Tag Archives: Financial Crisis

Has Internal Audit Measured Up? What Do We Do Next?

The following article was first published in the Global Risk Update published by Risk Reward Limited.

Over the past few years banks have constantly been in the news, unfortunately rarely for the right reasons. A number of different scandals have hurt both the reputation and image of the industry. Foremost amongst these scandals are:

The Financial Crisis—a well documented global disaster
A Foreclosure Crisis—the reaction of banks to mortgage defaulters
Libor Manipulation—affected the most important borrowing/lending rate in the world
Rogue Trading—several episodes where unauthorised trading exposures lead to huge losses
Energy Markets Manipulation—subject of major new investigation by the SEC/CFTC
Money Laundering—a number of major banks have paid very hefty fines
Insider Trading—has involved some major figures on Wall Street and the City
Product Mis-Selling—massive fines for major banks

This does not make good reading for anyone involved in the industry but auditors in particular have real cause for concern. Continue reading

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Banks, Risk, Culture: What Role Does The Culture of Society Play In Banks’ Behaviour?

The role of the wider society in shaping the culture and risk profile of banks and other organisations might be more important than most people think. Understanding that role is extremely important for bank executives and risk professionals if they are to build organisations that are sustainable, economically and competitively, in the long term. Continue reading

The Role of HR: To Out The Megalomaniacs?

Book Review: Clearing the Bull, The Financial Crisis and Why Banks Need a Human Transformation

Book review – A very interesting review and response from an HR professional to the HR issues raised in Clearing The Bull.

The Question That All Bankers Should Be Asking: Why Are We Here?

The following article was originally published in the October edition of The Journal of Business Compliance.

INTRO: Jonathan Ledwidge is an author and risk professional with more than 20 years experience in investment banking and has strong views and undeniably good questions. In this opinion article, the first under the Speakers Corner column of the Journal, he asks questions of everyone in the corporate world, not merely bankers, but industrialists, regulators and all those associated with the formation of governance frameworks, the promotion of meaningful corporate culture and their implementation. He considers the many pitfalls into which a generation of business and political leaders have fallen and the consequences these have had on regulation and internal control practices. The scandals that have come to light within the banking sector have overshadowed scandals of corruption and misselling in other industries that just as crucially require answers and reflections of the existential question: Why are we here?

“Tell me again Maximus, why are we here?” Continue reading

The New Paradigm: Major Central Banks Don’t Fail

Warren Buffet has called the Federal Reserve, the US central bank, “The Greatest Hedge Fund In History”.  That is because the Fed as it is commonly known has persisted in printing money and buying $85 billion in bonds each month in order to artificially support the US and by extension the global financial markets.

This is quite possibly the recipe for another financial disaster. Continue reading

The top five unlearned lessons of the financial crisis

The above entitled article on Reuters was written by Bethany McLean, one of the authors of the book “The Smartest Guys In The Room”, which eventually became an Academy Award nominated documentary about the wiles of Enron.

The article makes for exceptional reading and is a must for those involved with the banking industry and especially those involved in risk, audit, finance and compliance. I highly recommend it to all. Please use the link below to access it.

The top five unlearned lessons of the financial crisis