Tag: Risk Management

Op risk data: Barclays bungles multi-billion-dollar note issue
Risk

Op risk data: Barclays bungles multi-billion-dollar note issue

Also: Russia sanctions redux; Lloyd’s of London names bullying and sexism brokerage. Data by ORX News In March’s largest loss, Barclays provisioned £450 million ($592.9 million) in expectation of a customer repurchase of overissued exchange-traded notes (ETNs). The bank illegally issued $15.8 billion more ETNs than it had registered for sale, as of August 2019, that for some purchasers had a baked-in right of repurchase in the event of overissuance – meaning Barclays must repurchase their securities at the original price. On March 14, 2022, Barclays said it had suspended further sales from Read more:https://bit.ly/3LVqkGO
Scan This: There’s Danger in QR Codes
Risk

Scan This: There’s Danger in QR Codes

Trendy restaurant tables now feature QR codes that lead to menus, payment apps, and CISO nightmares. QR codes have become embedded in daily life for many adults. Their spread was highlighted on Super Bowl Sunday when a bouncing QR code on a brightly colored field occupied 30 seconds of very expensive air time. Capturing that particular QR code led viewers to information on cryptocurrency. Codes that have popped up on restaurant tables across the country lead to menus and apps for paying meal charges. Other codes could lead to much less benign destinations. The same qualities that make QR codes so valuable make them a legitimate threat to enterprise (and personal) cybersecurity. A type of bar code introduced in 1994 by automotive supplier Denso Wave, QR codes were first used to t...
In roiling markets, fraud rises. Banks want to understand why
Risk

In roiling markets, fraud rises. Banks want to understand why

Chaos and confusion are a breeding grounds for dishonesty, in financial markets as elsewhere. The market volatility sparked by the Covid pandemic and, latterly, by events in Ukraine has raised the alert level for internal fraud within banks and other financial institutions. Managers are now scrambling to reassess their risk controls as sanctions against Russia force firms to dump investments or extricate themselves from business deals. “The minute Russia went into Ukraine and the sanctions Read more:https://bit.ly/3v3zgTV
Battling Cybersecurity Risk: How to Start Somewhere, Right Now
Risk

Battling Cybersecurity Risk: How to Start Somewhere, Right Now

Between a series of recent high-profile cybersecurity incidents and the heightened geopolitical tensions, there's rarely been a more dangerous cybersecurity environment. It's a danger that affects every organization – automated attack campaigns don't discriminate between targets. The situation is driven in large part due to a relentless rise in vulnerabilities, with tens of thousands of brand-new vulnerabilities discovered every year. For tech teams that are probably already under-resourced, guarding against this rising tide of threats is an impossible task. Yet, in the battle against cybercrime, some of the most effective and most sensible mitigations are sometimes neglected. In this article, we'll outline why cybersecurity risks have escalated so dramatically – and which easil...
Apple Gift Card Scammers Sentenced for Role in $1.5M Fraud
Risk

Apple Gift Card Scammers Sentenced for Role in $1.5M Fraud

Two men who engineered a massive gift card scam against Apple have been sentenced to federal prison for a $1.5 million Apple gift card scheme that included the theft of several Apple store point-of-sale systems in order to load credits onto gift cards that they then used to purchase Apple products. Syed Ali, 29, and Jason Tout-Puissant, 27, 2019 each pled guilty to wire fraud. Ali will serve 37 months in federal prison, and Tout-Puissant, 60 months. The men also must pay $1.26 million to Apple in restitution for their crimes. Tout-Puissant told the court that he stole Apple PoS systems from an Apple store in Southlake, Tex., and from outside the building logged into the store's Wi-Fi network to issue gift cards with fake credits. Using Apple's Passbook application, Read more:htt...
Are Boards Getting the Information they Need on Strategy, Culture, and Risks?
Risk

Are Boards Getting the Information they Need on Strategy, Culture, and Risks?

Boards have responsibility for approving the strategy and risk appetite of the company.  This requires directors to have sufficient information to assure themselves that they can make the best decisions possible at the time the decision is needed. Those who follow business literature know that there has been an increase in focus on culture, and how to create a “healthy” environment in which employees feel respected and are engaged in creating value for all stakeholders.  This is not a search for “feel good” environments.  Healthy cultures create greater financial success over the long term.  Conversely, an unhealthy culture, one that is authoritarian, puts the organization at risk.  However, boards have not focused on organizational culture, seeing it as an operational, manage...
NCSC: Time to Rethink Russian Supply Chain Risks
Risk

NCSC: Time to Rethink Russian Supply Chain Risks

One of the UK’s top security agencies has urged the public sector, critical infrastructures (CNI), and other organizations to reconsider the potential risks associated with any “Russian-controlled” parts of their supply chain. Ian Levy, technical director of the National Cyber Security Centre (NCSC), said there’s no evidence to suggest that the Russian state is about to force commercial providers to damage UK interests. However, that doesn’t mean it isn’t happening or won’t at some point in the future, he added. “Russian law already contains legal obligations on companies to assist the Russian Federal Security Service (FSB), and the pressure to do so may increase in a time of war. We also have hacktivists on each side, further complicating matters, so the overall risk has m...
Wrong-way add-on helped LCH mop up VTB default
Risk

Wrong-way add-on helped LCH mop up VTB default

Margin supplement bought precious time to formulate a wind-down strategy A wrong-way risk add-on of roughly 25%, introduced by LCH, helped resolve the default of Russian investment bank VTB’s cleared equity portfolio on March 3, Risk.net can reveal. VTB was unable to post additional margin or deliver cash and stock to settle trades at LCH EquityClear after its assets in the UK and US were frozen by sanctions on February 25. With Russian securities in free-fall, a potentially damaging default seemed to be on the cards. Instead, LCH closed out VTB’s portfolio in less Read more:https://bit.ly/3Dn5sFu
Banks tout CCAR-style stress tests for emergent risks
Risk

Banks tout CCAR-style stress tests for emergent risks

Extreme-but-plausible scenario planning is being applied to geopolitical events such as the Ukraine conflict War in Europe, a global pandemic, ‘one-in-a-million’ weather disasters: the occurrence of events that were once assigned a near-zero probability has prompted bank risk managers to incorporate extreme scenarios into their internal stress tests. Major US banks are already subject to the CCAR capital planning regime, which tests firms against a range of scenarios. Financial institutions also run internal risk management exercises, known as risk and control self-assessment, Read more:https://bit.ly/3tKcxgf
EC looks to force market’s hand in euro clearing battle
Risk

EC looks to force market’s hand in euro clearing battle

Industry exasperated as Commission proposes new mandates and capital penalties for banks clearing in London After five years of trying to relocate euro derivatives clearing from London to the EU, the European Commission has signalled a change of strategy. So far, so predictable: but what has surprised market participants more is that the Commission remains unclear on what this new strategy should be – and it’d like their help deciding. On February 8, the Commission released a consultation detailing a number of potential proposals on how to move the majority of clearing in euro-denominated Read more:https://bit.ly/3JAY23R