Citi Fined $400M Over Faulty Risk Management Systems

PYMNTS

bank to fix the "significant ongoing deficiencies" in its risk management systems, The Wall Street Journal (WSJ) reported. In a consent order which Citi's board agreed to, the bank was chastised for failing in various areas of risk management and internal controls. According to WSJ, the bank failed at data management, regulatory reporting and capital planning. Regulation Citigroup News regulations risk management What's Hot

A New Reality For Supplier Risk Management

PYMNTS

Supplier risk management is often a resource-intensive practice and rarely a target of technological investments. As a result, corporates will often let their vendor relationship management processes fall by the wayside. For many, that means risk assessments conducted only once a year, a single executive in charge of managing thousands of vendor relationships, and companies that lack visibility into how many suppliers they have. Unprecedented Risk.

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Crowe: Risk Management With RegTech As Strategy

PYMNTS

Marry tech and talent, then risk management can pay dividends, notes an upcoming PYMNTS webinar. Not only is regulatory oversight on the rise, but social media has emerged as a strong watchdog, too, keeping financial institutions (FIs) mindful of unchartered territory, where risks to reputation and revenues abound. At the same time, risk and compliance professionals still are inundated with manual tasks. Taking on more risk?

Walking the Tightrope of Service and Risk Management

SWBC's LenderHub

Risk Management Customer Service & LoyaltyMaintaining auto insurance coverage is what most would consider “old news.” For borrowers and lenders alike, it is a necessary investment that protects all invested parties from experiencing loss.

Coupa Bolsters Controlled Spending, Risk Management Capabilities

PYMNTS

Coupa , which works in business spend management, is rolling out new capabilities to help with businesses’ spend visibility while lowering risk, through a cloud-based platform, according to a press release.

Fusion Pulls Suppliers Into Its Corporate Risk Management Software

PYMNTS

Fusion Risk Management is expanding its corporate risk management software offering by integrating new functionality into the tool, the company said in a press release on Monday (Sept. The updates include connectivity with third parties, allowing its Fusion Framework System users to engage with their suppliers and other third parties in supply chains to streamline the vendor risk assessment process.

AI in banking is all about risk management

Chris Skinner

It is the nature of finance that, at its core, is risk. Insurance is all about covering yourself for the risk of uncertainty. You don’t you’ll have a car accident but, just … The post AI in banking is all about risk management appeared first on Chris Skinner's blog. You don’t know if your house will be robbed but, just in case it is, you insure it.

Profile Software Unveils FX Risk Management Tool

PYMNTS

In an effort to provide complete management of foreign exchange risk, financial solutions provider Profile Software rolled out its Acumen net eFX offering. The technology was created to help bank agents, digital channels, branches and customers handle their foreign exchange risk in an effectual as well as fast manner, according to an announcement. It can fully accommodate rapid business expansion and future needs for competitive Treasury management operations.”.

Esker Adds More Visibility, Risk Management To Supplier Solution

PYMNTS

Esker , which specializes in artificial intelligence (AI)-driven process automation software, has launched a new supplier management solution in its procure-to-pay automation suite, which will help businesses manage and automate their supply chains, according to a press release. The new solution is cloud-based and will offer a 360-degree view of supply chains, helping to minimize risk and reduce the workload of procure-to-pay staff, the release states.

VAR for Enterprise Risk Management

Banker to Banker

Two risk managers were discussing their fear of flying and crashing to their deaths in an airplane. One of the risk managers stated that he had a morbid fear of being on a plane that is blown up by an onboard bomb. The second risk manager asked how he handled this fear, to which the first risk manager replied - “Simple, I bring on board with me a bomb that I have control over, and of course I would never detonate it.” “How does that help?”

Wells Fargo Announces New Risk Management Hires And Strategy

PYMNTS

Kevin Reen and Bill Juliano, who recently worked for J.P.Morgan Chase and Santander Bank respectively, will now serve as Wells Fargo ‘s new corporate risk leaders, in the company’s attempt to have better oversight going forward. Chief Operational Risk Officer at Santander Bank, will serve as the leader of the Operational Risk team for Wells Fargo.

Nuts and Bolts of Risk Management Strategy

Accenture

In my previous post we looked at the importance of crafting the right digitally-enabled risk management approach—a forward-looking strategy that helps encompass the rapid pace of technology change. Managing Risk Featured Risk management bank risk management risk management strategy

Cyber Complications for Vendor Risk Management

Abrigo

Cybersecurity | 4 minute read Key Takeaways Third-party/vendor risk management is becoming increasingly challenging with more cloud-based providers. On top of initial vendor due diligence, there are ongoing, systematic approaches to managing third-party relationships. . In a marketplace where data is shared and distributed at record speeds, third-party or vendor risk management is a challenge for most businesses. Ongoing Vendor Management. Credit Risk.

Fintechs and Risk Management

Strategically Speaking

On the other side of the reward equation is risk inherent with third-party relationships. Fintech Partnership Community Banks Risk/FraudFintech providers play an important role in the financial services industry. Banks and credit unions rely heavily on fintechs to sustain compliant efficient operations, process payments and other data, protect information and deliver service to customers in a variety of ways.

Cyber Complications for Vendor Risk Management

Abrigo

In a marketplace where data is shared and distributed at record speeds, third-party or vendor risk management is a challenge for most businesses. This movement to the cloud requires a robust vendor due diligence process and rigorous ongoing third party management that includes a focus on cybersecurity controls. Ratings should be based on the risk they pose to the business. It is critical that banks stay current with regulatory expectations and potential risks.

Argos Risk, Gatekeeper Partner For Risk Management Services

PYMNTS

Argos Risk , which monitors the financial health of other companies, has entered an agreement with software-as-a-service (SaaS) solution Gatekeeper , according to a press release. Director Patrick O’Connor said in the release that the partnership with Argos will be good because it will allow for new up-to-date risk analysis for Gatekeeper’s existing clients. It generally allows businesses to keep their scorecards clean and do away with unnecessary risk.

Citi using Revlon snafu to fix risk management

American Banker

Citigroup will establish new internal oversight guidelines, spend more on technology and take other steps to upgrade risk systems, CFO Mark Mason said at an industry conference in discussing the aftermath of the bank’s mistaken $900 million payment.

Banking Third Party Risk Management Requirements are a Big and Expensive Ask

Celent Banking

But the slew of banking regulatory requirements for third party risk management is proving to be complex, all-consuming and expensive for both institutions and the third parties involved. In a nutshell, institutions are liable for risk events of their third and extended parties and ecosystems. Unfortunately, there are few institutions that have successfully implemented strategic third party risk management programs.

Combating inconsistency in risk management

Abrigo

When it comes to the risk management process, there is no one-size-fits-all approach. “It is as much an art as a science,” says Tim McPeak, risk management consultant at Sageworks. ” But these inconsistencies pose significant challenges to managing credit risk at financial institutions. • Applying regulatory guidance : Standards are often not applied consistently across the portfolio, e.g. risk rating score.

Quantum computing finds a home in risk management

Insights on Business

But what has this got to do with risk management I hear you ask? It requires calculating sensitivities of the non-cleared trades to a large set of market risk factors on a daily basis. Unfortunately, risk follows the second law of thermodynamics – it either stays the same or increases! AI Banking Cloud Featured Carousel Featured Homepage FinTech IBM RegTech Innovations compliance Moore's Law quantum computing regtech risk risk management

Podcast: A Risk Manager Moves Into the Corner Office

ABA Community Banking

As one of the country's generation of young bank CEOs, and one whose professional background is in risk management and regulatory compliance, Clayton Legear shares his unique outlook in the latest episode of the ABA Banking Journal Podcast. The post Podcast: A Risk Manager Moves Into the Corner Office appeared first on ABA Banking Journal.

A Recipe for Risk Management

Banker to Banker

There is a trendy restaurant in New York City that temporarily changed its menu to serve food composed entirely of garbage. The idea was to highlight the amount of food that is wasted worldwide. Food waste happens for different reasons in different places – in developing countries, difficulty with storage and refrigeration are the problem. In developed countries, aesthetic standards are the primary culprit, and changing this perception was the goal of the experiment

Registration deadline approaching - Risk management summit 2017

Abrigo

The 2017 Risk Management Summit presented by Sageworks is set for September 25-27th in Denver, CO. The Summit is the industry’s leading life-of-loan conference, spanning business development through portfolio risk management in a CECL - current expected credit loss - world. In September 2016, more than 240 bankers and industry experts from both community banks and credit unions attended the Risk Management Summit in Austin, Texas.

Become a captive and be freed- an alternative to traditional risk management

Daily Fintech

Knowing there are risks that are challenging to underwrite or expensive to share with a carrier does not have to limit a firm’s or groups options for risk management, nor does a prospective firm need to engage a top-heavy syndicate where 40% of premium dollars result in expense costs.

Registration deadline approaching - Risk management summit 2017

Abrigo

The 2017 Risk Management Summit presented by Sageworks is set for September 25-27th in Denver, CO. The Summit is the industry’s leading life-of-loan conference, spanning loan origination through portfolio risk management in a CECL - current expected credit loss - world. In September 2016, more than 240 bankers and industry experts from both community banks and credit unions attended the Risk Management Summit in Austin, Texas.

Citi’s chief risk officer to depart as bank begins risk management rebuild

American Banker

The departure of Brad Hu at the end of the year opens the door for Citi’s soon-to-be CEO Jane Fraser to hire someone new to oversee the bank’s massive risk systems overhaul. Corporate governance Risk management Jane Fraser Citigroup

FIs to increase focus on climate risk management

Bobsguide

The pressure is on for financial institutions (FIs) to adopt climate risk models as regulators and shareholders zero in on environmental, social and governance (ESG) factors.

2016 Risk Management Summit wrap-up

Abrigo

Sageworks hosted the 5th Annual Risk Management Summit September 14-16 at the AT&T Executive Education and Conference Center in Austin, Texas. Sageworks Risk Management Summit by the numbers: Attendees : 240 Financial Institutions : 128 For a complete list of lessons learned about CECL and loan portfolio risk management, visit 2016 Summit Takeaways.

Good governance is key to building a model risk management framework

Accenture

In today’s heavily regulated financial climate, banks and financial institutions are relying more heavily on models—to help measure and manage their exposure to risk, and to help manage the overall business. These models are used in every aspect of risk. Managing Risk Featured bank risk management model risk management

Wells Fargo Overhauling Risk Management Processes

PYMNTS

Wells Fargo, weeks after it was hit with a rare enforcement action from the Federal Reserve, is overhauling its risk management processes and announced internally that four top risk management executives would be retiring. According to a report in The Wall Street Journal citing employees and an internal memo that was described to the paper, Wells Fargo also let employees know about the reorganization to better manage risk.

The Rise Of Risk Management In Commerce And Payments

PYMNTS

Cross-border operations can expose companies to an array of risks, including foreign exchange risk. According to Western Union, its newest tool for Hong Kong SMEs provides capabilities for favorable currency movements, reports said, while hedging against risk in the case of unfavorable FX fluctuations. Earnings cambridge global currency fluctuations earnings foreign exchange hedging Netflix News risk management Turkey

A new era of technology enabled financial risk management (Part 1)

Insights on Business

In this series of blogs, we will focus on four transformative technologies with emerging risk applications that can help banks and financial institutions grow profitability and protect the enterprise. Risk brings rewards. Risk management professionals are comfortable with ideas about growth curves and early versus late investment. Explore all these topics in the IBM white paper, “ A new era of technology-enabled financial risk management.”

Risk management in the cloud: A strategic imperative

Insights on Business

Cybersecurity risk is at or near the top of every list of concerns for these institutions. To thwart cybercriminals and meet regulatory requirements while also managing costs, institutions should consider adopting a centrally managed platform and related services to create a consistent and scalable control framework. Three pillars of cyber risk management on the cloud. Implementing an effective, end-to-end cyber risk framework.

Here Is How The Best Banks In Risk Management Talk About Risk

Banker to Banker

RISK MANAGEMENT You can’t be a quality banker unless you have your head straight about risk. For that matter, if you don’t have a clear view and clean language about risk, you really can’t manage risk accurately. Solid risk management starts with having a common and accurate language about risk and the risk you are willing to take.

IBM in “Leaders” Quadrant of 2019 Gartner Magic Quadrant for IT Risk Management, fourth report in a row

Insights on Business

Our goal has always been to provide our customers with the tools and insights that help them meet their governance, risk and compliance (GRC) needs, and we do so, by leveraging the innovation of IBM within a single ecosystem. It’s gratifying to see IBM once again positioned in the Leaders Quadrant of the 2019 Gartner Magic Quadrant for IT Risk Management, released on July 3 rd for its OpenPages with Watson solution.*