Risk and Regulatory Forum

Lignum Vitae

Lignum Vitae - "Tree of life"

Risk Management

TRENDS IN RISK MANAGEMENT DISCUSSION POTENTIAL NEED FOR PROFESSIONALS AND IMPLICATIONS FOR THE BAHAMAS Presented by Hubert Edwards To the Bahamas Association of Compliance Officers (BACO) On October 28, 2005 At the Hilton Hotel Nassau, Bahamas. The issue of risk and uncertainty has both fascinated and baffled people for many many years. The one absolute consensus that emerges from the debates and by observing reactions to the issue is that uncertainty, risk and risk management means different things to different persons. This difference in opinion is so profound that any two persons within the same organization, addressing the same or similar issues, tend to have different views on risk and risk management. read his speech >

BARINGS – A CASE STUDY IN RISK MANAGEMENT AND INTERNAL CONTROLS Author: Hubert Edwards Date: September 2004 In 1995 Britain’s oldest merchant bank of two hundred years came to a dramatic and fatal halt. The bank was Barings. The demise of the bank was brought about as a result of the actions of a derivative trader, Nick Leeson, stationed in Singapore. Without a careful and considered review one may be tempted to conclude that the blame rests solely at his door step. The analytical mind, may however ask: how is it possible that this one man was able to cripple a financial giant? What was the role of senior management in this situation and did they contribute to the demise? How effective were the internal control systems and was the Singapore operations managed effectively? read article >

CURRENT TRENDS IN RISK MANAGEMENT (A REGULATORY PERSPECTIVE) 3rd Northern Regional Compliance Conference, Freeport Grand Bahama, The Bahamas Author: Hubert Edwards Date:June 30, 2004 In 2003, Jaime Caruana, Governor of the Bank of Spain in a speech to the Risk Summit USA, sponsored by Risk Magazine said the following: “A risk manager and a bank supervisor share similar interests. A risk manager seeks the best risk measures and management techniques to protect a bank against losses, to hone its competitiveness, and to enhance its profitability and long-term growth. Supervisors advocate sound risk management practices to ensure the adequate capitalization and prudent management of all banks. This, in turn, strengthens the financial sector’s resilience during periods of distress” . read his speech >