In the video interview with the Financial Times, Sandeep Vishnu looks at the strategies to market survival, including the observation that there may be too many strategy choices. He outlines the guiding prinicpals in risk management in particular the lack of data and governance issues. While examining governance Sandeep outlines some lessons risk officers should take from the current environment, amount other things their data infrastruture and shouting loudly. The interview also presents information on the lack of regulation that led to the current state and what we can expect from regulators in the future, specifically how they can work better with business … or if they should.
In this podcast Jack Perkins of the Financial Times interviews, BearingPoint managing director, Brian Hart during the Financial Times Data Management and Use Editorial Breakfast. During the interview Brian addresses the economic turmoil and the lessons risk executives can take from recent activities. Brian outlines recommendations for executives on how they can manage the economic downturn and addresses the need for a cultural overhaul. Finally the podcast reviews regulators and their responsibilities to the market while outlining some factors for future success.
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Tagged Brian Hart, compensation, data management, finance, financial markets, Financial Times, governance, Jack Perkins, regulations, risk, risk management, transparency
Join BearingPoint Managing Director, Brian Hart, as he explores the importance of an adequate risk and performance platform and how it can help companies deal with the credit crisis. Given the scope, depth, and length of this crisis, our clients are clearly being forced to re-examine how they conduct business. The issues that we see are the most prevalent are the need to access capital, how to fund a balance sheet, earnings, acquisitions and dispositions, government intervention, and most importantly- the speculation around change. When an organization deals with these issues on a day-to-day basis, like we see happening now, we know we’ve entered crisis mode. This has many companies wondering what went wrong and how can we better equip ourselves for the future?
The single most important thing that needs to be addressed is the realization of how much capital is being used at a given time. Most people don’t realize how much capital they’re using because of their lack of transparency, and when they finally realize it, it’s too late. To come out of this, we’re asking people to watch very closely how much capital they are spending and to cut any unnecessary costs. This can be done by acknowledging the need for better data management and risk capabilities. BearingPoint has addressed this with a seven point analytical strategy that can assist clients with understanding what changes they need to make. In the podcast, you will hear important points, such as how to manage data, estimate risk, change current business processes and how to implement an integrated risk and performance framework.
Clearly this crisis has exposed a number of weaknesses in risk management across the sector. Most organizations still have basic issues around risk and transparency. This podcast addresses key areas that are lacking in the risk management sector; such as understanding your risks, what risks are making you money and how effectively your trading machine is working? There are many changes that need to be made across the entire financial services sector, and the key points that are addressed in the podcast can help you itemize an action plan to take the appropriate measures to ensure future success.
The global trade environment is complex—and steadily growing more so. International customs organizations and other regulatory bodies that govern international trade are becoming more adept at using technology to collaborate on and detect noncompliance with regulations and laws. Other factors, most notably terrorism, have added to organizations’ compliance burdens.
These burdens are not easily avoidable as organizations are beginning to realize that global trade is a critical part of their supply chains. Whether they ship products internationally, source raw materials from low-cost countries or set up operations in emerging markets to supply goods locally, today’s global businesses must find ways to cope with the many challenges of moving goods across international borders.
This paper explores new thinking around how to develop a global trade management strategy to seize the opportunities created by globalization while mitigating the risks.
With the recent market turmoil, the question has been raised: “Are traditional risk mitigation systems inadequate in times of crisis?”
Here are some steps organizations should consider to address risk management:
1. Push analytics to the limit. How you measure risk impacts how you address it.
2. Be strategic. Drive a comprehensive data strategy.
3. Examine your business processes. Change them if necessary.
4. Put better information and tools in the hands of deal makers. Empower CEOs with information on the risk environment.
5. Pursue capital arbitrage and compliance opportunities.
6. Jump start the incentive structure. Mobilize your workforce and address the human factor.
7. Implement a comprehensive, integrated performance and risk management framework.
This new thinking on risk management is explained in more detail in this paper. Find out what helps organizations address these issues and position themselves to deliver superior results.