You are viewing all posts by, Marcus Cree

vice president, risk solutions, SunGard's capital markets business

30
May
2013

Battle of the (Super) Risk Managers: Iron Man vs. Batman

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This blog post was originally published by GARP. This May saw the third installment of Marvel’s Iron Man film franchise. Amid the new movie buzz, it is striking that the super hero world offers a surprisingly unique way to explore different approaches to risk management. By comparing two competing superheroes and their infinite powers, we can ask ourselves, who would make the most effective risk manager – LA resident Tony Stark or Gotham’s own Bruce Wayne? At a glance, the two characters are very similar. They both inherited large corporations and enormous wealth, have an obsessive interest in technology which they utilize to control high end crime and they have a number of stakeholders to address both as civilians and heroes. Despite these similarities, they do have significant differences, particularly in their approaches to risk management. It is these differences that map so well to the different approaches that financial institutions can take to their own internal risk management functions. ... read more

vice president, risk solutions, SunGard's capital markets business

9
Apr
2013

Risk Management: Making Sure the Tail Doesn’t Wag the Dog

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This blog post originally appeared on TabbFORUM. Risk can and should be seen as the core of a financial institution. The management of risk has become an industry in itself, led in turn by regulatory drivers, technological advancement, trading floor developments and quantitative research. In this blur of evolution, it is easy to lose sight of exactly what is required of the risk department, and it is worth taking a step back to refocus on what is important.... read more

vice president, risk solutions, SunGard's capital markets business

18
Mar
2013

Enterprise Risk Management and the Vernal Equinox

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A version of this blog post was originally published by Markets Media. In a time long forgotten, seven days before the third full moon of the year, a drum beats a slow and terrible accompaniment to the death march of the sacrifices to a god whose satisfaction is needed to guarantee a good harvest and the survival of the tribe for another 12 months. As the mid-afternoon sun moves through the sky, the deity himself appears – a winged snake – and makes his way down the steps of the temple built to honor him. At the base of the temple, a carved statue of Kukulkan’s head meets the shadowy shape of his body, bringing together his astral and physical form. At that moment, the human sacrifices are made, and the people pray in terrified silence that it is enough. An eon later, and March 20 sees the 2013 vernal equinox, signifying the end of winter and the astronomical start of spring. This annual event carries with it echoes of legends and rituals from ancient cultures that have direct relevance to our approach to financial risk management today.... read more

vice president, risk solutions, SunGard's capital markets business

27
Feb
2013

Beware the Ides of March: A Warning about Central Clearing from 44 BC

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This blog post was originally published by DerivSource. In March of 44 BC, Gaius Julius Caesar was killed on the steps of the Forum of Rome – before his ambition to centralize power in the Republic, removing the checks and balances of Roman politics, could be fully realized. It is striking that the date for mandatory clearing is set for mid-March 2013, and there are clear parallels to March 15, 44 BC, better known as the Ides of March.... read more

vice president, risk solutions, SunGard's capital markets business

16
Jan
2013

Risk, Baseball and a Brand New Year of Opportunity

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This blog post was originally published on TabbFORUM. It’s 2013. The days are lengthening again, and the risk world is facing an environment that is more concrete, while remaining every bit as challenging as it was before the millennium became a teenager. The challenges faced by risk departments everywhere are well known, and include rafts of new regulations from Basel and Dodd-Frank, and data sets including the recent financial crisis, pointing to very likely high volatility in the months and years ahead, central clearing making calls to the risk management quant teams, and a low inflation/interest rate state continuing to cause anxiety in the pension world. With such a backdrop, it is easy to see risk management as an exercise in compliance at the lowest cost, but as Brad Pitt playing Billy Beane in the baseball movie “Moneyball,” demanded of his staffers: Are we asking the right question?... read more