In keeping with the recent onslaught of regulatory papers aimed at fostering a more risk aware financial services industry, the Basel Committee on Banking Supervision (BCBS) has published yet another consultative paper this week, this time focused on corporate governance. The paper includes 14 principles aimed at sparking investment by firms into their risk infrastructures and a more responsible attitude to risk management, a key part of which is having access to the right data at the right time.
He may be on his way out the door, but UK Financial Services Authority (FSA) chief exec Hector Sants seems determined to deliver a few parting shots to ensure that financial services firms tackle their risk management failures. In order to boost its success in this endeavour, the regulator will be hiring another 460 staff members and will be looking for those with industry experience of dealing with internal risk management systems within the financial institutions it wants to police.
In order to assist the European financial services community in its attempts to improve liquidity risk management, the Committee of European Banking Supervisors (CEBS) has published a new consultation paper on how to go about producing an effective allocation mechanism for liquidity costs, benefits and risks, CP36. The recommendations are aimed at providing firms with a framework upon which to build internal pricing mechanisms to price liquidity risk and to align liquidity risk management culture across their organisation via suitable incentives, which are likely to include significant data gathering and technology requirements.
Calypso Technology will be focusing on reaching the more traditional end of the buy side spectrum this year, as these firms continue to invest in alternative instruments and seek out a suitable risk management solution provider, explains Dave Wong, senior market specialist at the vendor. Pension funds and the institutional investment community are dabbling more and more in alternatives and they are hard pressed to deal with the risk management challenges and thus need a provider that can cope with the complexity of these instruments, he claims.
Following the appointment of Geoff Harries as the new global head of asset servicing for its Investment Management Solutions (IMS) business earlier this month (see 
The UK Financial Services Authority (FSA) has this week published its Financial Risk Outlook (FRO), which outlines the main risks and issues present in its operating environment, affecting firms, markets and consumers. The document sets out the regulator’s expectations for the industry in the post-crisis environment and directly calls for an investment in risk technology in particular.
A-Team Insight Exchange is a new event series for 2010, which will combine A-Team’s expertise in financial markets IT with thought leadership from world-class technology innovators and practical experience from financial market practitioners.
Last month, the International Organisation of Securities Commissions’ (IOSCO) Technical Committee published the details of the new agreed template for the global collection of hedge fund data in order to better manage systemic risk. These new data requirements are aimed at bringing a new level of transparency to the traditionally opaque sector but will, in effect, mean that these funds will be forced to invest in data systems similar to their more conservative buy side counterparts.
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