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April / May 2011: Special Report
Contents

SPECIAL REPORT: Cool strategems to find routes around risk

Risk is the stuff of banking. Managing risk to mitigate the exposure of customers and reduce the vulnerabilities of banks themselves – that’s the essence of the banking professional. When it works, it’s taken so much for granted that no-one seems to notice. When it fails it can be a personal tragedy, an institutional disaster and – as we’ve most recently experienced – a systemic catastrophe. But which risk predominates? In the pantheon of threats that simply must be addressed and professionally managed, which comes first? Here, Chartered Banker examines the leading candidates.

Who’ll kiss the frog?
Operational risk management is like the fairytale frog – the ugly little spectre from which executives instinctively recoil like so many fastidious princesses. JOHN THIRLWELL wants bankers to kiss the frog and transform it into the Prince Charming he believes it should be.

Delinquents rule, OK
Delinquency appears on every page of the latest 32-country report on Europe’s credit risk outlook. SHAYLA WALMSLEY explains why banks’ leading risk managers are so pessimistic.

The past won’t work
Most executives in the world’s largest banks say credit risk is their primary threat. So they’re developing more predictive analytics, reports WILL CAIN, rather than relying on historical data to assess customers’ credit status.

It’s macroprudential - our unlovely new buzzword
The Holy Grail for regulators is a regime to predict and forestall another systemic crisis in financial services. They think they’ve found it with an unlovely policy buzzword – macroprudential. WILL CAIN isn’t so sure.

Fraudsters’ new targets
Technology is making things easier for banking customers – and it’s transforming the opportunities for criminals. Fraud fighter JASON COSTAIN warns that today’s target isn’t credit cards, but online identities.

The data dilemma
Consolidating data onto a single platform in pursuit of efficiency and enhanced service is about as straightforward as the D-day landings, worries data migration expert BRIAN BRODIE.

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