Business Insurance:: ISO 31000 should we believe the hype?


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Apparently,

“…risk managers should use standards such as ISO 31000, “because standards, no matter what kind or which ones, support key tools and processes.”“Standards allow you to proactively address risks with some discipline,” he said. “Standards also relate well to the whole idea of focusing on outcomes.”

http://www.businessinsurance.com/article/20130602/NEWS06/306029979?template=smartphoneart

Surely the focus should be upon being proactive and ‘managing’ emergent risks, NOT outcomes!?

Where, I suspect, NASA have a distinct (informational) advantage is that the multi-scalar interactions among components, processes, networks of sub-systems and systems are each rigorously tested at every point in assembly and operation…

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Domestic terrorists don’t wear pinstripes


Is it just me that is absolutely gobsmacked by this!?

Further evidence, of the lack of consistency and glaring inequalities. OK, we know that Regulators and Legislators see fit to ignore the scale of the crimes perpetrated by these banksters BUT for how much longer can any right-minded citizen stand idly by?

More (costly) regulation won’t change this culture but, CONSTRUCTIVE TRANSPARENCY can. And, in the process, reduce the risks associated with such behaviours.

Political and Financial leaders know that they are playing a very high stakes game and that there is a growing threat that ALL that they hold dear will, as a result of both their actions and inaction, come under threat. Would this go some way to explain the rate at which civil liberties are being stripped away across the Western world? I sincerely hope that such questions or suggestions don’t qualify me as a “domestic terrorist” because, as a mere citizen, anything could happen…

JPMorgan Chase has been sanctioned by US regulators for failures in its risk management operations after it lost more than $6.2 billion on a single credit derivatives trade. The sanctions follow the disclosure of significant losses in a large synthetic credit portfolio that was managed by the CIO. The botched bet – made by UK big fish Bruno Iksil – had managed to wipe out $51 billion in shareholder value before alarm bells started to ring at the bank’s head office in New York. Among other things, the Fed identified deficiencies in risk management oversight, modelling assumptions, audit and finance reporting and escalation to senior management. The OCC further found that the bank’s BSA (bank Secrecy Act) compliance programme had “critical deficiencies” with respect to suspicious activity reporting, monitoring transactions, conducting customer due diligence and risk assessment, and implementing adequate systems of internal controls and independent testing. Despite the criticism, JPMorgan Chase escaped with nothing more than a rap on the knuckles. No fines were levied by the watchdogs and the bank didn’t admit or deny wrongdoing in consenting to the regulatory orders

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Floods:: will the insurance industry redeem or condemn itself?


When it comes to preparing for, coping with or recovering from, flooding it is highly recommended that property owners AND insurers listen to experts, such as our very own, Jeff Charlton …rather than to organisations peopled by …

individuals whose self-interest consistently supersedes the interests of their colleagues – clients – congregations – students – customers – members – citizens and IS the biggest threat to their own interests as well as our shared future!

Do so and, whether insurer or insured, you may be well on your way to coping with or avoiding nasty issues that impact both wealth and health.

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Seeing beyond flags of convenience for a virtuous ‘circle of life’


Don’t think ill of me because this (lengthy) extract is taken from an article I wrote earlier in the year [Don’t (just) believe your eyes:: heuristics + complexity = guesswork]. When I re-read it, I reckoned stood up pretty well on its own.

Also, I felt it tied in well with more frequent (and louder) calls for greater transparency and an increased awareness of the “lessons from nature” – that resilience comes from within – that are, so often, overlooked.

I hope you agree.

Too often, in the absence of information that we can understand and trust, we make assumptions based upon what we are TOLD and the outer appearance i.e. what WE see.

Our senses form part of our very own in-built risk management system! But we don’t KNOW as much as we would like to think. That is why we defer to others… 

What do we do when it comes to really big decisions…when we don’t have the opportunity/tools/expertise to establish the FACTS for ourselves? Read more of this post

UK-based banks accused of massive mis-selling in Italy


You couldn’t make it up!

Several UK-based investment banks have been accused of mis-selling financial products to Italian cities and regions.

Nomura, UBS and Deutsche Bank are among those accused by Italian prosecutors of mis-selling derivatives in deals worth 35bn euros (£28bn).

The banks deny wrongdoing, but refused to comment further because the matter is now before the Italian courts.

BBC Newsnight discovered that London’s financial watchdog was made aware of the mis-selling, but failed to act.

Now those Swap derivatives look as if they could further damage the entire Italian economy – the third largest in the eurozone.

via BBC News – UK-based banks accused of massive mis-selling in Italy.

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