Good Risk Governance Pays

Good Risk Governance Pays

Investment Best Practices | Risk Management | Valuation

Tag Archives: Risk Management

The Risk Of Taking Low Maintenance Customers For Granted

Posted in Customer Service, Risk Management
Treating customers poorly makes little sense, assuming a company considers them profitable and wants them to stay. The logic is straightforward. A diversified steady (or better yet growing) source of sales revenue enhances enterprise value and lowers business risk. Yet many organizations still struggle with all things customer service from (1) determining what buyers should receive for their money (2) calculating metrics… Continue Reading

Victoria’s Secret and Financial Benchmarking

Posted in Disclosure and Transparency, Investment Management, Risk Management
Its iconic fashion show won’t occur until this fall but Victoria’s Secret is in the headlines for another reason. Owner L. Brands, Inc. (“LB” ticker) will no longer mail about 300 million catalogs each year. The goal is to save between $125 to $150 million and be more eco-friendly. Shoppers can still purchase online or visit… Continue Reading

Assessing the Cost of Prevention

Posted in Risk Management
In anticipation of what the media has been describing as the worst blizzard in the history of the Northeast, I scurried to buy firewood, extra batteries, matches, bottled water, blankets and non-perishable food. I cooked ahead of time in case we lost power. I regularly boiled water and stored it in a large thermos. Somewhat amusingly, my husband… Continue Reading

Investment Risk Management, Kanye West and Paul McCartney

Posted in Broker Dealers, Compliance, Disclosure and Transparency, FINRA, Investment Management, Liquidity, Regulation, Risk Management, Valuation
Thank heavens for the absurdities of life. A few chuckles here and there make the difference between blah and pizzazz in life. A recent example is the Twitterverse response to a recent artistic collaboration between Kanye West and Paul McCartney. Supposedly some of the members of the younger generation are unaware of this Beatle’s musical eminence. See “Genius… Continue Reading

Investment Risk and Litigation

Posted in Compliance, Financial Expert, Investment Management, Litigation, Regulation, Risk Management
For anyone involved in compliance, 2015 may be the year that gives “so much to do, so little time” new meaning. In hs December 10, 2014 “Remarks to the ICI 2014 Securities Law Developments Conference,” Norm Champ describes points to keep in mind. Notable is his mention of risk monitoring as a key area for his… Continue Reading

Risk Management by Robot

Posted in Compliance, Derivatives, Litigation, Model Risk, Regulation, Risk Management
Risk Magazine editor Lukas Becker has an eye-popping article in the September issue about automated risk management. (See “Robot risk managers excite swap market-makers,” September 1, 2014). Given the constraints on profitability, in part due to the costs of rising regulation, interest rate swap dealers are seeking a way to use algorithms to “monitor multiple… Continue Reading

The Frog and the Investment Fiduciary

Posted in Risk Management
  A few weeks ago, I attended a lecture about preparing for transformation. If there is any industry that is undergoing rapid change, it is the investment management arena. New regulations, pressures from institutions like pension funds and endowments to reduce fees and global market convergence each present a unique challenge and an opportunity. One point made… Continue Reading

Risk by Any Other Name…

Posted in Disclosure and Transparency, Investment Management, Model Risk, Risk Management
Reading “Like, Degrading the Language? No Way” (New York Times, April 6, 2014) struck a nerve. The author of this opinion piece, Associate Professor of English John McWhorter at Columbia University asserts that the unfortunately popular (my view) use of the word like – “used so prolifically by people under a certain age” – is a… Continue Reading

Muni Bonds, Pensions and Financial Disclosures: Compliance, Litigation and Regulatory Trends

Posted in Compliance, Disclosure and Transparency, Litigation, Municipal Bonds, Regulation
Mark your calendars to attend “Muni Bonds, Pensions and Financial Disclosures: Compliance, Litigation and Regulatory Trends.” At a time when unfunded pension and health care obligations are accelerating the budgetary crisis for some municipalities, experts fear that current problems are the tip of the iceberg. A new focus on accounting rules, the quality of disclosure to… Continue Reading

Swap Market Participants – How to Qualify for the CFTC’s End-User Exception and Properly Implement a Hedging Program

Posted in Derivatives, Risk Management
Join us for a complimentary educational webinar on December 4, 2012 from 1:00 PM to 2:15 PM EST to learn more about the Dodd-Frank swaps end-user exemption, the role of the CFTC and corporate hedging issues. Click to register for this free swaps end-user event, sponsored by FTI Consulting. In the aftermath of the 2008… Continue Reading

Risk Management for Financial Service Firms: Getting It Right

Posted in Risk Management
Join Dr. Susan Mangiero and other esteemed speakers in Seattle on October 5,2012 for an important conference entitled “Managing Risk in a Complex World.” Part of the University of Washington Law, Business and Entrepreneurship Program, this event features speakers such as Mr. Bill Ayer, Chairman of the Alaska Air Group. Dr. Mangiero, a managing director… Continue Reading

Counterparty Credit Health and Duration Risk Gets More Attention

Posted in Risk Management
According to a new survey conducted by the Federal Reserve about credit terms for the financing of securities and over-the-counter derivative deals, compliance risk continues to garner attention. In a 106 page write-up of results from “The June 2012 Senior Credit Officer Opinion Survey on Dealer Financing Terms,” nearly seventy percent of the respondents affirmed that attention and resources… Continue Reading

ERISA Pension Plans: Due Diligence for Hedge Funds and Private Equity Funds

Posted in Compliance, ERISA, Fees, Financial Expert, Fraud, Governance, Hedge Fund, Litigation, Pension, Private Equity, Risk Management, Valuation
Join me on May 1, 2012 for a timely and interesting program about alternative investment fund due diligence and other considerations for ERISA plan sponsors, their counsel and consultants. Click here for more information. This CLE webinar will provide ERISA and asset management counsel with a review of effective due diligence practices by institutional investors. Best practices… Continue Reading

Pension Risk Management and Governance: Challenges and Opportunities in a New Era

Posted in ERISA, Financial Expert, Governance, Pension, Risk Management
Please join me and fellow panelists on January 24, 2012 fro. 4 to 6 pm for a topical discussion about pension risk management and governance. Given that the last few years have posed unprecedented challenges for plan sponsors, both corporate and public, as well as their asset managers and consultants, life in employee benefit land… Continue Reading

Prioritizing Risk Management

Posted in Risk Management
I recently had the pleasure of contributing an article about the importance of risk management and service provider due diligence to The Glass Hammer website. For those who are not familiar with the group, check out to learn about this award-winning blog and online community created for women executives in finance, law, technology and… Continue Reading

Risk Management Survey Says More Work Is Needed

Posted in Compliance, Derivatives, Disclosure and Transparency, Financial Reporting, Model Risk, Risk Management
After the last few years, it seemed that risk managers were finally getting their due respect. Alas, a new survey suggests that more work remains to be done. According to “Too good to fail? New challenges for risk management in financial services” by Rob Mitchell with the Economist Intelligence Unit, “Inculcating and embedding a stronger… Continue Reading

Fiduciary Duties, Post Madoff

Posted in Broker Dealers, Compliance, Fiduciary Liability, Hedge Fund, Litigation, Risk Management
In “The Post-Madoff Emergence of a Fiduciary Duty of Due Diligence – Recent Regulatory Enforcement Actions and Their Impact on Best Practices for Investment Managers” (Practical Compliance & Risk Management For The Securities Industry, September-October 2009), Attorneys Scott A. Meyers and James G. Martignon describe a renewed scrutiny of the relationship between hedge funds, investment… Continue Reading