Operational Risk

    News on frameworks, regulations, and major events related to risks arising from internal processes, systems failures, human errors, or external disruptions.

    Market Risk

    HKMA Issues Guidance on Reporting ARR Positions in IRRBB Returns

    By Manesh Samtani | 30/03/2021

    The guidelines say alternative volatility estimates may be used value new ARR options in cases where there is not enough implied interest rate volatility data.

    Credit Risk

    Hedge Fund Collapse Sparks Billions in Losses for Banks

    By Manesh Samtani | 30/03/2021

    The SEC, FSA, and FINMA are monitoring the situation, after the collapse of Archegos Capital Management left Nomura and Credit Suisse with billions in losses.

    Operational Risk

    FCA, BOE Set Out Priority Areas for LIBOR Transition

    By Manesh Samtani | 30/03/2021

    Supervisory tools may be used to address insufficient progress and poor risk management or governance.

    Operational Risk

    Continued LIBOR Use Presents ‘Safety and Soundness’ Risks

    By Manesh Samtani | 25/03/2021

    ARRC will not be able to recommend a forward-looking SOFR term rate by mid-2021. New York has approved legislation to facilitate transition for tough legacy contracts.

    Liquidity Risk

    RBNZ Orders Westpac NZ to Address Risk Governance Issues

    By Ranamita Chakraborty | 24/03/2021

    Westpac’s New Zealand unit breached the RBNZ’s liquidity policy by incorrectly calculating mismatch ratios.

    Operational Risk

    Japan FSA to Inspect Mizuho Over System Failures

    By Ranamita Chakraborty | 24/03/2021

    The FSA will consider whether to take disciplinary action such as issuing a business improvement order against the bank.

    Payments & Settlements

    SEBI Issues Guidelines for MIIs on Handling Disruptions

    By Sanday Chongo Kabange | 24/03/2021

    The new guidelines follow last month’s trading halt at the NSE. The exchange has submitted a root cause analysis to SEBI.

    Operational Risk

    MAS, ABS Publish Guidance on Workplace Design Strategies

    By Editors | 24/03/2021

    Strategies and good practices presented in a newly published study are aimed at supporting FIs in building pandemic-resilient workplaces.

    Operational Risk

    APRA Warns ADIs of Risks from Indemnities in Divestment Transactions

    By Ranamita Chakraborty | 24/03/2021

    Indemnities provided to acquiring entities as part of divestment transactions should be capped and time bound. Operational risk capital should be held to reflect the level of risk.

    Alternative Markets

    New Rules for Private Equity Funds Take Effect in Korea

    By Ranamita Chakraborty | 22/03/2021

    The new rules imposing stricter requirements on leverage, cross trading, sales practices and risk management, among other areas.

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