This is second in a series of blogs on Data Science that I am jointly authoring with MaleehaQazi, ( We have previously covered some of the inefficiencies that result from a siloed data science process @ All of the actors in the data science space can agree that becoming responsive to business demands is … Continue reading “Data Science in the Cloud A.k.a. Models as a Service (MaaS)..”

A Framework for Model Risk Management
A Framework for Model Risk Management 0 Comments | By

“There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don’t know. But there are also unknown unknowns. There are things we don’t know we don’t know.” – Donald Rumsfeld, 2002, Fmr US Secy of Defense With machine … Continue reading “A Framework for Model Risk Management”

In October 2014, the Basel Committee published for consultation a revised Standardised Approach for operational risk that sought to address weaknesses in the then existing approaches. The Committee also embarked on a review of the costs and benefits of the framework’s Advanced Measurement Approaches (AMA) for operational risk. What followed was much of a muchness … Continue reading “Operational Risk Capital”

RCSA - Mirror, Mirror, on the Wall 0 Comments | By

Mirror, Mirror, on the Wall A key element of any toolkit in Enterprise/Operational Risk is Risk Control Self-Assessment, or RCSA. And it happens to be the highly suboptimal, much misunderstood, most bureaucratic, and least productive one of them all, in its setup, execution and results. At its core, RCSA is about looking in the mirror … Continue reading “RCSA”

KYX : much of a muchness for what should not be very much (1) Regulations and Regulators: Many Regulators play in the AML & KYC and the OFAC & FATCA arena. The Bank Secrecy Act or BSA(formally The Currency and Foreign Transactions Reporting Act of 1970) was originally assumed to apply only to Banks.BSA exclusion … Continue reading “KYX”

Over these last few years I have watched with growing bemusement, as a highly lucrative industry has been built around Governance, Risk, and Compliance (GRC), by many purveyors of press-here-and-push-there technologies. What is offered to a naïve and hungry audience is instant gratification with respect to risk & compliance frameworks and everything else you might … Continue reading “GRC”

Good People Behaving Badly
Good People Behaving Badly 0 Comments | By

I have firmly held, for as long back over my 35-year career that I can recall, that the biggest challenges, issues and events in Risk Management come down to People; fear, greed, and ego drive the behavior of traders, transactors, and managers often precisely in those situations where economic rationality and discipline are desired or … Continue reading “Good People Behaving Badly”

The most interesting, and oft-repeated, question I hear is what should FinTech do insofar as Risk Management (synonymously or additionally used with Compliance). Let me take this in two parts, starting with a broadbrush why and how of a FinTech-absorbed world. Not putting too intellectual a spin on it, it is of course technology –as … Continue reading “FinTech Risk Management”

Why Banks, Payment Providers and Insurers Should Digitize Their Risk Management.. – Vamsi Chemitiganti Introduction “When models turn on, brains turn off.” – Dr. Til Schuermann, Formerly Research Officer in the Banking Studies function at the Federal Reserve Bank of New York.Currently Partner at Oliver Wyman & Company. There exist two primary reasons for Enterprises … Continue reading “Digitize Risk Management”

Risk management is not just a defensive business imperative but the best managed banks deploy their capital to obtain the best possible business outcomes. The last few posts have more than set the stage from a business and regulatory perspective. This one will take a bit of a deep dive into the technology. Existing data … Continue reading “Big Data architectural approaches”