Business executives, data managers, regulators, technologists, lobbyists, lawyers, accountants, academics, and risk managers will find the plain English text of our research reports refreshingly devoid of jargon — comprehensive and summarized to the points of relevance to you.

Thought Leadership in Risk Management — A compendium of editorials, commentary, and book reviews published in the Journal of Risk Management in Financial Institutions, authored by FIG principals. Topics include the financial crisis and operational risk management, central counterparties, systemic connectedness, the Basel Committee’s fundamental review of the trading book, risk culture, and the relationship between the FSB, BCBS, and systemically important financial institutions. Copyright permission courtesy Henry Stewart Publications.

Independent Audit Assurance on Banks’ Capital Information — This research paper examines the role of independent assurance in post-crisis initiatives aimed at achieving financial stability and how this relates to current and proposed regulatory mandates. We draw comparisons with the US Sarbanes-Oxley (SOX) legislation and similar legislation in other jurisdictions enacted to reduce the risk of material misstatements in financial reporting. We consider whether the role and responsibilities of auditors framed in SOX legislation should be extended more broadly to risk reporting, supporting an expanding role for accountants and auditors in achieving greater financial stability.

Global Data Utility — Evolving the Central Counterparty for Data Management (CCDM) — One of the longest-standing impediments to global straight-through processing in financial services has been the proprietary and non-standard nature of reference data. The CCDM is described as a global facility that assures the completeness, accuracy, security, and accessibility of legal, client, instrument, contract, and transaction identities and their associated reference data. It organizes standard product (Unique Product Identifier — UPI) and legal entity (Legal Entity Identifier — LEI) codes, transaction identification algorithms, and data tags used in regulatory reporting, financial data aggregation, and counterparty settlement.

Gateway to the Barcodes of Finance — A global identification system, similar to commercial barcodes, is being designed around regulatory mandates at the global level through the G20 and at the local level through sovereign market regulators, coordinated through the Financial Stability Board. The system requires each counterparty and financial supply chain participant to obtain a unique Legal Entity Identifier (LEI), with plans to extend unique codes to all financial market participants, instruments (Unique Product Identifier — UPI), and transactions (Unique Transaction Identifier — UTI). The ultimate goal is developing the electronic equivalent of commercial barcodes — the “Barcodes of Finance” — enabling computerized data aggregation for systemic risk analysis and straight-through processing.

Our research papers are listed below:

Allan D. Grody, Rebuilding Financial Industry Infrastructure, Journal of Risk Management in Financial Institutions, Volume 11 / Number 1, Jan 2018

Allan D. Grody, "Risk, Data, and the Barcodes of Finance" Journal of Financial Transformation, No. 45, Pages 136-157, April 2017

Grody AD, Hughes PJ, "Risk Accounting: The Risk Data and Risk Reporting (BCBS 239) Foundation of Enterprise Risk Management (ERM) and Risk Governance", Journal of Risk Management in Financial Institutions, Part 1 - Vol 9/No 2/Spring 2016, pp 130-146 and Part 2 - Vol 9/No 3/Summer 2016, pp 224-248, Feb. 2016

Grody, A.D., Hughes, P.J, The Global Risk Regime - New Roles for Auditors, Dec. 2015

Grody, A.D., Hughes, P.J, Reininger, D., Final Report on Global Identification Standards for Counterparties and Other Financial Market Participants, Journal of Risk Management in Financial Institutions - Special Issue on Counterparty Risk, Vol. 5, No. 2, Mar. 2015

Allan D. Grody, others, Professional Risk Managers International Association, response to Financial Stability Board's Consultative Document "Guidance on Supervisory Interaction with Financial Institutions on Risk Culture", Jan. 2014

K. Fernandes, A. Grody, P. Hughes, S. Toms, Comments on the Basel Committee's Paper "Measuring and Controlling Large Exposures", https://www.bis.org/publ/bcbs246/financialinterg.pdf, June 2013

A.D. Grody, Infrastructure Issues in the Financial Services Industry: A Case for a Central Counterparty for Data Management, Journal of Securities Operations and Custody, Nov. 2009

A.D. Grody, G. Kaple, F. Harmantzis, Operational Risk & Data Management: Costs, Capital Requirements & Risk Mitigation, Presented at the Financial Management Association, European Conference, Stockholm, Sweden, June 2006; Journal of Operational Risk, Vol. 1, No. 3, 2006

A.D. Grody, Solving the reference data problem in financial services, Journal of Operational Risk, Vol. 1 No. 3, Mar. 2006

A.D. Grody, H. Levecq, B.W. Weber, Global Electronic Markets a Preliminary Report of Findings, NYU Working Paper No. IS-95-18, May 1994

A.D. Grody, H. Levecq, Past, Present and Future: The Evolution and Development of Electronic Financial Markets, NYU Working Paper No. IS-95-21, Nov. 1993

Allan Grody, Christopher Keith, Electronic Automation at the New York Stock Exchange, National Academy of Engineering, 1988