficulty: Getting a handle on risk across the organization is a complex undertaking which requires a careful balancing act. Integrating a formal statement of risk appetite with the risk-management program is an important step. Details inside.

Risk Study Outlines Strategic Shift

Tammy Whitehouse April 03, 2012

A new study of corporate risk-management efforts has spotlighted a burgeoning effort to shift toward a more strategic, board-level, "are we prepared to recover?" approach that might help companies withstand today's risk environment. "Risks are more interconnected, and the ramifications of risk are happening at a faster pace than they ever have in the past," says Ken Coy, U.S. leader for PwC's governance, risk, and compliance practice.

Rethinking Supply Chain Risk Management Strategies

Jaclyn Jaeger February 22, 2012

Companies such as Cisco Systems are working to get more visibility into, and control over, supply chain disruption risks. The strategy: invest heavily in analytics and build risk management into the design and planning phase of that. Other businesses, alas, still lag. "Overall, most companies don't have a strategy for managing supply chain risks," says Jerry O'Dwyer, a principal at Deloitte.

Boards Continue to Struggle With Oversight of Risk Management

Jaclyn Jaeger September 27, 2011

A new report suggests that boards haven't done all they would like to tackle risk-management issues. More than half of those surveyed say they don't spend enough time on them, and about the same amount say their companies still don't have a chief risk officer. Meanwhile, more than 60 percent say that personal liability risks for directors are increasing. More survey results inside.

Getting a Grip on 'People Risk'

Karen Kroll September 07, 2011

A new report from the Conference Board analyzes the emerging category of "human capital risk" and how compliance departments can help steer management clear of that strategic business threat. "There is a huge opportunity for the business, HR, and risk and compliance to think much more strategically about human capital," says Mary Young, one of the authors of the report.

Internal Auditors Get New Risk Certification Option

Tammy Whitehouse August 31, 2011

The Institute of Internal Auditors is launching a new professional certification for internal auditors, partly in response to the heightened importance of risk management in the wake of the financial crisis. The "Certification in Risk Management Assurance" will be awarded later this year, and internal auditors will need to meet criteria that substantiates their skill in auditing risk-management programs.

Studies Find Internal Audit Lacking in Leadership Skills

Tammy Whitehouse August 16, 2011

Two recent studies, one from the Institute of Internal Auditors and another from PwC, find that the internal audit profession lacks the "soft" skills needed in contemporary corporate life, such as critical thinking, communication, and leadership. "Internal audit needs to be part of a much more complex business environment, and it needs the skills to do that," says Jason Pett, a partner with PwC. More results inside.

New Guidance on Risk Appetite

Neil Baker May 04, 2011

The London-based Institute of Risk Management has released draft guidance aimed at helping organizations to quantify and communicate how willing they are to take risks. The guidance explains how an organization can determine its risk appetite and what role its board of directors should play in the process.

High-Profile Data Breaches Raise Security Alerts

Arielle Bikard May 03, 2011

The data security theft at Sony, which compromised the personal information of as many as 77 million users, is just the latest in a string of attacks on corporate databases. Even before that breach, Treasury officials were urging companies, especially those in the financial sector, to conduct periodic risk assessments of their information security programs and to institute other safeguards. Details inside.

Companies Failing to Learn Risk Lessons

Global Glimpses October 04, 2010

As the financial crisis abates, companies are likely to return to the limited “compliance-based” approach to risk management that got so many of them into trouble, according to a new study by accountants Grant Thornton.The firm surveyed senior executives at 465 U.K. and Irish companies and found “disappointing” attitudes to...

Housing Regulator Warms to Third-Party Risk

Matt Kelly May 11, 2010

We often talk around here about the risks that corporations face from their third parties: resellers, distributors, venture partners and so forth. Typically that discussion is in the context of the Justice Department or Securities and Exchange Commission cracking down on the risk of bribery. Well, now the Federal Housing...

Goldman Analysis: Lessons for CCOs

Matt Kelly April 18, 2010

The fraud charges leveled against Goldman Sachs on Friday are—or more accurately, could be—a pivotal moment as the United States continues its long, slow extrication from the financial crisis. The 22-page complaint filed by the Securities and Exchange Commission is almost too painful to read, filled with damning e-mail excerpts and fact...

What's Worrying Risk Officers in Financial Sector

Matt Kelly January 18, 2010

Last week I had the privilege again of hosting a Compliance Week editorial roundtable, this time gathering a dozen chief risk officers in the financial sector to hear their thoughts on the current challenges of risk management in their industry—which are more complicated than the risk management challenges in most...

Standard Chartered Overhauls Governance

Global Glimpses December 14, 2009

0 false 18 pt 18 pt 0 0 false false false Standard Chartered, the banking group, has overhauled its boardroom structures in an effort to improve its corporate governance. The bank is going to split a board committee that covers audit and risk issues into two new bodies. A risk...

Metrics for Compliance, Metrics for Risk

Matt Kelly November 18, 2009

Compliance Week had another one of its editorial roundtables this week, and as usual I had the privilege of leading an excellent discussion with compliance and risk executives facing some of the most formidable governance challenges out there. Our full coverage of the forum will appear in Compliance Week’s Dec....

The Myth of the Black Swan

Matt Kelly November 10, 2009

Perhaps it’s time to start shooting those black swans.For the last several months we’ve all heard more and more about risk management, primarily because a class of supposed geniuses on Wall Street ruined the economy for the rest of us. Now the buzzword in Washington is risk management, all the...

Audit Committees Feel “Very Effective,” Despite Crisis

Global Glimpses July 09, 2009

The quality of corporate governance among the world’s leading companies has been widely criticized of late, with some blaming poor boardroom practice in the financial sector for the global downturn. But audit committee members around the world feel they have been doing a good job, according to a new KPMG...

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Every week we chat with leading thinkers in compliance, auditing, risk management, public policy and more. These short (10-15 minutes) interviews are free to all. Follow Compliance Week podcasts on iTunes.

Compliance Week LinkedIn Group

Compliance Week now has a companion group on LinkedIn, where members can network and discuss the compliance and governance news of the day. Open to all compliance professionals, free to join.

Survey of the Week

Deloitte is conducting their annual Look Before You Leap: Managing Risks in Global Investments survey to better understand the approaches companies are taking to address compliance and integrity-related risks in emerging markets.