All about investment

By: Reed Richards

Managing compliance and risk have become important elements of the modern CIO’s role as they strive to ensure the business can forge ahead while not exposing areas of weakness or potential liability.

Compliance is a form of risk management. In the case of compliance, most of the risk we manage is based in or created by laws and regulations rather than by market forces or customer behavior. However, some of the core elements of compliance risk are shared with many of the same forces that underlie other risk for the bank. Some key sources of risk are staff turnover, a product complexity, rapid growth of the bank or a bank product, economic forces in the bank’s market, and technology. All of these risk sources affect compliance.

Compliance can be a discouraging word for IT managers. Ultimately, it’s about managing risk exposure at a broad level.

Risk management has gained prominence in the last few years owing to regulatory needs like Sarbanes Oxley, Basel II Accord, and pressure to assign capital efficiently and improve business processes. The last decade has witnessed enterprises suffer huge losses, and eventually disruption of business, by not managing risks properly.

Many agencies offers risk management solutions for banks, trading companies, insurance companies and other financial services corporations. Besides custom development, these agencies or organizations also offer solutions from Algorithmic and Cicada Risk and help enterprises meet regulatory needs and manage their risk.

The following risk management framework and application if managed in a proper way lets you to remain on the safer side:

* Market Risk Management
* Credit Risk Management
* Operational Risk Management
* Asset Management
* Asset-Liability Management
* Collateral Risk Management

Managing compliance and risk have become important elements of the modern CIO’s role as they strive to ensure the business can forge ahead while not exposing areas of weakness or potential liability.

Reed has been associated with Advance Cash Australia (http://www.advancecash.com.au/blog/). After completing his Masters in Finance, he is providing his useful advice through his articles on finance for the residents of the Australia.

Article Source: http://www.eArticlesOnline.com