Contributor: Paul Bramwell

According to a recent SunGard and Economist Intelligence Unit survey, institutions need a firmer grasp on volatility. For corporations, this fact is heightened by the tumult in the Eurozone. Volatility in global markets, and in particular, the debt crisis in the Eurozone has placed many corporations at greater risk, and in particular, FX risk. “Vulnerability to Volatility Risk – a Global Challenge,” a survey conducted by the Economist Intelligence Unit on behalf of SunGard, concluded that a majority of bankers, insurers and asset managers, as well as finance executives at non-financial companies, consider their organizations to be vulnerable to exceptional or sudden swings in volatility. More than half of the respondents in this survey say their company conducts stress tests or scenario analysis to check their ability to cope with volatility just once a year or once in six months. That means the majority of these organizations are seriously exposed in today’s fast-moving markets. ... read more