Research Papers
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.
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Thought Leadership in Risk Management
A compendium of JRMFI published editorials, commentary and book reviews authored by FIG principals. Copyright permission courtesy Henry Stewart Publications. The JRMFI is a quarterly professional journal aimed at senior risk management professionals within the banking sector. Contents span 2008-2015, covering editorials on the financial crisis, operational risk management, central counterparties, systemic connectedness, the Basel Committee trading book review, and risk culture.
Independent Audit Assurance on Banks’ Capital Information
In this research note, we examine 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 consider whether the role and responsibilities of auditors should be extended more broadly to risk reporting. We support an expanding role for accountants and auditors to adapt financial metrics and reporting to achieve more comprehensive and precise disclosure of accepted risks in audited financial statements. 12 pages.
Global Data Utility – Evolving the Central Counterparty for Data Management (CCDM)
The CCDM is described in this research note as a global facility administered by a global standards setting body that assures the completeness, accuracy, security and accessibility of legal, client, instrument, contract and transaction identities and their associated reference data. It organizes and maintains standard product (UPI) and legal entity (LEI) codes, transaction identification algorithms, and data tags used in reporting financial transactions to regulators, aggregating financial transactions, and assuring settlement amongst counterparties. 17 pages, 8 figures.
Gateway to the Barcodes of Finance
A global identification system, similar to commercial barcodes, is being designed around regulatory mandates through the G20 and sovereign market regulators, coordinated through the Financial Stability Board. This research note traces the system from its inauguration with the Legal Entity Identifier (LEI) through the planned extension to all financial market participants, including the Unique Product Identifier (UPI) and Unique Transaction Identifier (UTI). The ultimate goal: the electronic equivalent of commercial barcodes for global systemic risk analysis and straight-through-processing. 29 pages, 10 figures.