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Whether it is something serious, like tackling a global issue, or something lighter, like exercising to get into better shape, or travelling, strong communities exist when members have a shared objective or goal that they want to achieve together. In addition, their members share common values. #professionals #community #socialimpact #socializing

𝐏𝐢𝐥𝐥𝐚𝐫 1 𝐯𝐬. 𝐏𝐢𝐥𝐥𝐚𝐫 2: 𝐇𝐨𝐰 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐏𝐥𝐚𝐜𝐞𝐦𝐞𝐧𝐭 𝐃𝐫𝐢𝐯𝐞𝐬 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐢𝐬𝐜𝐢𝐩𝐥𝐢𝐧𝐞 𝐚𝐧𝐝 𝐂𝐃𝐒 𝐑𝐞𝐚𝐜𝐭𝐢𝐨𝐧𝐬 This paper, released by the European Central Bank (ECB) in its 2024 Working Paper Series, explores how capital requirements in Pillar 1 and Pillar 2 affect bank Credit Default Swap (CDS) spreads in the market. By analyzing a quasi-natural experiment where the Swedish financial regulator shifted a risk weight floor for mortgages from Pillar 2 to Pillar 1, the study investigates how this technical regulatory change affects CDS spreads and, thereby, market discipline on bank capital adequacy. The findings highlight that CDS spreads increase when capital requirements are moved to Pillar 1, suggesting greater market sensitivity to adjustments reflected in risk-weighted assets (RWAs) rather than standalone Pillar 2 ratios. 🔍𝐖𝐡𝐲 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐚 𝐆𝐚𝐦𝐞-𝐂𝐡𝐚𝐧𝐠𝐞𝐫 𝐟𝐨𝐫 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐫𝐬 For Risk Managers, understanding the nuances of capital requirement structures is crucial, as regulatory shifts between Pillar 1 and Pillar 2 significantly influence perceived bank solvency and associated risk premiums. This research offers insights into how market discipline responds more acutely to Pillar 1 adjustments, underscoring the need for transparency and strategic capital structuring. 🚀 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐭𝐨 𝐄𝐥𝐞𝐯𝐚𝐭𝐞 𝐘𝐨𝐮𝐫 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡 A. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐢𝐬𝐜𝐢𝐩𝐥𝐢𝐧𝐞 𝐯𝐢𝐚 𝐑𝐖𝐀𝐬 The study shows that markets respond more strongly to capital requirements in Pillar 1 (RWAs), impacting funding costs and default risk perceptions. B. 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐈𝐑𝐑𝐁𝐁 Reflecting Interest Rate Risk in the Banking Book (IRRBB) within RWAs could enhance market discipline, which remains low for Pillar 2 adjustments. C. 𝐄𝐔 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧 𝐂𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲 Findings indicate the importance of uniform capital requirement structures for comparability and effective market discipline across the EU. Many thanks to the author for this in-depth analysis that provides valuable perspectives for both regulators and practitioners on optimizing regulatory frameworks for market resilience. Source: https://lnkd.in/dCu8MC6p 💡 Pro Tip: Join a global community of over 8,000 risk professionals! Our Global Careers Club (GCC) offers exclusive insights on AI, FRM, SCR, and RAI topics along with unique career opportunities. 👉 Join Global Careers Club: https://bit.ly/4dXIc2h (𝘞𝘦 𝘷𝘦𝘳𝘪𝘧𝘺) #riskmanagement #finance #financialrisk #pillar1 #pillar2 #capitaladequacy #marketdiscipline #switzerland #bankingregulation #CDS #IRRBB #financialregulation #creditrisk #bankingsector #capitalrequirements #baselaccord #liquidityrisk #systemicrisk #interestraterisk #GARP #banksolvency #marketvolatility #financialresilience #economicstability #investorsentiment #riskanalysis #financialinstitutions #riskmangementstrategies #riskinn

𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐢𝐧 𝐒𝐨𝐯𝐞𝐫𝐞𝐢𝐠𝐧 𝐂𝐃𝐒: 𝐇𝐨𝐰 𝐂𝐨𝐮𝐧𝐭𝐞𝐫𝐩𝐚𝐫𝐭𝐲 𝐑𝐢𝐬𝐤 𝐃𝐫𝐢𝐯𝐞𝐬 𝐂𝐥𝐞𝐚𝐫𝐢𝐧𝐠 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬 This 2024 study published in Journal of Financial Stability investigates why some sovereign credit default swaps (CDS) are centrally cleared while others remain Over the Counter (OTC), despite eligibility. With a focus on Italy, France, and Germany, this research dives into the post-crisis regulatory landscape, exploring how European and global regulations (e.g., EMIR) influence financial institutions’ clearing decisions. 𝐒𝐨 𝐡𝐨𝐰 𝐢𝐬 𝐭𝐡𝐢𝐬 𝐡𝐞𝐥𝐩𝐟𝐮𝐥 𝐟𝐨𝐫 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐫𝐬? Clearing CDS contracts impacts counterparty credit risk (CCR), capital efficiency, and margin requirements! This study really highlights how strategic clearing decisions can reshape risk management frameworks in sovereign CDS markets. Great insights for optimizing CCR! 💡 𝐂𝐫𝐮𝐜𝐢𝐚𝐥 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐭𝐨 𝐒𝐡𝐚𝐩𝐞 𝐘𝐨𝐮𝐫 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 1. 𝐂𝐨𝐮𝐧𝐭𝐞𝐫𝐩𝐚𝐫𝐭𝐲 𝐑𝐢𝐬𝐤 𝐃𝐫𝐢𝐯𝐞𝐬 𝐂𝐥𝐞𝐚𝐫𝐢𝐧𝐠 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬: Firms are more likely to clear when the counterparty’s credit risk is higher. Central clearing allows financial institutions to transfer the CCR to the Central Counterparty Clearing House (CCP), which is regulated to hold sufficient capital, reducing the risk for non-defaulting counterparties. 2. 𝐑𝐞𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐄𝐧𝐭𝐢𝐭𝐲 𝐑𝐢𝐬𝐤 𝐚𝐧𝐝 𝐌𝐚𝐫𝐠𝐢𝐧 𝐓𝐫𝐚𝐝𝐞-𝐎𝐟𝐟𝐬: Higher CDS spreads (reflecting the riskiness of the reference entity) increase the likelihood of clearing. However, riskier contracts also incur higher CCP margins, making this decision a careful balance between reducing CCR and managing margin costs. 3. 𝐍𝐞𝐭 𝐄𝐱𝐩𝐨𝐬𝐮𝐫𝐞 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Firms with large net positions with the CCP are more likely to clear trades that decrease their outstanding CCP exposure, lowering margin requirements and thus optimizing capital allocation. A big thank you to the authors for illuminating these dynamics within CDS markets! We really enjoyed reading this paper! A big thank you to the authors. This research offers invaluable insights into the incentives that influence clearing decisions 😃 Source: https://lnkd.in/d7skU4qj 𝗘𝗻𝗷𝗼𝘆𝗲𝗱 𝗥𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗶𝘀? Join a vibrant community of 8000+ finance and risk management professionals at Risk Inn 𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗻𝗱 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱 🤝 https://bit.ly/4dXIc2h (𝘞𝘦 𝘝𝘦𝘳𝘪𝘧𝘺) #riskmanagement #cds #creditdefaultswaps #sovereigndebt #financialstability #centralclearing #OTCMarkets #regulatorycompliance #financialrisk #capitalmarkets #postcrisisregulation #riskmitigation #counterpartyrisk #clearingdecisions #financialinstitutions #regulatoryimpact #bankingregulation #frm #scr #rai #systemicrisk #marketinfrastructure #investmentstrategies #clearinghouses #jpmorgan #goldmansachs #pwc #ey #financialmarkets #globalregulations #capitalefficiency #riskinn

🏁 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗿 𝐂𝐚𝐫𝐞𝐞𝐫 𝗣𝗼𝗶𝗻𝘁 🏁 Career opportunity at 𝐆𝐞𝐧𝐩𝐚𝐜𝐭 in 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐢𝐬𝐤 Apply Via Candidate Form: https://lnkd.in/dQDjTmAF 𝐉𝐨𝐛 𝐏𝐨𝐬𝐭𝐞𝐫 : Member of Team with Vacancy 👊🏻 𝐉𝐨𝐛 𝐈𝐃: RiskinnIND051 𝐍𝐞𝐞𝐝 𝐂𝐚𝐫𝐞𝐞𝐫 𝐂𝐨𝐚𝐜𝐡𝐢𝐧𝐠? https://bit.ly/3Bzyd4W Our Exclusive Global Careers Club (GCC) offers a professional space with daily polls, articles on FRM, SCR, and RAI, and unique career opportunities for Risk Professionals! 𝐈𝐬 𝐲𝐨𝐮𝐫 𝐓𝐞𝐚𝐦 𝐇𝐢𝐫𝐢𝐧𝐠? Fill out the 𝐑𝐞𝐜𝐫𝐮𝐢𝐭𝐞𝐫 𝐅𝐨𝐫𝐦 and find your next star teammate with us: https://lnkd.in/dWxnJdrg 👉 Join 𝐆𝐥𝐨𝐛𝐚𝐥 𝐂𝐚𝐫𝐞𝐞𝐫𝐬 𝐂𝐥𝐮𝐛 : WhatsApp: https://bit.ly/4dXIc2h (𝘞𝘦 𝘷𝘦𝘳𝘪𝘧𝘺) 👉 Join 𝐅𝐑𝐌 1&2 Community: WhatsApp: https://bit.ly/3XBXrYX hashtag #career #riskmanagement #riskjobsindia #indianfinancejobs #marketrisk #creditrisk #liquidityrisk #frm #scr #rai #finance #genpact #india #riskinn

Are you currently pursuing Academic Research? Don't limit yourself to the traditional career path. Here’s why As someone who has been there, I know firsthand that the skills you're developing can be applied beyond academia. My experience in research taught me that a research Masters/PhD isn't just about putting in endless hours, it's about learning to work smarter. I honed my skills in research writing and published extensively, but eventually realized my passion lay beyond the confines of academia in the business and tech world. Driven by a growth mindset and a desire to apply my skills in a dynamic, real-world setting, I made the leap from Academic Research to product management in 2020-2021. Now I bring value via a blend of creativity, problem-solving, and efficiency. Key Learning: Your background in research equipped with invaluable skills, from critical thinking to data analysis, can be leveraged to drive tech product growth and innovation - Instead of simply pushing yourself to work harder, you focus on working smarter, finding innovative solutions to challenges and maximizing your impact. Product management is just one example of the myriad opportunities awaiting those with a research background. By embracing efficiency and cultivating a growth mindset, you too can chart a path from research to a career beyond academia. The picture below reminds me of the time when I captained a team of graduate students and professors during my PhD research days at Tulane University, with great team members including Sam Zapp Autumn Skye Murray Kazi Islam Kevin Reece Matthew Escarra Matt Barrios winning a summer sports league. Remember to cherish the journey while pursuing academia. Here's to teamwork and triumph! #phd #graduateschool #careeradvise #productmanagement #science #technology #learning #business #growth #masters #careerswitch

𝐃𝐞𝐥𝐨𝐢𝐭𝐭𝐞'𝐬 𝐀𝐈 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: 𝐄𝐧𝐡𝐚𝐧𝐜𝐢𝐧𝐠 𝐓𝐫𝐮𝐬𝐭 𝐚𝐧𝐝 𝐌𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐑𝐢𝐬𝐤𝐬 𝐢𝐧 𝐀𝐈 𝐒𝐲𝐬𝐭𝐞𝐦𝐬 This 2024 report provides a strategic framework to help organizations mitigate the risks associated with AI adoption. It emphasizes a layered defense approach and integrates governance throughout the AI lifecycle to build trustworthy systems. The report also outlines how businesses can address AI-specific risks like data quality, model biases, and regulatory compliance. ✨ 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐑𝐞𝐩𝐨𝐫𝐭: 1. 𝐓𝐡𝐫𝐞𝐞 𝐋𝐢𝐧𝐞𝐬 𝐨𝐟 𝐃𝐞𝐟𝐞𝐧𝐬𝐞: Organizations should implement the 3LoD model to guarantee accountability at all levels viz. developers, governance teams, and independent auditors. 2. 𝐀𝐈 𝐌𝐨𝐝𝐞𝐥 𝐑𝐢𝐬𝐤 𝐌𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧: Stress testing and ongoing validation are essential to monitor AI model performance and identify vulnerabilities. 3. 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: AI systems must meet ethical, legal, and regulatory standards to ensure transparency, privacy, and bias mitigation. 𝐑𝐞𝐜𝐨𝐦𝐦𝐞𝐧𝐝𝐞𝐝 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐟𝐨𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐫𝐬: Building on the key findings of this report, financial risk managers should adopt a proactive approach to AI governance and model risk management. A. 𝐀𝐈 𝐌𝐨𝐝𝐞𝐥 𝐑𝐢𝐬𝐤 𝐂𝐥𝐚𝐬𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: Classify AI models based on risk, complexity, and materiality, ensuring AI-driven models align with transparency and bias mitigation practices as covered in FRM model risk governance. B. 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐢𝐧𝐠 𝐎𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭: Allocate resources for risk validation, model monitoring, and compliance, highlighting the need for enhanced risk management teams, which is also core FRM competency. C. 𝐃𝐚𝐭𝐚 𝐈𝐧𝐭𝐞𝐠𝐫𝐢𝐭𝐲: High-quality, unbiased data is essential for AI models, similar to the critical role of accurate data in financial risk models discussed in FRM. This was such a great read specially with the rising use of AI in Risk Management! We thank the authors and Deloitte wholeheartedly for publishing this 👊 𝐂𝐮𝐫𝐢𝐨𝐮𝐬 𝐭𝐨 𝐞𝐱𝐩𝐥𝐨𝐫𝐞 𝐦𝐨𝐫𝐞? Read the attached report 🤝 Source: https://shorturl.at/UgIWz 💡 Pro Tip: Join a global community of over 8,000 risk professionals! Our Global Careers Club (GCC) offers exclusive insights on AI, FRM, SCR, and RAI topics along with unique career opportunities. 👉 Join Global Careers Club: https://bit.ly/4dXIc2h (𝘞𝘦 𝘷𝘦𝘳𝘪𝘧𝘺) #ai #frm #riskmanagement #marketrisk #credtirisk #aigovernance #modelrisk #modelvalidation #aigovernance #liquidityrisk #financialrisk #machinelearning #riskstrategy #operationalrisk #frm #scr #rai #governance #stresstest #regulation #riskinn

𝐄𝐱𝐜𝐢𝐭𝐢𝐧𝐠 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐀𝐰𝐚𝐢𝐭 𝐢𝐧 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭!! I’m working with leading Risk Management firms looking to expand their teams across the US, India, Europe, Africa, Australia, and South America. Our clients are seeking mid to senior professionals across credit risk, market risk and operational risk Key roles involve 𝐜𝐫𝐞𝐝𝐢𝐭 𝐫𝐢𝐬𝐤 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬, 𝐫𝐢𝐬𝐤 𝐚𝐧𝐚𝐥𝐲𝐬𝐢𝐬, 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞, 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐢𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭, 𝐚𝐧𝐝 𝐦𝐨𝐝𝐞𝐥 𝐯𝐚𝐥𝐢𝐝𝐚𝐭𝐢𝐨𝐧, 𝐩𝐚𝐫𝐭𝐢𝐜𝐮𝐥𝐚𝐫𝐥𝐲 𝐢𝐧 𝐈𝐅𝐑𝐒 9.  Other positions are available for market risk analytics, including modeling, documentation, and model testing (CCAR, PPNR), regulatory reporting under major frameworks such as EMIR, MIFID, CFTC, SFTR, HKMA, and ASIC, with a strong understanding of OTC derivatives and trade life cycle events. Experience in model validation for financial crime models, fraud detection, and pre/post-trade analytics is also desired.  𝐖𝐡𝐲 𝐬𝐡𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐦𝐚𝐤𝐢𝐧𝐠 𝐚 𝐦𝐨𝐯𝐞? 💼 Our clients are purpose-driven, certified firms that prioritize ethics and truly value their employees. 💪 They have a proven track record of rewarding top performers with swift promotions. 🌍 Their client base includes top-tier global businesses, particularly in investment management and private equity sectors. Interested? 📩 If you fit the profile or know someone who does, feel free to send your updated resume to amey@riskinn.com or reach out to me directly on LinkedIn. You can also simply fill our Candidate Form: https://lnkd.in/dV2-3WTg Need Career Coaching? https://bit.ly/3Bzyd4W #RiskManagement #CreditRisk #MarketRisk #ModelValidation #IFRS9 #FraudAnalytics #CCAR #PPNR #LiquidityRisk #RiskCareers #riskmanagement #creditrisk #marketrisk #operationalrisk #liquidityrisk #modelvalidation #ifrs9 #fraudanalytics #regulatoryreporting #otcderivatives #financialcrime #ccar #ppnr #excel #python #riskanalytics #compliance #processimprovement #stakeholdermanagement #financialservices #riskinn

If you're in the Risk Management domain. You should definitely connect with Amey Tawde and team Risk Inn to learn about the amazing global opportunities 👊

𝐒𝐑 11-7: 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐢𝐧𝐠 𝐌𝐨𝐝𝐞𝐥 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐟𝐨𝐫 𝐒𝐦𝐚𝐫𝐭𝐞𝐫 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬 In April 2011, the Federal Reserve released SR 11-7 Supervisory Guidance on Model Risk Management (MRM), aimed at banks and supervisors. This guidance helps financial institutions reduce risks, enhance governance, and adjust to changing models and market conditions, essential for succeeding in today's regulatory landscape. 𝐖𝐡𝐲 𝐢𝐬 𝐌𝐨𝐝𝐞𝐥 𝐑𝐢𝐬𝐤 𝐒𝐨 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭? Models, defined as any quantitative method or approach used to convert input data into estimates, carry inherent risks. Banks must effectively manage the negative outcomes that arise from flawed or misused models. Model risk can stem from fundamental errors, improper usage, or a lack of understanding of a model’s limitations, increasing with complexity, uncertainty, and potential impact. ✨ 𝐓𝐨𝐩 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐘𝐨𝐮 𝐂𝐚𝐧’𝐭 𝐌𝐢𝐬𝐬 1. 𝐑𝐨𝐛𝐮𝐬𝐭 𝐌𝐨𝐝𝐞𝐥 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭: A well-structured development process includes clear objectives, sound methodologies, thorough testing, and detailed documentation to ensure accuracy and stability. 2. 𝐈𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐞 𝐢𝐧 𝐕𝐚𝐥𝐢𝐝𝐚𝐭𝐢𝐨𝐧: Effective validation requires independence from model development, focusing on conceptual soundness and ongoing monitoring to challenge and assess the model's effectiveness. 3. 𝐒𝐭𝐫𝐨𝐧𝐠 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤: Effective governance entails clear policies and procedures, with oversight from the board of directors and senior management, aligning with supervisory expectations outlined in SR 11-7. 💻 𝐎𝐧𝐠𝐨𝐢𝐧𝐠 𝐌𝐨𝐧𝐢𝐭𝐨𝐫𝐢𝐧𝐠: Continuous monitoring is crucial for effective model risk management. As models evolve, banks must adapt their governance and validation practices to ensure alignment with changing risks and regulatory expectations. Source: https://rb.gy/vk3xcb 💡 𝐏𝐫𝐨 𝐓𝐢𝐩: Join the discussion in a community of 8,000+ risk management experts. Our Exclusive Global Careers Club (GCC) offers a professional space with daily polls, articles on FRM, SCR, and RAI, and unique career opportunities for Risk Professionals! 👉 Join 𝐆𝐥𝐨𝐛𝐚𝐥 𝐂𝐚𝐫𝐞𝐞𝐫𝐬 𝐂𝐥𝐮𝐛 : WhatsApp: https://bit.ly/4dXIc2h (𝘞𝘦 𝘷𝘦𝘳𝘪𝘧𝘺) #fraudprevention #cybersecurity #financialsecurity #finance #frm #scr #rai #fintech #bankinginnovation #securepayments #paymentfraud #riskmanagement #modelrisk #frm #audit #governance #validation #financialrisk #modeldevelopment #federalreserve #mrm #riskinn

Mastering the Unseen Forces of Business Continuity, and why organizations are turning to Risk Management Pros ⛳ In the dynamic and fast-paced world of business, Operational Risk Management (ORM) often takes a backseat to more glamorous financial risks. However, it’s the foundation upon which successful organizations build their resilience. So read on to learn why Operational Risk Management is crucial for any organization 🔒 Operational risks stem from internal processes, people, systems, or external events. These risks are omnipresent, whether it’s a data breach, process failure, or a natural disaster. Effective ORM ensures that an organization can navigate these challenges without compromising its objectives. By focusing on the operational aspects of risk, companies can maintain continuity, protect their assets, and enhance stakeholder confidence. 🌏 Some Global Examples of ORM in Action (A) British Airways (IT Failure Management) ✈ In 2017, British Airways faced a significant operational crisis when an IT failure led to the cancellation of hundreds of flights, affecting over 75,000 passengers. While the incident caused substantial disruptions, British Airways' response highlighted the importance of having robust ORM processes. They quickly implemented recovery strategies to restore operations and mitigate reputational damage. Ref: https://shorturl.at/Z1lbg (B) Toyota (Process Risk Management) 🚘 Toyota, a leader in manufacturing excellence, has long focused on mitigating operational risks through their Just-In-Time (JIT) production system. By maintaining lean inventory levels and optimizing production processes, Toyota minimizes the risk of overproduction and ensures swift responses to market demands, reducing waste and increasing efficiency. Ref: https://shorturl.at/gPceE (C) Target (Third-Party Risk Management) 🎯 Target’s 2013 data breach, resulting from vulnerabilities in a third-party vendor, underscored the critical need for comprehensive third-party risk management. Since then, Target has bolstered its ORM practices, including stricter vendor assessments and enhanced cybersecurity measures Ref: https://shorturl.at/AMIMH Note: For those in the risk management field, the Financial Risk Manager (FRM) certification provides the knowledge needed to address operational risks effectively. The FRM curriculum delves into operational risk management, offering tools and techniques that are essential for identifying, assessing, and mitigating operational risks in any organization. With an FRM certification, you’re equipped to lead in environments where operational resilience is key to success. Thinking about FRM certification? Join a community of 5000+ Certified professionals and Aspirants: https://lnkd.in/dutgubKW #OperationalRisk #RiskManagement #FRM #BusinessContinuity #CorporateGovernance #Resilience #Finance #RiskMitigation