Contributor: Marcus Cree
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
Contributor: Marcus Cree
Right now, there is a noticeable change occurring in the approach to risk management on the buy side, particularly within the pension fund area. Traditionally, pension funds have been measured against a few core metrics... but market changes are challenging the traditional approach.... read more
Contributor: Peter Banham
It is clear that regulatory changes are transforming the OTC derivatives space, from execution to settlement. There are many challenges at play here. As we head into 2012, market participants will need to manage large volumes of data in order to clear and process trades, and we will see new pressures on the cost and the more effective use of capital. In response to this industry transformation, my team and I have identified 10 key trends shaping OTC derivatives today.... read more
Contributor: Dan Travers
There are two ways in which a bank’s counterparty credit risk management can be made more efficient through the use of CVA. First, the allocation of credit risk appetite and second, the management of that credit risk once taken Credit risk appetite has traditionally been allocated by a “top-down” approach, where certain business lines are allowed to enter into deals with certain counterparties up to pre-determined limits. This determines the allocation of credit risk across the bank. Often credit risk appetite is not allocated at all between business units, but it is used up on a first-come-first-served basis until a hard stop. ... read more
Contributor: Dan Travers
Credit Valuation Adjustment (CVA) has become increasingly important in the derivatives trading world since the crisis as a way to price in the cost of counterparty risk. As such, there are an ever increasing number of banks adopting CVA as a core part of their process for managing counterparty credit risk. ... read more
SunGard is one of the world’s leading software and technology services companies. Our four businesses serve approximately 25,000 customers in more than 70 countries.
© SunGard 2002–2013
