July 30 – The Federal Reserve Board has approved a final rule establishing risk-management standards for certain financial market utilities designated as systemically important by the Financial Stability Oversight Council. The final rule also establishes requirements for advance notice of proposed material changes to the rules, procedures or operations of certain designated FMUs. FMUs, such as payment systems, central securities depositories, and central counterparties, provide the infrastructure to clear and settle payments and other financial transactions.
Search Results: Risk-Management
July 20 – The Federal Reserve Board has reaffirmed its long-standing policy of applying relevant international risk-management standards to the Federal Reserve Banks’ Fedwire funds and Fedwire securities services. These services play a critical role in the financial system and in facilitating the safe and efficient settlement of private-sector financial market utilities.
Futures can be a valuable risk-management tool.
By Jon Marcus
In the vast investment markets surrounding the ag business, hedging is a useful tool, when used the right way. By definition a hedge is an investment position intended to offset potential losses that may be incurred by a companion investment. The primary goal of a hedge isn’t to make money, rather to protect from losses and limit risk.
By Don Musso and Stephen Brown Klinger
The article is the second of a four-part article series on strategic planning adapted from FinPro’s 2016 State of the Industry speech titled “The Traditional Community Bank Model is Dead.” The first article, “Focus on Customers, Not Products,” appeared in the October issue of BankNews. The next topic is “Focus on Relationships and Not Transactions,” which is scheduled to be published in February 2017.
October 31 – Fourteen companies, out of 361 applicants, have received the 2016 Risk Maturity Model (RMM) Recognition, a distinction that highlights enterprise risk management leaders and successful ERM programs. Presented by the authors of the RMM, LogicManager and RIMS, the risk management society™, the recipients were announced at the RIMS ERM Conference in Atlanta last week.
September 26 – Sageworks, a financial information company that provides lending, credit risk and portfolio risk solutions to banks and credit unions, today shared a re-cap of its 2016 Risk Management Summit. Held this year on Sept. 14-16 in Austin, Texas, the Summit is the annual, premier conference covering the allowance for loan and lease losses (ALLL) and stress testing for bank and credit union professionals.
Producers who chart strategies, view their effect on average price and make decisions accordingly can break free from emotional decision-making.
By Patrick Patton
Several years ago, we were part of a team that devised a way to simulate commodity price risk-management activities for lenders. The idea was to help them better understand how to use tools available to their farmer clients for managing risk. Lenders would also feel the emotions that often dominate risk management, perhaps leading to more common ground in conversations with farmers about marketing strategy.
Capital, ag experience and value-added services.
By Peter Martin
“Be the change you want to see in the world,” the inspirational leader Mahatma Gandhi once said. We can all take a page from Gandhi’s book when it comes to building stronger business relationships. When I listen to agricultural bankers speak, I hear them say they want stronger relationships with their farm and ranch customers. According to our firm’s research, farmers want the same thing.
August 9 – FDIC has proposed updates to its guidance regarding third-party lending. At least one industry observer is calling the proposals more “hurdles for bank partners of marketplace lenders.” (more…)
By Victor Sandy
In a competitive environment, or in situations where you are simply searching for ways to meet your client’s increasing funding requirements, the goal is to safely put more capital in your client’s hands. As you look for new ways to maximize working capital availability, consider the multipurpose financial tool known as accounts receivable insurance.