Congratulations to all on the list on your new positions!
For more information about us or about hiring for your Compliance team, please email: contact@theriskpartners.com
#theriskpartners #onthepulse #seniorappointments #Compliance
Author: The Risk Partners
Why do Banks Fail?
Recently, the world has seen a couple of high-profile Banks run out of money and fail.
Everyone has heard the expression that Banks are “too big to fail”, so how does his happen?
1. Poor Risk Management: Banks can fail if they take on too much Risk on their investments / lending, without proper Risk Management controls in place. This can lead to significant losses, such as the ones experienced during the 2008 financial crisis. In this case, risk controls and due diligence in the housing market were not tight enough.
2. Inadequate Capital: Banks need to have sufficient capital to absorb potential losses (a buffer if you like). If they have inadequate capital, they may not be able to absorb losses caused by macroeconomic affects or ‘bad investments’ and may be forced to close.
3. Economic downturns: Economic downturns, such as recessions, can lead to increased loan defaults and decreased demand for banking services, which can result in significant losses for Banks. If customers cant pay back their Loans (Mortgages, Credit Cards, Car Finance etc) or Companies that borrow money go bust, the movement of money stops.
4. Fraud or misconduct: Banks can fail if they engage in fraudulent activities or other misconduct that erodes customer trust and results in significant financial losses. Banks now investment sizable sums of money in divisions such as Anti-Fraud, KYC teams (Know Your Customer) or AML (Anti-Money Laundering) to prevent this from happening.
5. Poor Governance: A subject close to our heart here at The Risk Partners! Banks can fail if they have poor Governance structures in place, such as weak Board oversight, inadequate risk management practices, or inadequate internal controls. If a firm is not policing its own activities, it can be a recipe for disaster.
6. Regulatory issues: Banks can fail if they fail to comply with regulatory requirements, such as capital adequacy and liquidity requirements, or if they engage in illegal or unethical practices. The rules of the game are established and can be viewed by anyone. Fall foul of the FED, PRA or EBA, significant penalties are coming your way!
In summary, Banks can fail for a variety of reasons and the above are just a selection.
Our job is to find your Financial Services business the talent required to stop your firm from falling into difficulties.
The Risk Partners are a boutique specialist recruiter, with Risk Management at its heart of its activities. We live in a world where Governance steers the world through often challenging times. Our aim is to work with clients to ensure that you find the right people for your business. Please get in touch to discuss how we can help you.
Why do firms fail to hire successfully?
On The Pulse: Senior Moves – Compliance: March 23
Some interesting moves within the London Compliance market. Congratulations on your new positions!
#theriskpartners #onthepulse #seniorappointments #Compliance
Compliance News: Further restrictions on Myanmar
EU enforces the sixth round of Sanctions against 9 individuals and 7 entities related to the continuing war in Myanmar/Burma.
Two years have passed since the civil war in Myanmar broke out in which the country has witnessed a distressing escalation of violence, human rights violations, and fears of peace, safety and stability.
The European Union this week continued their restrictions on private companies or entities supplying fuel, arms and funds to the military.
A press release published by the Council of the EU stated: “Other EU restrictive measures will remain in place: the embargo on arms and equipment and export restrictions on equipment for monitoring communications which might be used for internal repression.
“The export ban on dual-use goods for use by the military and border guard police, and the prohibition of military training and cooperation with the Tatmadaw.”
It continues to say: “The restrictive measures come in addition to the withholding of EU financial assistance directly going to the government and the freezing of all EU assistance that may be seen as legitimising the junta.”
The EU will continue their strong stance on outcomes such as “human rights human rights violations, including sexual and gender-based violence, the persecution of civil society, human rights defenders and journalists, attacks on the civilian population, targeting also children and persons belonging to ethnic and religious minorities across the country.”
The restrictions measures will add to the current total of 93 individuals and 18 entities with a designated approach to an asset freeze and travel bans designed to prevent them from entering EU territory.
For further information on the Financial Crime Market and / or Compliance Recruitment, please get in touch:
Taylor Catton – Compliance & Sanctions Specialist Recruiter
The Risk Partners are a boutique Governance specialist recruiter, with Compliance & Risk Management at the heart of its activities. We live in a world where Governance steers the world through often challenging times. Our aim is to work with clients to ensure that you find the right people for your business. Please get in touch to discuss how we can help you.
On The Pulse: Senior Moves – February 2023
Some interesting moves within the London market. Congratulations on your new positions!
Compliance News: Latest Russian Sanctions!
Sanctions across the globe continue to hit different nations, as the fight on Financial Crime aims to safeguard business around the world.
Organisations have this week hit the one-year mark of sanctions following Russia’s invasion of Ukraine on the 24th of February 2022. Last year, the Western world quickly responded to the outcry from the war and put a stop to Russian Banks, High-Net-Worth individuals and entities being able to trade in the US and EU.
In a further effort to stop Russia, the European Union are this week preparing to launch a new round of Economic Sanctions.
As reported by Rikard Jozwiak from the RFERL, “The centerpiece of this sanctions package, seen by RFE/RL, is export bans on EU goods worth 11.3 billion euros ($12 billion), using EU-Russia trade volumes from 2021. A whole list of products, stretching to nearly 70 pages, will be banned from going to Russia.”
He continues: “There is also an import ban on some Russian goods, mostly various types of rubber and asphalt, coming into the EU, to the tune of 1 billion euros.”
The sanctions package will take focus on the Russian military. Individuals and companies will also be hit with sanctions and asset freezes, as the fight on the Ukrainian front continues on for another day.
https://www.rferl.org/a/wider-europe-jozwiak-eu-sanctions-russia-banks-osce/32279022.html
For further information on the Financial Crime Market and / or Compliance Recruitment, please get in touch:
Taylor Catton – Compliance & Sanctions Specialist Recruiter
taylor@theriskpartners.com
The Risk Partners are a boutique Governance specialist recruiter, with Compliance & Risk Management at the heart of its activities. We live in a world where Governance steers the world through often challenging times. Our aim is to work with clients to ensure that you find the right people for your business. Please get in touch to discuss how we can help you.
Why Recruit your next vacancy through The Risk Partners?
Why Recruit your next vacancy through The Risk Partners?
The Risk Partners have a proven track record in delivering the best candidates for our Financial Services clients around the world.
“How do you separate yourselves from your competitors?” I hear you ask.
Here is how . . . . .
- Niche coverage 🕺: be great at a few areas, instead of average in many
- Honesty is policy 🤓: it’s in our DNA and surprisingly rare in the world
- Clear communication 😀: if we have any information, we will pass it on
- Treat people with respect ⭐️: I mean that’s what we say to our kids . . . . practice what you preach
- Do our best ⚡️: many people don’t realise what goes on behind the scenes to fill job vacancies, but we will always do our best to help everyone
- People power 👊: our assets are our staff, our Clients and our Candidates. This is not a numbers game; human beings deserve being treated properly.
Most of the above you would take for granted. But we felt it important to share this as we have heard some recent horror stories in the market!
If you like what you hear, please get in touch: contact@theriskpartners.com
#Values #TheRiskPartners #Hiring #Banking
Which qualifications are right for me?
Within Financial Services there are many qualifications that can help progress your career. Continued learning is important to many employers, but given the many choices out there, which qualifications are right for you?
RISK MANAGEMENT
1) FRM (Financial Risk Manager) – GARP
Course Link: https://www.garp.org/frm
Summary: “Recognized in every major market, the FRM is the leading certification for risk managers. It is consistently in demand by nearly every major bank and firm in the world, and is awarded only to professionals who demonstrate the knowledge and ability to anticipate, respond, and adapt to critical risk issues.”
Suitable for: Everyone in Risk Management
Fees: Part 1 (USD 950 / GBP 700), Part 2 (USD 750 / 550 GBP)
Our thoughts: “FRM is a widely recognised as one of the market leading qualifications and will enhance your CV. We feel this is a good qualification and would recommend.”
2) CQF (Certificate in Quantitative Finance) – Fitch Learning
Course Link: https://www.cqf.com/
Summary: “The Certificate in Quantitative Finance (CQF) is designed to transform your career by equipping you with the specialist quant skills essential to success. That’s why the emphasis is on teaching current, real-world techniques you can apply with confidence from the moment you learn them.”
Suitable for: Quant Risk & Modelling professionals
Fees: Level 1 (USD 10,000 / GBP 7445), Level 2 (USD 10,000 / GBP 7445)
Our thoughts: “CQF is a popular course for those looking to supplement their vocational knowledge within the Quant Analytics space. CQF is the market leader for this space and has had some positive feedback from those who have completed.”
3) Managing Operational Risk in Financial Institutions – CISI
Course Link: https://www.cisi.org/cisiweb2/cisi-website/study-with-us/operations/managing-operational-risk-in-financial-institutions
Summary: “The Certificate will equip you with the knowledge and practical techniques to be able to investigate an operational risk incident, manage operational risk in the long term, model appropriate behaviours to support operational risk management in the workplace, and effectively recommend and contribute to measures to enhance the operational risk culture and operational risk management in the workplace.”
Suitable for: Operational Risk professionals
Fees: (USD 500 / GBP 363) + study support fees
Our thoughts: “This is particularly niche course and forms part of the Investment Operations Certificate (IOC). This course would appeal to mid-senior level Operational Risk professionals”.
4) Risk in Financial Services – CISI
Course Link: https://www.cisi.org/cisiweb2/cisi-website/study-with-us/compliance-risk/risk-in-financial-services
Summary: “Risk in Financial Services offers a comprehensive global introduction to the major risk areas in financial services. It addresses international issues, reflecting the needs of a worldwide market, and provides a sound grounding in the principles of the risk management framework, corporate governance and risk oversight. It covers specific techniques used in identifying, reducing and managing operational risk, credit risk, market risk, investment risk and liquidity risk.”
Suitable for: Everyone in Risk Management
Fees: (USD 470 / GBP 347) + study support fees
Our thoughts: “Junior-mid level individuals looking to advance their knowledge in Risk Management. This could be a good course to contribute to internal training sessions run by your company”.
5) Risk Manager Qualification – PRMIA
Course Link: https://prmia.org/Public/PRM/Public/PRM/2019Home.aspx?hkey=70930e7c-622e-4488-b789-8342795ee6f6
Summary: “The Professional Risk Manager (PRM) Designation is a globally recognized, graduate-level risk management credential. Today’s Risk Professionals are expected to know and understand industry best practices and be committed to using them. There is no better way for risk managers to show their commitment than by proving that they have the knowledge, skills, and qualifications to back their experience.”
Suitable for: Risk Managers of varying levels of experience
Fees: (USD 1430 / GBP 1050)
Our thoughts: “A popular course to rival GARPs FRM. Trusted by some of the industry’s biggest names.”
6) International Certificate in Financial Services Risk Management – Institute of Risk Management
Course Link: https://www.theirm.org/qualifications/international-certificate-in-financial-services-risk-management/
Summary: “An introduction to the principles and concepts of risk and risk management in financial services, it explores how to classify risks in a financial services environment and the approaches that are used to identify, assess and treat them.”
Suitable for: Entry level Risk Management professionals
Fees: (USD 2800 / GBP 2095)
Our thoughts: “A good foundation course in Risk Management. Ideal for those without prior Risk management qualifications”.
COMPLIANCE
1) CAMS Certification – ACAMS
Course Link: https://www.acams.org/en/certifications/cams-certification#overview-e1131add
Summary: “In recent years, Financial Crime has hit the headlines, and the spotlight is firmly on compliance. CAMS is an established global qualification that outlines the key principles of money laundering, and how to prevent it. In as little as three months, individuals and teams can be certified as Anti-Money Laundering Specialists.”
Suitable for: Compliance professionals, in particular Financial Crime Officers
Fees: (USD 1695 / GBP 1250)
Our thoughts: “A big hitter in the Financial Crime Compliance academic world. CAMS is globally recognised and is the minimum expectation in a number of FinCrime jobs”.
2) CISI Diploma in Investment Compliance
Course Link: https://www.cisi.org/cisiweb2/cisi-website/study-with-us/compliance-risk/diploma-in-investment-compliance
Summary: “The Diploma in Investment Compliance is suitable for practitioners who are wishing to pursue a career in compliance and, in particular, those employed at a supervisory level aspiring to a senior management role. It is suitable for those working in both wholesale and retail.”
Suitable for: Those ready to push their Compliance career to the next level
Fees: (USD 660 / GBP 490) + study support fees
Our thoughts: “Great for senior level Compliance individuals looking for development. There is a significant time allocation for the course, so do consider this when applying”.
3) ICA Certificate in Compliance
Course Link: https://www.int-comp.org/programme/?title=ICA-Certificate-in-Compliance
Summary: “A practical, introductory-level course that will give you a solid understanding of core compliance issues. Suitable for anyone who wants to learn more about compliance and the regulatory environment as well as those considering embarking on a new career in compliance as a stepping-stone for study at a higher level.”
Suitable for: Entry level Compliance professionals
Fees: (USD 935 / GBP 690)
Our thoughts: “A great starter course for those commencing their career in Compliance”
OTHER QUALIFICATIONS
1) Chartered Financial Analyst (CFA)
Course Link: https://www.cfainstitute.org/en/programs/cfa
Summary: “The CFA Program, awarded by CFA Institute, is the most respected and recognised investment management credential in the world. A self-study, master’s-level qualification, it provides a strong foundation of advanced investment analysis and real-world portfolio management skills that will give you a career advantage”
Suitable for: Buyside based Risk Managers who want to understand the investment management industry in more detail
Fees: (USD 2550 / 1880 GBP) for all 3 levels
Our thoughts: “This is a popular qualification for Investment Risk, Performance Risk or Portfolio Risk professionals with aspiring careers as a Portfolio Manager. This is not an easy course to study and steps up in difficulty at level 3”.
2) Investment Management Certificate (IMC)
Course Link: https://www.cfauk.org/study/imc#gsc.tab=0
Summary: “The IMC is the benchmark entry-level qualification into the UK investment profession. It delivers the threshold competency knowledge required by investment professionals involved in portfolio management, research analysis, and other front office investment activities. The examinations cover the key content areas appropriate for these roles including economics, accounting, investment practice, regulation, and ethics. The qualification is developed, delivered and awarded by CFA UK.”
Suitable for: Investment Management Risk professionals
Fees: Level 1 (USD 530 / GBP 390), Level 2 (USD 560 / 415 GBP)
Our thoughts: “If you are starting out your career on the buyside this is a great course to look at. Could be a great stepping stone for those not quite ready to complete a full CFA”
The Risk Partners are here to help. Working with us will give you access to a wealth of advice, tips and stories from our Partners. We have trodden the paths before, so do let our experts help you.
Get in touch today: contact@theriskpartners.com
On The Pulse: Senior Moves – October 2022
Its been a busy year all round, we hope you are looking forward to Q4. As part of our commitment to Risk Management, see our latest Senior Moves update.
