CAS-WG - Risk
- Introduction by KS - Welcomed attendees to 1st launch meeting
- Thanks to Crowe Horwath for hosting event
- MP restated key messages from CAS WG February launch meeting
- MP stated that the market faced unprecedented scale of change resulting from legacy regulation and the raft of new legislation as a consequence of the global financial crisis.
- As a consequence of the global financial crisis and some high profile failures risk has taken centre stage from a regulatory point of view
- It should be acknowledged that risk can no longer be addressed within its historical verticals - market, credit, operational, liquidity etc. but are intrinsically linked through the pre-trade and post - trade lifecycles.
- The anticipated changes in the post-trade landscape will have significant impact on how firms manage risk in the future and particularly some key activities such as collateral management and utilisation of capital.
- MP provided overview of proposed governance structure and invited attendees to indicate their interest in leading the subject group
MP opened the floor for questions
- MP asked attendees whether they thought the existence of such a group added value
- The majority agreed there was value and acknowledged that there needed to be a different approach to managing risk in the future
The Risk Subject Group is focused upon:
- Counterparty Risk – default management
- CCP default Risk
- Collateral Risk
- Operational Risk (Société Générale, UBS, JPMorgan)
- Market Risk (Eurozone)
- Enterprise Risk Management versus the silo approach
- Senior management engagement in risk management
The Group has nominated Paul Young, Associate Director for Business Risk Services at Grant Thornton as its Chair