Risk Management Systems Insights

The cost of fraud to financial services increased by 9.3% over 2017, according to research conducted by LexisNexis Risk Solutions. For every $1 stolen by fraudsters, it costs financial services firms $2.92 in fees compared to $2.67 last year. Further, the level of fraud as a percentage of revenue has moved upwards from 0.95% to 1.53% on average. ... read more

Paper-driven accounts payable (AP) processes are still with us, even though the date on the calendar says we’re approaching the third decade of the 21st century. That’s a problem because having such a central business process clogged up with paper has a negative impact. After all, in a paper world, an invoice can sit in an inbox for... read more

Designing and rolling out any new reporting process in a large organization can be challenging. In any multinational company, a new process will inevitably require input from many people across multiple locations. In addition, the number of departments that need to be coordinated (IT, finance, treasury, etc.) can make collaboration difficult. ... read more

Earlier this month, the former-chief executive of TSB, Paul Pester, stepped down from his role at the organisation following a string of IT failures which caused unquantifiable havoc. While IT failures themselves took centre stage as the focal point for the media – justifiably so; somewhat – it’s important to ask the question: was... read more

Spend even a short amount of time in finance, and you’ll realize stock and bond investment managers are generally cut from different cloths. The former are often chatty, right-brain types, and the latter more analytical and left-brained. Both asset classes can accomplish valuable things inside a portfolio, but that’s pretty much... read more

A market-wide lack of skilled developers could be the reason why hacks such as that which led to consumer reporting agency Equifax being fined by the Information Commissioner’s Office (ICO), according to research by software intelligence firm CAST. “The solution is not to rely on the ability to hire good developers so they write... read more

In the fight against financial crimes, today’s organizations must focus on building compliance programs that are increasingly driven by analytics. While PwC’s Global Economic Crime and Fraud Survey 2018 indicates that 42 percent of companies have increased their spending over the past two years to combat financial crime (an increase of... read more

Between 2009 and end of 2017, regulators in the US and Europe have imposed $342bn of fines on banks for misconduct, including violation of AML rules. Estimates suggest that is likely to top $400bn by 2020. Responsible for monitoring money laundering or theft, and detection of any potential financing of terrorism (CFT), FIs must perform KYC... read more

What’s the main thing that payment facilitators have that ISVs and ISOs don’t? They control the merchant experience in ways that ISOs and ISVs can’t. Why? Risk decisioning lies with the payment facilitator. A great customer onboarding experience can be characterized by speed and ease, but the underlying drivers are how long it... read more

The mantra of the European authorities when talking about the completion of the Banking Union is that there needs to be risk reduction in the banking sector before introducing further mechanisms of risk sharing. What form of risk sharing might this take and what are the risks that banks need to reduce? Risk sharing according to the European... read more