Risk Management
Playing the Game of Risk in Workplace Education
In his acclaimed book, “A Theory of Fun for Game Design,” Raph Koster says: “Fun from games arises out of mastery. It arises out of comprehension. It is the act of solving puzzles that makes games fun. In other words, with games, learning is the drug.” Koster, a gaming industry thought leader, is focused on […]
Water, Water, Everywhere…And So Are Risks for Companies
It is easy to take water for granted, but a new report makes the case that it is behind an increasing number of risks businesses face and dealing with them goes beyond the traditional focus on conservation. The “CDP Global Water Report 2013,” released on Thursday, purports that “a misguided approach to water-related risk management […]
Extending Anti-Bribery Compliance to Third Parties
As companies continue to pursue new customers in emerging markets, they must constantly weigh the benefits of expansion with the risks that lurk there, including bribery and corruption risks. Relying on multiple partners in countries where bribes, gift giving, and mutual back scratching are a normal part of every-day business culture can make the chief […]
Risk Committees Go Mainstream
After the financial crisis, most big financial services firms added risk committees to the board to escalate the oversight of risk management. Now companies beyond Wall Street are warming up to the idea. Companies have traditionally housed risk oversight in the audit committee, but as new regulations have piled on more financial reporting responsibilities, “audit […]
JPMorgan Details $1.5 Billion Budget Boost For Internal Controls
JPMorgan Chase and regulators, according to published reports, are on the cusp of a $700-$800 million settlement over its “London Whale” trades, risky derivatives gambles that cost the bank more than $6 billion in losses and was initially hidden from shareholders. Perhaps in anticipation of that announcement, in a letter to all bank employees, CEO […]
New Breed of Online Businesses Face Unique Transaction Risks
Empowered by “Web 2.0” and built on the foundation of social media, a new wave of companies is taking shape, described as “next generation” businesses. Companies with names like AirBnB, Uber, Lyft, and Square are raising new compliance and regulatory challenges. Many are non-traditional, dabbling in virtual currencies or engaging in peer-to-peer transactions, or are […]
JPMorgan to Spend $4 Billion on Compliance and Risk Efforts
JPMorgan Chase announced this week that it plans to pour an additional $4 billion into compliance and risk management efforts as the bank continues to battle a host of legal troubles. As part of that effort, JPMorgan said it plans to spend $1.5 billion on risk management and regulatory compliance efforts, including increasing its risk-control […]
CFTC Takes Another Step Toward High-Speed Trading Rules
In the aftermath of two Nasdaq shutdowns in as many weeks that were blamed on technology glitches, and responding to longstanding concerns about high-speed and automated trading, the Commodity Futures Trading Commission on Monday published a Concept Release that will serve as a precursor to forthcoming rules, restrictions, and trading limits. According to a statement […]
Activists Detail Their Expectations for Conflict Minerals Reports
As companies prepare their first required reports on conflict mineral use for the Securities and Exchange Commission, a coalition of socially responsible investors and human rights groups have laid out their suggestions and expectations. A paper released on Thursday, “Expectations for Companies’ Conflict Minerals Reporting,” describes the content sustainability and human rights activists want to […]