Following the relocation of its head office from Luxembourg to London last year (see 
Following a month of rumours and speculation (see our initial coverage 
The Committee of European Banking Supervisors (CEBS) has produced a new set of high level risk management guidelines that stress the need for quantitative risk models to be balanced by a “qualitative approach” and for risk management systems to be revamped to take into account enterprise-wide risk exposure. In order to facilitate a qualitative approach, firms need to invest in their data feeds and systems in order to “explicitly” address macroeconomic environment trends and identify their potential impact on exposures and portfolios.
Risk managers need to be able to deal with “both the known unknowns and those unknown unknowns”, according to Jaime Caruana, general manager of the Bank for International Settlements (BIS), who discussed the issue at the Symposium of the Reserve Bank of Australia earlier this month. That’s all very well, but what does that mean in terms of technology? How can firms realistically adapt their risk modelling techniques and risk management systems to cope with anything the market throws at them?
Risk analytics vendor RiskMetrics this week announced its fourth quarter and full year results for 2009, which indicate revenues increased 1.3% on the previous year’s quarterly figures and 2.4% on 2008 full year figures, narrowly beating analysts’ expectations for the periods. Given the vendor is reportedly searching for a suitable buyer (see our coverage 
There is a clear need within the counterparty risk manager community for more tools and better access to data related to credit risk analytics, according to Jonathan Di Giambattista, managing director of risk and performance analytics at Fitch Solutions. Di Giambattista bases his judgement on a recent survey of 85 counterparty risk managers in buy side firms carried out in October last year by the solutions provider owned by ratings giant Fitch.
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.
Rather than pressures related to regulation, the business concerns of the front office are driving a spate of investment into revamping firms’ counterparty risk systems, according to a recent survey conducted by risk solution vendor Algorithmics. The investments are focused largely on credit value adjustment (CVA), which allows for more dynamic pricing of counterparty credit risk into new trades, says Bob Boettcher, senior director of product strategy at Algorithmics.
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