The Big Picture: Beyond Compliance To Risk ManagementNeira Jones
1) Compliance alone does not eliminate risk, and companies need governance plans to manage resources and risks effectively.
2) Recent high-profile data breaches have exposed inadequacies in current governance, risk, and compliance practices, prompting stronger oversight.
3) By connecting controls to risks, companies can achieve improvements in enterprise risk management and use GRC solutions to help make this connection.
This document discusses how the global financial crisis has created new challenges for financial institutions and I.T. departments. It notes that the "new hard times" are characterized by tighter credit, declining property prices, and increased regulation. This has put pressure on financial institutions to focus on survival through compliance and risk management, but they still need to enable growth. The document argues that traditional I.T. systems are a barrier to addressing both survival and growth needs, as they are inflexible, create information silos, and slow product development.
ACI's AML & OFAC Compliance for the Insurance Industry PPT (Day 2)tnguyenaci
This document discusses leveraging existing compliance resources to increase efficiency and reduce costs while ensuring legal and regulatory compliance. It addresses benchmarking processes against other organizations, determining when to outsource functions, and leveraging information across departments. Specific issues covered include the intersection of anti-money laundering (AML), sanctions, foreign corrupt practices act (FCPA), and data privacy laws. Controls and oversight of third parties are also discussed, including potential red flags for FCPA violations related to foreign agents, payments, and high-risk countries or industries.
AML and OFAC Compliance for the Insurance IndustryRachel Hamilton
This document contains best practice tips from several experts on anti-money laundering (AML) and sanctions compliance. Some of the key tips discussed include developing a standardized framework for assessing risks and controls across different business units; tailoring compliance training to specific roles and business areas; understanding business operations in depth to design effective screening processes; and clearly communicating compliance risks and implications to senior management.
ACI's AML & OFAC Compliance for the Insurance Industry (Day 1)tnguyenaci
This document discusses sanctions compliance requirements for insurance and reinsurance companies. It provides an overview of key U.S. sanctions programs and definitions of prohibited "facilitation". The document outlines best practices for compliance programs, including screening policies and procedures, training, and oversight. It also discusses challenges international insurers face in complying with overlapping sanctions regimes and the importance of robust compliance programs.
USI Real Estate Practice Group Conceptual Overviewssheiser
This document provides an overview of USI Southwest, a full service insurance brokerage and risk management firm focused on serving the real estate industry. Some key points:
- USI Southwest is a portfolio company of Goldman Sachs Capital Partners and has over 3,500 employees in 19 states.
- They provide a range of brokerage, risk management, and consulting services including property/casualty insurance, health/benefits, risk analysis, and more.
- USI Southwest specializes in complex real estate deals including development, construction, and private equity. They aim to develop long-term relationships and provide creative solutions.
- Their services also include risk analysis reports, due diligence, insurance
USI Real Estate Practice Group Conceptual Overviewdonniewhitworth
USI Southwest is a full-service insurance brokerage focused on serving the real estate industry. It has over 3,500 professionals in 19 states and provides various property, casualty, health, and other insurance products and services. USI Southwest specializes in analyzing business risks, assessing risk management practices, and designing cost-effective insurance solutions for real estate firms. It has extensive experience evaluating operational, financial, and other risks specific to the real estate industry. USI Southwest aims to develop long-term strategic partnerships with clients to improve the efficiency and returns of their real estate transactions.
An exclusive presentation by Mr. Mazhar Leghari, Business Development Solution Manager, SAS Middle East FZ LLC; on ‘Building for Success: The Foundation for Achievable MDM’. The presentation was made at SAS Forum India 2013.
The Big Picture: Beyond Compliance To Risk ManagementNeira Jones
1) Compliance alone does not eliminate risk, and companies need governance plans to manage resources and risks effectively.
2) Recent high-profile data breaches have exposed inadequacies in current governance, risk, and compliance practices, prompting stronger oversight.
3) By connecting controls to risks, companies can achieve improvements in enterprise risk management and use GRC solutions to help make this connection.
This document discusses how the global financial crisis has created new challenges for financial institutions and I.T. departments. It notes that the "new hard times" are characterized by tighter credit, declining property prices, and increased regulation. This has put pressure on financial institutions to focus on survival through compliance and risk management, but they still need to enable growth. The document argues that traditional I.T. systems are a barrier to addressing both survival and growth needs, as they are inflexible, create information silos, and slow product development.
ACI's AML & OFAC Compliance for the Insurance Industry PPT (Day 2)tnguyenaci
This document discusses leveraging existing compliance resources to increase efficiency and reduce costs while ensuring legal and regulatory compliance. It addresses benchmarking processes against other organizations, determining when to outsource functions, and leveraging information across departments. Specific issues covered include the intersection of anti-money laundering (AML), sanctions, foreign corrupt practices act (FCPA), and data privacy laws. Controls and oversight of third parties are also discussed, including potential red flags for FCPA violations related to foreign agents, payments, and high-risk countries or industries.
AML and OFAC Compliance for the Insurance IndustryRachel Hamilton
This document contains best practice tips from several experts on anti-money laundering (AML) and sanctions compliance. Some of the key tips discussed include developing a standardized framework for assessing risks and controls across different business units; tailoring compliance training to specific roles and business areas; understanding business operations in depth to design effective screening processes; and clearly communicating compliance risks and implications to senior management.
ACI's AML & OFAC Compliance for the Insurance Industry (Day 1)tnguyenaci
This document discusses sanctions compliance requirements for insurance and reinsurance companies. It provides an overview of key U.S. sanctions programs and definitions of prohibited "facilitation". The document outlines best practices for compliance programs, including screening policies and procedures, training, and oversight. It also discusses challenges international insurers face in complying with overlapping sanctions regimes and the importance of robust compliance programs.
USI Real Estate Practice Group Conceptual Overviewssheiser
This document provides an overview of USI Southwest, a full service insurance brokerage and risk management firm focused on serving the real estate industry. Some key points:
- USI Southwest is a portfolio company of Goldman Sachs Capital Partners and has over 3,500 employees in 19 states.
- They provide a range of brokerage, risk management, and consulting services including property/casualty insurance, health/benefits, risk analysis, and more.
- USI Southwest specializes in complex real estate deals including development, construction, and private equity. They aim to develop long-term relationships and provide creative solutions.
- Their services also include risk analysis reports, due diligence, insurance
USI Real Estate Practice Group Conceptual Overviewdonniewhitworth
USI Southwest is a full-service insurance brokerage focused on serving the real estate industry. It has over 3,500 professionals in 19 states and provides various property, casualty, health, and other insurance products and services. USI Southwest specializes in analyzing business risks, assessing risk management practices, and designing cost-effective insurance solutions for real estate firms. It has extensive experience evaluating operational, financial, and other risks specific to the real estate industry. USI Southwest aims to develop long-term strategic partnerships with clients to improve the efficiency and returns of their real estate transactions.
An exclusive presentation by Mr. Mazhar Leghari, Business Development Solution Manager, SAS Middle East FZ LLC; on ‘Building for Success: The Foundation for Achievable MDM’. The presentation was made at SAS Forum India 2013.
Concerned About Vendor Management 10 30 12wstippich
Technology companies increasingly share their critical information assets and outsource business and IT processes to third-party service providers. In this presentation, Grant Thornton LLP and TechAmerica walk you through how technology companies can manage this third-party risk.
This document discusses the development of enterprise risk management (ERM) in the insurance industry. It provides context on how the Global Financial Crisis highlighted weaknesses in risk management and increased regulatory focus on ERM. It outlines how ERM frameworks assess different types of risk, establish risk appetites and tolerances, and integrate risk considerations into strategic decision making. The role of actuaries in leading ERM implementation for insurers is also discussed.
Intellectual property like patents, trademarks, and copyrights can be used as collateral to secure financing like loans or securitized bonds. There are benefits to using IP as collateral such as transferring risk, increasing returns through leverage, and providing capital that does not dilute equity. For financing, lenders primarily consider assets with identifiable cash flows from licensing agreements. They analyze the cash flow history and creditworthiness of licensees. Case studies demonstrate approaches to valuing IP for collateral, including considering liquidation value through establishing a hypothetical new company using the IP.
How do you monitor your Basel III compliance? Pactera_US
This document discusses Basel III compliance and operational risk measurement and reporting requirements for banks. It summarizes the key principles for effective risk data aggregation and reporting established by the Basel Committee on Banking Supervision. These include governance, data accuracy and integrity, completeness, timeliness, and adaptability of risk reporting. The document also provides examples of operational risk activity and business reporting, highlighting the largest losses come from retail banking and external fraud. It concludes with best practices for a pragmatic approach to risk detection and transparent, understandable reporting to improve risk management.
This document provides advice to financial advisors on how to help wealthy clients protect their assets from lawsuits. It recommends that advisors:
1) Educate clients on the growing risk of lawsuits and how to compartmentalize assets using tools like LLCs, limited partnerships, and asset protection trusts to shelter 90% or more of a client's net worth.
2) Determine what defensive planning clients have already done, as things like revocable living trusts are not sufficient for asset protection.
3) Advise clients to properly title assets to legitimate entities with real business purposes to make piercing the corporate veil more difficult.
Enterprise risk management is not just a process credit unions utilize to mitigate and manage the negative consequences of normal business operations, it is a practice of balancing risk and profitability. By understanding and managing the critical uncertainties that affect day-to-day business, credit unions can execute the proper strategies to achieve their performance goals in a post-financial crisis era. In this 2011 NAFCU Annual Conference session you learn how to apply ERM to your corporate strategies, assure management that risks are properly identified and balance risk management and business objectives.
Presented by Radu Miclaus, Senior Analytics Solution Architect, SAS Institute, Inc.
More info at http://www.nafcu.org/sas
Systar's Credit Risk Decisioning for ACH application provides real-time credit risk information from across a bank's systems to help bankers make informed just-in-time decisions on ACH credit exposure. The application collects and correlates customer data to present key risk metrics on pending ACH files through intuitive dashboards. This helps bankers balance risk with customer service by avoiding credit being denied or extended erroneously.
This document summarizes a white paper about recognizing and addressing first-party fraud (FPF). Some key points:
- FPF occurs when individuals commit fraud using their own identities, intending not to pay their debts, and costs financial institutions billions annually. However, it is often misclassified as regular bad debt rather than fraud.
- Rates of FPF are estimated to be between 5-20% of losses classified as bad debt. Total annual uncollectible revolving consumer credit in the US is about $85 billion, so FPF costs between $4-17 billion per year.
- The white paper outlines different types of FPF behaviors and profiles, such as "bust-out fraud
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks Infosys Finacle
This document discusses the need for banks to take a holistic approach to managing reputation risk. Currently, most banks silo each type of risk (e.g. credit, market, operational) without considering how they interconnect and impact reputation. The document advocates looking beyond individual risk departments to foster a culture where all employees understand how their actions can affect reputation risk. It also suggests learning from other industries' reputation risk practices and using new technologies like analytics and social media monitoring to proactively manage this critical intangible asset.
ACTEC Journal - Practical Guidance For Trustee Risk Managementlwolven
This document discusses the increasing risks and responsibilities faced by trustees. It notes that fiduciary litigation is on the rise as beneficiaries more frequently seek legal recourse for perceived wrongs. Even attorneys well-versed in fiduciary law are sometimes hesitant to take on trustee roles given the liability risks. The document outlines the duties and standards required of trustees, including acting with ordinary prudence. It also discusses scenarios where trustees can face liability, such as for environmental contamination on trust property or failing to identify imprudent investments.
KJW - Spring 2015 - Guide to Transaction OpinionsKyle Wishing
This document provides an overview of fairness opinions and solvency opinions that are commonly provided by independent financial advisors for corporate transactions. A fairness opinion expresses whether a proposed transaction is fair from a financial point of view to assist parties with fiduciary duties like boards of directors. Fairness considers both aggregate and relative fairness to shareholders. Fairness opinions are not recommendations but can reassure parties and show fiduciaries acted reasonably. They are most appropriate when conflicts of interest exist, such as mergers, buyouts, or changes in control. Solvency opinions assess if a transaction leaves a company solvent by comparing assets to liabilities.
1. Credit card issuer fraud losses remain well-contained at around $1 billion annually despite rising volumes, though total card-related fraud costs may exceed $16 billion due to additional stakeholders like merchants and consumers.
2. Purposeful data breaches targeting payment card data are a major challenge, driving a thriving secondary market in stolen card information and products.
3. Enterprise fraud management solutions aiming to leverage data across multiple products may provide improved detection, but organizational barriers remain as issuers seek added value from multi-product implementations.
This document discusses the current phase of the "Great Liquidation and Great Litigation" and opportunities for distressed credit investors. It outlines that the current phase is playing out on an even larger scale than previously described, providing many attractive investment opportunities. Experience navigating past credit cycles, creativity, credibility, and strong execution abilities are key to successfully investing across the credit spectrum. The greatest returns can be achieved by those with extensive experience, the right investment structure, and sufficient resources to identify and capitalize on idiosyncratic opportunities globally.
Has your credit union considered how member relations, legal compliance and brand reputation might be affected during a data breach? In this 2012 NAFCU Technology & Security Conference session recording you will learn about the risks of data breaches and how they could impact your credit union. http://www.nafcu.org/affinion
CreditRiskMonitor is designed to save you time. Created specifically for the corporate credit professional, it provides real-time financial information analysis and news on over 40,000 public companies worldwide.For supply-side professionals, CreditRiskMonitor (www.crmz.com) helps procurement directors and supply-chain managers reduce risk by monitoring the financial condition of their critical vendors. Our corporate database helps with strategic sourcing to evaluate, identify high-risk companies and continuously alert you of changes in the financial health of your vendors.
Citigroup to pay $285 million to settle SEC charges for misleading investorsAndres Baytelman
Citigroup agreed to pay $285 million to settle SEC charges that it misled investors about a collateralized debt obligation (CDO) tied to the U.S. housing market. Citigroup helped select assets for the CDO that subsequently declined in value, while taking a short position against those same assets, without disclosing its role to investors. The CDO defaulted within months, costing investors nearly their entire investments, while Citigroup earned $160 million in fees and trading profits from its bet against the CDO. A Citigroup employee and Credit Suisse entities were also charged for their roles by the SEC.
Compendio sistematizado de regulaciones USA relevantes en materia de fraude corporativo, corrupción, compliance y eventual riesgo penal internacional (también, en varias de ellas, para empresas chilenas, o sus dueños y ejecutivos)
SEC charges seven former Siemens executives with bribing leaders in ArgentinaAndres Baytelman
The SEC charged seven former Siemens executives with violating the FCPA by participating in a decade-long bribery scheme to pay over $100 million to high-ranking Argentine officials, including two former presidents, to retain a $1 billion contract. The executives falsified documents and used U.S. bank accounts to facilitate some bribe payments. One executive settled the charges by paying a $40,000 fine without admitting guilt.
A lawyer’s guide to the top 13 social media issuesAndres Baytelman
This document provides a summary of 13 common social media issues that employers may face. It discusses issues such as whether employers must monitor employee email, whether they can monitor personal email accessed at work, and whether they can monitor an employee's social media use. The document outlines relevant court cases and concludes that while employers can monitor work email and social media, they must be careful not to engage in surreptitious monitoring that could violate privacy laws. It also notes some states prohibit accessing electronic communications without authorization.
Report 2008. Electronic Breaches Top All RecordsAndres Baytelman
The document summarizes a report from Verizon Business on data breaches in 2008. Some key findings from the report include:
- More electronic records were breached in 2008 than the previous four years combined, fueled by targeting of financial services and credit card transactions.
- 81% of organizations subject to PCI security standards were found non-compliant before being breached.
- 31% of breaches were in retail, and 93% of compromised records were related to financial services/credit cards.
- Nearly nine out of 10 breaches were considered avoidable if basic security practices had been followed.
Concerned About Vendor Management 10 30 12wstippich
Technology companies increasingly share their critical information assets and outsource business and IT processes to third-party service providers. In this presentation, Grant Thornton LLP and TechAmerica walk you through how technology companies can manage this third-party risk.
This document discusses the development of enterprise risk management (ERM) in the insurance industry. It provides context on how the Global Financial Crisis highlighted weaknesses in risk management and increased regulatory focus on ERM. It outlines how ERM frameworks assess different types of risk, establish risk appetites and tolerances, and integrate risk considerations into strategic decision making. The role of actuaries in leading ERM implementation for insurers is also discussed.
Intellectual property like patents, trademarks, and copyrights can be used as collateral to secure financing like loans or securitized bonds. There are benefits to using IP as collateral such as transferring risk, increasing returns through leverage, and providing capital that does not dilute equity. For financing, lenders primarily consider assets with identifiable cash flows from licensing agreements. They analyze the cash flow history and creditworthiness of licensees. Case studies demonstrate approaches to valuing IP for collateral, including considering liquidation value through establishing a hypothetical new company using the IP.
How do you monitor your Basel III compliance? Pactera_US
This document discusses Basel III compliance and operational risk measurement and reporting requirements for banks. It summarizes the key principles for effective risk data aggregation and reporting established by the Basel Committee on Banking Supervision. These include governance, data accuracy and integrity, completeness, timeliness, and adaptability of risk reporting. The document also provides examples of operational risk activity and business reporting, highlighting the largest losses come from retail banking and external fraud. It concludes with best practices for a pragmatic approach to risk detection and transparent, understandable reporting to improve risk management.
This document provides advice to financial advisors on how to help wealthy clients protect their assets from lawsuits. It recommends that advisors:
1) Educate clients on the growing risk of lawsuits and how to compartmentalize assets using tools like LLCs, limited partnerships, and asset protection trusts to shelter 90% or more of a client's net worth.
2) Determine what defensive planning clients have already done, as things like revocable living trusts are not sufficient for asset protection.
3) Advise clients to properly title assets to legitimate entities with real business purposes to make piercing the corporate veil more difficult.
Enterprise risk management is not just a process credit unions utilize to mitigate and manage the negative consequences of normal business operations, it is a practice of balancing risk and profitability. By understanding and managing the critical uncertainties that affect day-to-day business, credit unions can execute the proper strategies to achieve their performance goals in a post-financial crisis era. In this 2011 NAFCU Annual Conference session you learn how to apply ERM to your corporate strategies, assure management that risks are properly identified and balance risk management and business objectives.
Presented by Radu Miclaus, Senior Analytics Solution Architect, SAS Institute, Inc.
More info at http://www.nafcu.org/sas
Systar's Credit Risk Decisioning for ACH application provides real-time credit risk information from across a bank's systems to help bankers make informed just-in-time decisions on ACH credit exposure. The application collects and correlates customer data to present key risk metrics on pending ACH files through intuitive dashboards. This helps bankers balance risk with customer service by avoiding credit being denied or extended erroneously.
This document summarizes a white paper about recognizing and addressing first-party fraud (FPF). Some key points:
- FPF occurs when individuals commit fraud using their own identities, intending not to pay their debts, and costs financial institutions billions annually. However, it is often misclassified as regular bad debt rather than fraud.
- Rates of FPF are estimated to be between 5-20% of losses classified as bad debt. Total annual uncollectible revolving consumer credit in the US is about $85 billion, so FPF costs between $4-17 billion per year.
- The white paper outlines different types of FPF behaviors and profiles, such as "bust-out fraud
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks Infosys Finacle
This document discusses the need for banks to take a holistic approach to managing reputation risk. Currently, most banks silo each type of risk (e.g. credit, market, operational) without considering how they interconnect and impact reputation. The document advocates looking beyond individual risk departments to foster a culture where all employees understand how their actions can affect reputation risk. It also suggests learning from other industries' reputation risk practices and using new technologies like analytics and social media monitoring to proactively manage this critical intangible asset.
ACTEC Journal - Practical Guidance For Trustee Risk Managementlwolven
This document discusses the increasing risks and responsibilities faced by trustees. It notes that fiduciary litigation is on the rise as beneficiaries more frequently seek legal recourse for perceived wrongs. Even attorneys well-versed in fiduciary law are sometimes hesitant to take on trustee roles given the liability risks. The document outlines the duties and standards required of trustees, including acting with ordinary prudence. It also discusses scenarios where trustees can face liability, such as for environmental contamination on trust property or failing to identify imprudent investments.
KJW - Spring 2015 - Guide to Transaction OpinionsKyle Wishing
This document provides an overview of fairness opinions and solvency opinions that are commonly provided by independent financial advisors for corporate transactions. A fairness opinion expresses whether a proposed transaction is fair from a financial point of view to assist parties with fiduciary duties like boards of directors. Fairness considers both aggregate and relative fairness to shareholders. Fairness opinions are not recommendations but can reassure parties and show fiduciaries acted reasonably. They are most appropriate when conflicts of interest exist, such as mergers, buyouts, or changes in control. Solvency opinions assess if a transaction leaves a company solvent by comparing assets to liabilities.
1. Credit card issuer fraud losses remain well-contained at around $1 billion annually despite rising volumes, though total card-related fraud costs may exceed $16 billion due to additional stakeholders like merchants and consumers.
2. Purposeful data breaches targeting payment card data are a major challenge, driving a thriving secondary market in stolen card information and products.
3. Enterprise fraud management solutions aiming to leverage data across multiple products may provide improved detection, but organizational barriers remain as issuers seek added value from multi-product implementations.
This document discusses the current phase of the "Great Liquidation and Great Litigation" and opportunities for distressed credit investors. It outlines that the current phase is playing out on an even larger scale than previously described, providing many attractive investment opportunities. Experience navigating past credit cycles, creativity, credibility, and strong execution abilities are key to successfully investing across the credit spectrum. The greatest returns can be achieved by those with extensive experience, the right investment structure, and sufficient resources to identify and capitalize on idiosyncratic opportunities globally.
Has your credit union considered how member relations, legal compliance and brand reputation might be affected during a data breach? In this 2012 NAFCU Technology & Security Conference session recording you will learn about the risks of data breaches and how they could impact your credit union. http://www.nafcu.org/affinion
CreditRiskMonitor is designed to save you time. Created specifically for the corporate credit professional, it provides real-time financial information analysis and news on over 40,000 public companies worldwide.For supply-side professionals, CreditRiskMonitor (www.crmz.com) helps procurement directors and supply-chain managers reduce risk by monitoring the financial condition of their critical vendors. Our corporate database helps with strategic sourcing to evaluate, identify high-risk companies and continuously alert you of changes in the financial health of your vendors.
Citigroup to pay $285 million to settle SEC charges for misleading investorsAndres Baytelman
Citigroup agreed to pay $285 million to settle SEC charges that it misled investors about a collateralized debt obligation (CDO) tied to the U.S. housing market. Citigroup helped select assets for the CDO that subsequently declined in value, while taking a short position against those same assets, without disclosing its role to investors. The CDO defaulted within months, costing investors nearly their entire investments, while Citigroup earned $160 million in fees and trading profits from its bet against the CDO. A Citigroup employee and Credit Suisse entities were also charged for their roles by the SEC.
Compendio sistematizado de regulaciones USA relevantes en materia de fraude corporativo, corrupción, compliance y eventual riesgo penal internacional (también, en varias de ellas, para empresas chilenas, o sus dueños y ejecutivos)
SEC charges seven former Siemens executives with bribing leaders in ArgentinaAndres Baytelman
The SEC charged seven former Siemens executives with violating the FCPA by participating in a decade-long bribery scheme to pay over $100 million to high-ranking Argentine officials, including two former presidents, to retain a $1 billion contract. The executives falsified documents and used U.S. bank accounts to facilitate some bribe payments. One executive settled the charges by paying a $40,000 fine without admitting guilt.
A lawyer’s guide to the top 13 social media issuesAndres Baytelman
This document provides a summary of 13 common social media issues that employers may face. It discusses issues such as whether employers must monitor employee email, whether they can monitor personal email accessed at work, and whether they can monitor an employee's social media use. The document outlines relevant court cases and concludes that while employers can monitor work email and social media, they must be careful not to engage in surreptitious monitoring that could violate privacy laws. It also notes some states prohibit accessing electronic communications without authorization.
Report 2008. Electronic Breaches Top All RecordsAndres Baytelman
The document summarizes a report from Verizon Business on data breaches in 2008. Some key findings from the report include:
- More electronic records were breached in 2008 than the previous four years combined, fueled by targeting of financial services and credit card transactions.
- 81% of organizations subject to PCI security standards were found non-compliant before being breached.
- 31% of breaches were in retail, and 93% of compromised records were related to financial services/credit cards.
- Nearly nine out of 10 breaches were considered avoidable if basic security practices had been followed.
Yvonne I Pytlik Journal Of Securities Law, Regulation & Compliance April ...ypytlik
1) The document discusses compliance risk as a critical business risk for asset managers. Compliance violations can seriously damage firms through reputational harm, legal penalties, and even cause the demise of firms like Galleon Management.
2) Regulators are pushing asset managers to strengthen enterprise risk management with compliance as a key component. Firms must take a comprehensive approach to identifying all risks, including emerging compliance risks.
3) Leading practices cited include integrating compliance fully into enterprise risk management for a single view of all risks, strong governance, and effective mitigation strategies to prevent serious compliance breaches like insider trading.
Risk management for law firms chapter 1 ark 2009 by dave cunninghamDavid Cunningham
This document provides an overview of effective risk management for law firms. It discusses that risk management involves balancing risks and opportunities to positively impact a firm's competitive standing. While risk responsibilities were traditionally fragmented, firms are increasingly taking an enterprise-wide view of risk management led by roles like the general counsel. The document outlines key types of risks facing law firms and how risk roles and responsibilities are evolving to take a more proactive, holistic approach to identifying, assessing, and monitoring risks across a firm. It provides guidance on implementing an effective risk management process including communication, context-setting, assessment, treatment, and ongoing monitoring.
The document discusses reputation risk for financial institutions. It provides definitions of reputation and compares it to concepts like image and brand. Reputation is described as being based on a company's past actions and how trustworthy stakeholders perceive the company to be. The value of reputation comes from factors like financial performance, customer service, and governance. Maintaining a good reputation provides benefits like encouraging sales, attracting employees and investors, and gaining favor with regulators. The document notes that reputation risk is the number one concern for chief risk officers.
This document outlines the agenda and key topics for a panel discussion on law firm risk management. The panel will discuss how to define risk, common legal risk types like IT, financial, and practice management risks. They will also cover the business benefits of effective risk management, differences between the UK and US risk environments, evolving risk roles in law firms, and future directions for the field. The discussion aims to provide three next steps firms can take to improve their risk management and will conclude with a question and answer session.
This document discusses how financial services firms are converging their finance, risk, compliance and treasury functions in response to regulatory pressures and market changes. It outlines trends driving this convergence, including increased complexity, competition and regulatory uncertainty. Firms must ensure financial and strategic decisions minimize risk exposure and consider impacts on customers, transactions and investments. The document also examines priorities firms are investing in, such as risk management and compliance, and how better integrating data and perspectives across divisions can help optimize goals around profitability and risk management. Examples of scenarios where converged information strategies could help with regulatory reporting and capital adequacy assessments are also provided.
1) The document discusses various topics related to the financial sector including a Minsky moment, suspension of trading on stock exchanges, granting bank licenses to corporates, financial stability concerns raised by IMF, and risks of sector-specific investing.
2) It explains a Minsky moment as a tipping point when increased risk-taking by lenders meets a price slump, destroying asset values.
3) Suspension of trading is used as an enforcement action by stock exchanges against non-compliant listed companies to prevent further harm to minority shareholders.
4) IMF has warned against granting bank licenses to industrial houses, citing risks to financial stability, and suggested allowing greater private capital and competition in underserved
The document discusses integrated risk management (IRM) in banking. It outlines drivers for IRM including convergence of marketing, risk, and financial data and external regulatory pressures. It describes the desired evolution from siloed risk views to an integrated risk landscape. It also discusses building IRM capabilities in Indian banks through developing people, analytics, data resources, and preparing for sophisticated markets and instruments over time while following regulatory directives.
Yvonne I Pytlik Journal Of Securities Law, Regulation & Compliance April ...ypytlik
April 2010 - Journal of Securities Law, Regulation & Compliance Volume 3 Number 2
Compliance risk: A critical business risk
for asset managers
ABSTRACT
2010 presents a historical moment to define the
path forward to the ‘future of enterprise risk
management and mitigation strategies’ of
increasing compliance risk for asset managers.1–4
The recent financial crises and cases of material
compliance violations, Ponzi schemes, fraudulent
activities, misappropriation of investors’ assets
and collapse of major financial firms have had
significant, harmful impact on investors and
shareholders. Serious compliance violations, such
as insider trading, have proven to be self-destructive
to asset managers. No one is immune to
these trends. ‘Enterprise Risk Management —
2010 and Beyond Forward Looking Approach
by Asset Managers’ is a series of papers dedicated
to regulatory developments and industry best practices in the enterprise risk management
with a focus on ‘compliance risk: a critical business
risk for asset managers’.
Trends shaping the future of legal risk management by dave cunningham and m...David Cunningham
The legal market is conservative when it comes to risk management, and firms often view proactive risk identification and policy setting as more perilous than helpful. However, recent events related to data breaches, regulatory compliance, and client issues are driving increased focus on risk management from general counsels, insurers, and clients. Key trends include greater partnership between general counsels and IT leaders on risk issues; heightened attention to data confidentiality and security; engagement of professional liability insurers in risk discussions; and growing client sophistication in evaluating law firms' risk handling capabilities. Over time, firms may transition more risk responsibilities to centralized teams and formalize previously implicit risk mitigation.
DIFFERENCES BETWEEN ERM PRACTICES BETWEEN THE FINANCIAL AND CORPORATE SECTORS
DIFFÉRENCES DES PRATIQUES ERM ENTRE LES SECTEURS FINANCIERS ET CORPORATIFS
Venture capital provides long-term funding for growing companies in exchange for equity. Venture capitalists seek high-growth companies led by experienced management teams. To attract venture capital, a business plan must demonstrate a large market opportunity, competitive advantage, strong financial projections, and validation. Raising venture capital is a selective process that can take several months and requires understanding the investors' evaluation criteria.
Riskpro India Ventures provides integrated risk management consulting services to mid-large sized companies and financial institutions in India. It has offices in Mumbai, Delhi, and Bangalore, and alliances in other cities. Riskpro's mission is to be the preferred provider of governance, risk, and compliance solutions through services such as fraud risk management, business ethics programs, vendor screening, and forensics. The company differentiates itself from large consulting firms through its focus on risk management, experience, hybrid delivery model, and ability to take on large complex projects.
Today all organizations are subject to fraud risks. Large frauds have led to the downfall of entire organizations, massive investment losses, significant legal costs, incarceration of key individuals, and erosion of confidence in capital markets, Consequently as part of an organization’s governance structure, a fraud risk management program should be in place, including a written policy to convey the expectations of the board of directors and senior management regarding managing fraud risk.
Knowing present corporate focus and need for improved fraud risk governance & management, we’re pleased to launch our Fraud Risk Consulting services in addition to our existing bouquet of Risk advisory, Consulting, Training & Human Capital Services. Our services are offered through our multi location delivery centres in major metros with total presence in 11 Indian cities network.
Riskpro India Ventures provides integrated risk management consulting services including fraud risk management. It has offices in major Indian cities and alliances in other cities, managed by experienced professionals. Riskpro aims to provide quality advisory services typically offered by large firms, at more affordable prices. It focuses solely on risk management and has over 200 years of cumulative experience. The document discusses fraud risk diagnostics and management services including fraud investigation, anti-money laundering support, and a whistleblower hotline.
Riskpro India Ventures provides integrated risk management consulting services including fraud risk management. It has offices in major Indian cities and alliances in other cities, managed by experienced professionals. Riskpro aims to provide quality advisory services typically offered by large firms, at more affordable prices. It focuses solely on risk management and has over 200 years of cumulative experience. The document discusses fraud risk diagnostics and management services including investigation, prevention, ethics programs, and a whistleblower hotline.
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Las Pymes son por mucho el sector económico más vulnerable al fraude corporativo y sus consecuencias; y las más desprotegidas. Inaceptable, considerando que generan cerca del 80% de la fuerza laboral del país.
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1. « FINRA Rewinds 2010 Back | Main | Madoff Trustee Negotiates Historic Settlement » Welcome All... Sponsoring Firm:
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SEC Charges Former Deloitte Partner and Son With
Insider Trading
FOR IMMEDIATE RELEASE
2010-140
Washington, D.C., Aug. 4, 2010 — The
Securities and Exchange Commission today High-Res Photo
charged a former Deloitte and Touche LLP
partner and his son with insider trading in
the securities of several of the firm's audit
clients.
Additional Materials
SEC Complaint Against Thomas Flanagan
and Patrick Flanagan
SEC Administrative Order Against Thomas
Flanagan
Litigation Release No. 21612
The SEC alleges that Thomas P. Flanagan of
Chicago traded in the securities of Deloitte
clients, often while serving as a liaison “Thomas Flanagan
between those companies' management repeatedly betrayed his
teams and Deloitte's audit engagement ethical responsibilities and
teams. In this role, Flanagan had access to his clients' trust by trading
on confidential information
advance earnings results and other nonpublic
to enrich himself and his
information from Deloitte's audit family.”
engagements with Best Buy, Sears, and
Merri Jo Gillette
Walgreens as well as the firm's consulting
Director
engagement with Motorola. Flanagan made SEC Chicago Regional
trades in the securities of these and other Office
companies while in possession of the
confidential information, and also tipped his
son Patrick T. Flanagan who then traded on
the basis of the nonpublic information.
The Flanagans agreed to pay more than $1.1 million to settle the SEC's
charges.
"Flanagan's insider trading violated one of the most fundamental rules of
public accounting," said Robert Khuzami, Director of the SEC's Division of
Enforcement. "All audit firms should learn from this unfortunate episode and
employ vigorous controls designed to ensure compliance with the SEC's
auditor independence rules."
Merri Jo Gillette, Director of the SEC's Chicago Regional Office, said,
"Thomas Flanagan repeatedly betrayed his ethical responsibilities and his
clients' trust by trading on confidential information to enrich himself and his
family."
According to the SEC's complaint, filed in the U.S. District Court in Chicago,
Thomas Flanagan worked at Deloitte for 38 years and rose to the position
4. of Vice Chairman of Clients and Markets. The SEC alleges that Flanagan
committed insider trading on nine occasions between 2005 and 2008 by
trading in the securities of multiple Deloitte clients and a company acquired
by Deloitte client Walgreens. Flanagan was in possession of nonpublic
information about those clients that he learned through his duties as a
Deloitte partner, including such material market-moving events as earnings
results, earnings guidance, and acquisitions. Flanagan's illegal trading
resulted in profits of more than $430,000. On four occasions, Flanagan
relayed the nonpublic information to his son, who traded based on that
information for illegal profits of more than $57,000.
In addition to the court-filed complaint alleging illegal insider trading, the
SEC also instituted administrative proceedings against Thomas Flanagan,
finding that he violated the SEC's auditor independence rules on 71
occasions between 2003 and 2008 by trading in the securities of nine
Deloitte audit clients. Accountants are not independent if they own or
control securities in the clients that they audit. The SEC's settled
administrative order finds that while Thomas Flanagan owned or controlled
client securities, Deloitte issued audit reports to the clients stating that the
financial statements contained in the reports had been audited by an
independent auditor. However, Deloitte was not independent due to
Flanagan's ownership and control of the audit clients' securities. As a result,
the SEC's administrative order finds that Thomas Flanagan caused and
willfully aided and abetted Deloitte's violations of the SEC's auditor
independence rules under Regulation S-X. Flanagan also caused and willfully
aided and abetted the clients' violations of the reporting and proxy
provisions of the Securities Exchange Act of 1934.
According to the SEC's complaint, Thomas Flanagan concealed his trades in
the securities of Deloitte's clients and circumvented Deloitte's independence
controls. He failed to report the prohibited trades to Deloitte, lied to Deloitte
about his compliance with its independence policies, and provided false
information to Deloitte's personal income tax preparers about the identity of
the companies whose securities he traded.
As a result of their conduct, the SEC's complaint charged Thomas and
Patrick Flanagan with violations of Sections 10(b) and 14(e) of the
Exchange Act and Rules 10b-5 and 14e-3. The SEC's administrative action
found that Thomas Flanagan caused and willfully aided and abetted
Deloitte's violations of Rule 2-02(b)(1) of Regulation S-X, and caused and
willfully aided and abetted the clients' violations of Sections 13(a) and 14(a)
of the Exchange Act, and Rules 13a-1, 13a-13, and 14a-3 thereunder.
Without admitting or denying the SEC's allegations in the complaint and the
findings in the administrative order, Thomas Flanagan consented to the
entry of an order of permanent injunction, disgorgement with prejudgment
interest of $557,158, a penalty of $493,884, and a denial of the privilege of
appearing or practicing before the SEC as an accountant. Without admitting
or denying the SEC's allegations in the complaint, Patrick Flanagan
consented to the entry of an order of permanent injunction, disgorgement
with prejudgment interest of $65,614, and a penalty of $57,656.
James O'Keefe, Steven Klawans, and Kathryn Pyszka conducted the SEC's
investigation in this matter. The SEC acknowledges the assistance of FINRA
and the Options Regulatory Surveillance Authority in this investigation.
# # #
For more information about this enforcement action, contact:
Timothy L. Warren
Associate Regional Director, SEC Chicago Regional Office
5. (312) 353-7394
Steven L. Klawans
Assistant Regional Director, SEC Chicago Regional Office
(312) 886-1738
http://www.sec.gov/news/press/2010/2010-140.htm
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