risk management

  • 1626

    MiFID II: Creating a Tighter Operational Process and Control Framework

    Now that MiFID II is in effect, it’s time to examine operational processes and controls to validate compliance. Past regulatory regimes highlight that a failure to implement the appropriate processes and controls at a regulation’s inception leads to higher costs, with some banks spending between $10 million and $25 million. These costs take the form of large regulatory fines or major remediation programs that are required to address undetected issues by the inferior initial process.

  • 1227

    SIMM: tackling the initial margin obligation in OTC derivatives

    Regulatory reforms following the financial crisis have tested banks’ ability to adapt and fundamentally changed business models. The Standard Initial Margin Model (SIMM) is another addition that could reshape many derivatives trading and risk management practices. In this article, Sapient Global Markets’ Thomas Schiebe and Sendi Cigura in partnership with Patrice Touraine and Matthieu Maurice of Global Market Solutions look at what it means for banks and how they must tackle a new wave of data and technology challenges. Following the introduction of mandatory clearing for standardized derivatives, regulators created measures to deal with non-centrally cleared and non-standardized derivatives. This [...]