Here at Global Financial Markets Institute (GFMI) we’ve wrapped up the third quarter already and are preparing for the end-run of 2015. Already, our clients are planning budgets for 2016 and, in response, the team at GFMI are preparing our subject matter experts’ calendars for next year’s financial learning requests. In fact, we are seeing a good deal of interest in and requests for our specialized topics about risk… whether that’s operational risk, risk management, interest rate risk, liquidity risk, capital requirements, enterprise risk management, or others.

It’s All About Risk and Risk Management

With today’s markets experiencing and facing even more uncertainty, both here in the US and around the world, risk has become one of the major focal points–as evidenced through the regulations and capital requirements topics which we’ve previously featured in our eNews, articles, blog posts, and new course offerings. We’ve put all of these new developments and resources into place to help you identify, manage, and subsequently mitigate risk in your organizations.

Risk and Risk Management Articles from GFMI

In the spirit of keeping you educated and informed, there are a few articles we’d like to highlight. The first article is Stressed Over Stress Testing. Based upon the great deal of interest we received on an earlier article, Comparing and Contrasting CCAR and DFAST, we asked GFMI subject matter expert Jim Haught to re-visit, build upon, and present a follow-up article explaining in detail why bankers are finding these regulations to be challenging and stressful. As you will see when you read the article, Jim brings a great deal of clarity to a topic that features often conflicting and confusing perspectives and direction.

Our newest article, Understanding Central Counterparties (CCPs), continues the risk and risk management theme. How, you might ask, are CCP’s risk-oriented? From GFMI’s perspective, a key question in today’s markets is whether or not there is too much concentrated risk for the overall financial system resting with these CCPs. For example, once upon a time, agreements were bilateral in the OTC derivatives markets, with Bank A dealing with Bank B. Not so anymore. The CCP removes counterparty credit risk by standing in between the trade of Bank A and Bank B. This article, by GFMI expert Charly Gates, answers several questions about CCPs, including:

  • What are CCPs, and what role do they play?
  • What is a CCP “member”?
  • What risks do CCPs face?
  • How do they manage and mitigate those risks?
  • How does one CCP differ from another?
Risk and Risk Management in 2016

We hope you enjoy reading these featured articles and we welcome your questions about any of the topics. As always, feel free to contact us with your thoughts, opinions, or suggestions for topics that you’d like to see addressed in the future. Let us know as well about your organizations needs for education and ongoing development in risk and risk management. We always enjoy hearing from you and look forward to helping you!