Monday 31 August 2020
What have we learned from the Wirecard debacle?
There’s no doubt that the demise of Wirecard has shaken the payments industry to its core. For many, it was always assumed that the biggest benefit to businesses having access to large global banking networks was the ability for them to intelligently route payments to get the highest conversion rate and drive higher revenue. That assumption was found lacking. Even in 2020, accepting payments is something one can no longer take for granted. Check out the lessons we have learned HERE.
Friday 28 August 2020
Operational Risk and Operational Resilience - BIS releases consultative document
The Basel Committee of the BIS released a new consultative document on the principles for operational risk and operational resilience on 6 August 2020.
The consultative document has a three-part focus;
Recognizing that a concerted operational resilience effort may not prevent a significant shock resulting from a specific hazard, the Committee is looking for comment on proposed Principles for operational resilience that aim to mitigate the impact of potentially severe adverse events by enhancing banks' ability to withstand, adapt to and recover from them.
The Committee is of the view that operational resilience is also an outcome of effective operational risk management. Activities such as risk identification and assessment, risk mitigation (including the implementation of controls), and ongoing monitoring work together to minimize operational disruptions and their effects when they materialize. Given this natural relationship between operational resilience and operational risk, the Committee is proposing updates to its Principles for the sound management of operational risk (PSMOR).
Specifically, the Committee is proposing a limited number of updates to:
By building upon existing guidance and current practices, the Committee is seeking to develop a coherent framework and avoid duplication. The proposed operational resilience principles focus on governance; operational risk management; business continuity planning and testing; mapping interconnections and interdependencies; third-party dependency management; incident management; and resilient cybersecurity and ICT.
Comments to the CDs should be submitted to the BIS (for link Click here ) by Friday 6 November 2020. All comments may be published on the BIS website unless a respondent specifically requests confidential treatment.
The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. The Committee reports to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions. The Committee does not possess any formal supranational authority, and its decisions do not have legal force. Rather, the Committee relies on its members' commitments to achieve its mandate. The Basel Committee is chaired by Pablo Hernández de Cos, Governor of the Bank of Spain. More information about the Basel Committee is available here.
The consultative document has a three-part focus;
- It proposes operational resilience principles that are aimed at increasing the capacity of banks to withstand disruptions due to potentially severe events.
- Proposes updated principles on operational risk focus on change management and information and communication technologies (ICT).
- Acknowledges that Covid-19 has raised the importance of operational resilience and of mitigating operational risk.
Recognizing that a concerted operational resilience effort may not prevent a significant shock resulting from a specific hazard, the Committee is looking for comment on proposed Principles for operational resilience that aim to mitigate the impact of potentially severe adverse events by enhancing banks' ability to withstand, adapt to and recover from them.
The Committee is of the view that operational resilience is also an outcome of effective operational risk management. Activities such as risk identification and assessment, risk mitigation (including the implementation of controls), and ongoing monitoring work together to minimize operational disruptions and their effects when they materialize. Given this natural relationship between operational resilience and operational risk, the Committee is proposing updates to its Principles for the sound management of operational risk (PSMOR).
Specifically, the Committee is proposing a limited number of updates to:
- align the PSMOR with the recently finalised Basel III operational risk framework;
- update the guidance where needed in the areas of change management and ICT, and
- enhance the overall clarity of the principles document.
By building upon existing guidance and current practices, the Committee is seeking to develop a coherent framework and avoid duplication. The proposed operational resilience principles focus on governance; operational risk management; business continuity planning and testing; mapping interconnections and interdependencies; third-party dependency management; incident management; and resilient cybersecurity and ICT.
Comments to the CDs should be submitted to the BIS (for link Click here ) by Friday 6 November 2020. All comments may be published on the BIS website unless a respondent specifically requests confidential treatment.
The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. The Committee reports to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions. The Committee does not possess any formal supranational authority, and its decisions do not have legal force. Rather, the Committee relies on its members' commitments to achieve its mandate. The Basel Committee is chaired by Pablo Hernández de Cos, Governor of the Bank of Spain. More information about the Basel Committee is available here.
Labels:
banks,
BIS,
covid19,
cybersecurity,
pandemic,
risk management
Thursday 13 August 2020
COVID-19 Sparks a Steep Deterioration in Small Business Attitude
Mercator Advisory Group’s new Insight “Summary Report, 2020 Small Business PaymentsInsights, COVID-19 and B2B Payments & Cards - The Result of the Pandemic”, reveals that U.S. small businesses have a much less positive view of the future than in previous years.
Labels:
covid19,
economy,
pandemic,
small business
Sunday 9 August 2020
6 Features Merchants Need from Payment Gateways for Transaction Processing
A new research report from Mercator Advisory Group, “Gateways Become Rising Force in U.S. Payments Industry, Part 1: A Market Overview”, provides analysis and insight on the current state of the U.S. payments gateway market, supported by a Mercator Advisory Group e-commerce sales data forecast.
Labels:
ACH,
banking,
credit cards,
data,
mobile banking,
payments
Saturday 8 August 2020
Wirecard Execs may have hidden $1billion before collapse
In anticipation of its collapse in June, Wirecard AG executives may have raided the German payment company and deposited $1 billion in partner companies while it fought allegations of accounting fraud, the Financial Times reported.
Labels:
accounting fraud,
fraud,
payments,
Wirecard
Tuesday 21 July 2020
FCPA Resource Guide, 2nd Edition
From J D Supra, a look at the recently published 2nd edition of the FCPA Resource Guide
Labels:
bribery,
compliance,
corruption,
FCPA
Friday 17 July 2020
Covid-19: what will happen to the global economy? The Economist answers your questions....
The covid-19 pandemic has caused economic chaos and uncertainty. Zanny Minton Beddoes, editor-in-chief, and Edward Carr, deputy editor of The Economist, answer your questions about the global economy
Labels:
covid19,
economy,
employment,
globalization,
jobs,
recession,
trade finance
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