TRAINING COURSE “OPERATIONS RISK – ACTIVE MANAGEMENT ACROSS INDUSTRIES”

London, 29 November / 1 December 2010

In the past decade Operations Risk Management has been increasingly pushed into the foreground by the work and the requirements of international standard setting bodies. Through various recommendations as well as specific covenants, operational risk management has become merely a compliance issue facing most corporations.

Implementing an effective Operational Risk Management regimen is a complex process. At its core is an understanding of what Operations Risk is and how it can be best managed. All too often firms have seen the need to effectively manage their operational risks as simply an issue of complying with what the regulators require, rather than a disciplined process that serves to not only ensure a business’s survival but which can, in the long run, contribute to that business’s financial fortune.

In this three day intensive course, we survey the full ambit of Operations Risk Management & Mitigation – from assessment to implementation. During this course we set out a number of key actions which need to be taken by management in the short and medium term to be ready for implementation of a proper risk management program. It is intended to move the participants beyond the local and international compliance requirements for operations risk, and into an understanding of operations risk management and mitigation as a value added proposition, increasing the organization’s profitability and structural strength.

This course is being offered in conjunction with IASeminars.

For detailed course information and registrations please CLICK HERE

Hong Kong's Octopus under fire for selling customer data

Hong Kong transit payment card operator Octopus has admitted selling the personal data of nearly two million customers to its business partners. The Hong Kong press reports that the firm has been paid HK$44 million over the last four and a half years by six companies, including Cigna Worldwide Life Insurance, for data that was used for marketing.

Octopus chief executive Prudence Chan initially denied that data had been sold but she has since backtracked in the face of fierce criticism from Hong Kong's privacy commissioner Roderick Woo, who has launched an investigation.

Octopus has now issued a statement saying it will no longer hand over customer data to merchant partners for marketing purposes. Chan says the company believes its policies are based on Hong Kong's Personal Data Ordinance but acknowledges customers concerns.

"To put their minds at ease, we believe the best way forward is to terminate all activities that involve the provision of customers' personal data to merchant partners for marketing purposes," she says.

Octopus has proved hugely successful since its launch in 1997 but has faced controversy before. In 2007 it admitted wrongly deducting a total of HK$3.7 million from 15,270 customers over seven years because of a fault in its EFT system which resulted in funds being deducted from customers' bank accounts but not credited to their travel passes.

MoneyGram expands its network in Paraguay

MoneyGram International has added three new agents to its network in Paraguay. The new agent partners include Banco Familiar, Cambios Chaco and Multicambios.

Banco Familiar is a leading consumer bank in Paraguay, and has one of the largest banking branch networks in the country. Cambios Chaco, with 20 locations, and Multicambios with 30 branches - the most in the country - are experienced foreign exchange agencies. Banco Familiar and Cambios Chaco were formerly agents of MoneyGram's main competitor and now are offering MoneyGram services.

The new agents will introduce MoneyGram into the cities of Concepcion, Santa Rita and Pedro Juan Caballero. Other MoneyGram agents in Paraguay are Banco Vision, Brios de Finanzas and Maxicambios.

Long-Term Issues in International Banking: New report from the Committee on the Global Financial System

The Committee on the Global Financial System (CGFS) has just released “Long-Term Issues in International Banking”, a report prepared by a Committee on the Global Financial System (CGFS) Study Group chaired by Hans-Helmut Kotz, former Executive Board member of the Deutsche Bundesbank.

International banking has been an important driver of financial globalization and integration, so contributing to welfare gains over time and across countries. During the recent crisis, however, the plight of many internationally active banks epitomized the fragility of the financial system. This underscored the importance of a proper understanding of the drivers and effects of cross-border intermediation.

The report addresses structural issues in international banking from three angles: a historical perspective, what the drivers have been, and what might happen next.

• The development of international banking: the report documents its evolution over the last 30 years in terms of size, form and geographical coverage.

• The factors behind the development: the report provides a critical review of the literature on the various drivers of international banking. A noteworthy conclusion is that the fast growth of internationally active banks, which contributed to the vulnerability of their business model, is difficult to explain on efficiency grounds, at least at an aggregate level. This suggests that institutions' incentives might have been distorted, which warrants further investigation.

• Potential future developments: in addressing this more speculative question, the report pays particular attention to the regulatory reform environment, the pattern of economic growth worldwide and the rapidly evolving interactions between markets and banks.

You can download the full report HERE

Bank of England to take on a greater regulatory role

The Bank of England (BoE) may control a new regulatory committee as part of a number of proposals to change the way in which the financial services industry is supervised. A consultation document from the UK’s Coalition government outlines a strategy to set up a new Financial Policy Committee (FPC) in the autumn of 2010.

The creation of the FPC would provide the BoE with powers of macro prudential regulation. It will be headed up by the BoE’s new deputy governor with Hector Sant, the current chief executive of the Financial Services Authority (FSA), to be the first to take up the position.

Mark Hoban, financial secretary to the Treasury, said: “The Coalition government is delivering on its commitment to reform the financial system, to avoid repeating the mistakes of the recent financial crisis and to ensure that taxpayers are protected. “

He added that the launch of the consultation is a “crucial milestone” in its attempts to reform the industry.

The document also includes plans to create a Consumer Protection and Markets Authority, which would police conduct within the financial markets.

Bernie Madoff trustee to file suits against victims - Newspaper report

Irving Picard, court-appointed trustee for the victims of Bernard Madoff’s Ponzi scheme, is to take legal action against investors who benefited from the fraud, a newspaper report has claimed.

According to the Wall Street Journal, law suits will be filed against approximately 1,000 investors who have been dubbed “net winners” from the scam. Mr Picard told the news provider that the action will be taken against “the people who made money, who got more, have made money at the expense of the people who didn't”.

The trustee is expected to have filed the suits by December while he is also planning on targeting relatives of Mr Madoff and other funds which invested their money in Madoff’s business opportunities.

He recently expanded a law suit against the Fairfield Greenwich Group and a number of its affiliates for enabling Mr Madoff’s scam.

In an additional filing the trustee has demanded up to $3.6 billion in damages from the firm.

The fraud is thought to have amounted to almost $65 billion while Mr Madoff was sentenced to 150 years in jail in June 2009.

IMF launches online database on Financial Access

The IMF recently launched a new online database on financial access, which should start measuring access to and use of financial services systematically. The database measures the reach of financial services by bank branch network, availability of automated teller machines, and by four key financial instruments: deposits, loans, debt securities issued, and insurance. The website contains annual data from about 140 respondents for the six-year period, including data for all G-20 countries. Country surveys offer a wealth of information covering the use of banking services as well as access to banks' physical outlets. Data is downloadable in Excel format.

To visit the IMF site and explore the Financial Access Survey please CLICK HERE