SunGard executive vice president for risk management, David Rowe invites industry leaders to join a discussion community, offering thought leadership into all facets of risk management.
Forward-looking commentary will be posted weekly by Mr. Rowe to open discussion, with industry participants invited to comment and contribute.
David says: “In recent years I have had many opportunities to discuss financial risk management issues with a wide range of academics and practitioners, often related to my monthly column in Risk magazine. It occurred to me that a blog would be an excellent way to extend these bi-lateral conversations to a multilateral framework open to all interested parties. For many of the topics we will cover, there will be no definitive answers. Nevertheless, a variety of perspectives and opinions often helps to clarify the problems that these issues inevitably raise.”
David is executive vice president for risk management at SunGard. In this role he advises SunGard customers and business units on risk management functionality and development priorities in their software applications. He also speaks frequently at industry conferences and seminars and writes a monthly column for Risk magazine. He is also co-chair of the PRMIA Education Committee and member of the London chapter steering committee.
Is voluntary T+0 reconciliation realistic?
The publication of the third Counterparty Risk Management Policy Group position paper on August 6, 2008 represented a stark challenge to the OTC derivatives business. Co-chaired by Gerald Corrigan of Goldman Sachs and Douglas Flint of HSBC, the Policy Group includes four major investment banks, five global commercial banks, two major buy-side firms and one [...]
Contingent Credit Default Swaps
In the past year contingent credit default swaps (CCDS) have gained significant market visibility. These contracts provide default protection for an uncertain amount of exposure (the contingency implicit in the name) based on the fair market value of a reference swap. As I point out in my October Risk Analysis column, it is somewhat ironic [...]
Is it REALLY Alpha?
The daily reports of hedge fund losses seemingly triggered by, or secondary to, problems in the sub-prime mortgage markets raise an important question. How much of hedge fund gains are really the result of uncovering exploitable arbitrage opportunities wherever they may be found versus some form of alternative beta. In other words, is a significant [...]
Sub-prime Mortgages and the ?Alpha-seeking Beast?
At the second annual SunGard Senior Risk Managers? Roundtable in early June, considerably more attention was focused on hedge funds than had been the case in 2006. In addition to often cited concerns about the generally opaque nature of the underlying risk, considerable discussion centered on how objective and how reliable are the current market [...]
On-line Security and Identity Theft
Risk management is not just about credit and market risk. As pointed out in a response to Tim Trent last March (http://www4.sungard.com/blogs/riskManagement/#comment-11) the importance of maintaining customer confidence in a bank?s on-line security is a significant reputational issue. Furthermore, the issue is not just a defensive one. Banks that are recognized as taking on-line security [...]
GRC (Governance, Risk and Compliance): buzzword, nefarious plot or a new trend?
Governance, Risk and Compliance, or GRC for short, is a common phrase these days, especially in traditional auditing circles. Its proponents argue that it represents the start of a necessary effort to break down barriers that divide corporate oversight activities into needlessly competing silos. They argue that governance and compliance failures represent some [...]
Implications of Credit Trading for the Risks of Banks - Additional Thoughts
After completing my previous post, I came across a speech by Timothy Geithner on Credit Market Innovations and Their Implications.
(http://www.newyorkfed.org/newsevents/speeches/2007/gei070323.html) He doesn?t come to any firm conclusions (central bankers are, by nature, cautious folks.) Nevertheless, he does offer a useful summary of arguments on both sides of the question of how credit market innovations have [...]
Implications of Credit Trading for the Risks of Banks
One of the biggest trends of the past fifteen years has been the emergence of credit trading. The common view, to which I generally subscribe, is that this has made individual banks and the banking system as a whole safer. Certainly the dot com implosion in 2001 and 2002 had a remarkably modest impact by [...]
Capital Markets and Longevity Risk ? New Day or False Dawn?
I continue to believe that the broadening application of derivative-based capital market solutions to insurance risk will be a major story of the next five to ten years. That said, progress to date has been slow in both the life and the property and casualty arenas. Recently JP Morgan-Chase launched a new effort called LifeMetrics [...]
Where is risk management in its life cycle?
Beaumont Vance is the incoming editor of Risk Management Reports at http://www.riskcenter.com/. He took the occasion of assuming this role to write an interesting essay on risk management as a disruptive technology (http://www.riskcenter.com/story.php?id=14372) As background he cites a comparison of the evolution of the telegraph and the internet. From this experience he distills six typical [...]
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SunGard executive vice president for risk management, David Rowe invites industry leaders to join a discussion community, offering thought leadership into all facets of risk management.
Forward-looking commentary will be posted weekly by Mr. Rowe to open discussion, with industry participants invited to comment and contribute. 