Harvard Business Review

JUNE 28, 2012

An interview with Sallie Krawcheck , former president of Bank of America Global Wealth & Investment Management and author of the article Four Ways to Fix Banks. Download this podcast. A written transcript will be available by July 5.

Banking 13

Banking Download Globalization Article 13

Harvard Business Review

SEPTEMBER 20, 2011

But their shame pales into invisibility compared to the humiliation inflicted on Switzerland's biggest bank. The acknowledged breakdown in systems oversight and risk controls is simply shocking. The board's own processes lacked accountability for evaluating the firm's risk exposures, assessments, and management.

Banking 9

Banking System Risk Management Review 9

Harvard Business Review

OCTOBER 3, 2013

Many other major financial institutions — Bank of America , Citigroup, HSBC, Barclay’s, Wells Fargo, UBS, etc. But, at the end of the day, it is bank leaders and employees who must take the right business, legal and ethical actions under existing law. JP Morgan is the biggest of them all with $2.3 trillion in assets ,$1.1

Banking 8

Banking Management Ethics Letter 8

Harvard Business Review

SEPTEMBER 14, 2012

Paul Tucker, Deputy Governor of the Bank of England, and the person leading the Financial Stability Board's recovery and resolution work programme, believes that banks have "nowhere to hide" in the post-crisis era and must face navigate stress in the future without relying on Government support. Iceland, Ireland).

Banking 8

Banking Crisis Short-term Long-term 8

Harvard Business Review

JUNE 12, 2012

Despite the new regulatory regime, big banks continue to suffer from significant governance challenges. Boards have limited time to wade through the substantial complexity of the banks' businesses. This poses significant risks not just to banks but potentially to the entire economy during the next downturn.

Banking 10

Banking Short-term Long-term Metrics 10

Strategy Driven

NOVEMBER 6, 2015

Strategic Plan includes provisions for refinancing, equity and debt financing. Banking and investing plan is annually updated, with realistic, measurable goals. Finance charges are negotiated. Accounting firm utilization plan is annually updated, with realistic, measurable goals.

Succession 50

Succession Strategic Planning Budgeting Goal 50

Harvard Business Review

MAY 15, 2012

Institutional banking businesses — including trading operations — typically don't have high barriers to entry. financial institution has pulled back or failed, there has almost always been a European bank or a Japanese bank or some other player willing to take over its trading operations or enter the market in its place.

Banking 9

Banking Hedge Constraint Operations 9

Harvard Business Review

AUGUST 9, 2018

Many banks and large corporations employ artificial intelligence to detect and prevent fraud and money laundering. Businesses are constantly experimenting with new ways to use artificial intelligence for better risk management and faster, more responsive fraud detection — and even to predict and prevent crimes.

Banking 8

Banking Strategic Fit Risk Management Real Estate 8

Harvard Business Review

NOVEMBER 23, 2016

These threats change the risk management calculus of firms hoping to succeed in a more turbulent world. Start-ups are particularly at risk today because of both their size and age. Firms applied for credit to finance recovery. Make risk a strategic priority. Data from the U.S. Our data include about 950 businesses.

Insurance 8

Insurance Risk Management Finance Supply Chain 8

Harvard Business Review

JANUARY 10, 2013

This escalation illustrates a significant change: highly expensive scandals across business sectors , not just in single companies, and this is reflected in the January 7th agreement by major banks to pay $8.5 Other banks are considering whether to join the agreement (e.g. billion due to derelict mortgage and foreclosure processes.

Finance 8

Finance Banking Press Release Pharmaceuticals 8

Harvard Business Review

MARCH 22, 2018

My perspective and approach to misconduct risk are influenced by my work as a bank supervisor, and by my background and training as an economist. In my view, bank supervision must include attention to the culture at financial firms, not just to their financial safety and soundness. Adverse selection.

Company 12

Company Banking Incentives Human Capital 12

Harvard Business Review

MAY 15, 2013

The next time we hear about a bank or insurance company''s "green program" — like using energy efficient light bulbs or operating out of a LEED Platinum building — we''ll either scream or throw up. The result is a "heads the bank wins, tails society loses" set of outcomes. Don''t get us wrong.

Banking 8

Banking Licensing Finance Insurance 8

Harvard Business Review

SEPTEMBER 26, 2014

By Focusing on Resilient Risk Management Ebola Battlers Can Learn from Venice's Response to Black Death NPR Every now and then, a story comes along that makes us editors say, "Why didn''t we think of that?" This all comes down to what the article’s authors call resilient risk management. Risk management'

Management 9

Management Risk Management Finance Real Estate 9

Harvard Business Review

OCTOBER 6, 2016

Former employees have alleged a “soul-crushing” culture of fear and daily intimidation by managers, where they were pressured to reach extreme sales goals, some by breaking the law. The bank has since fired 5,300 employees for the illegal behavior and eliminated retail bank sales goals entirely.

Banking 10

Banking Committee Leadership Ethics 10

Harvard Business Review

JANUARY 24, 2013

And unfortunately, they suggest that, in our huge, complex financial institutions, major failures of organizational discipline and major losses are likely to recur, despite greater attention to risk management. million in 2012 — because of his "Whale-related" failures, and that JPM had posted a record 2012 net income of $21.3

Report 8

Report CIO Crisis Committee 8

Harvard Business Review

MARCH 26, 2015

But in the aftermath of the financial crisis, risk managers have become increasingly involved in business strategy and decisions. those without bank accounts), by adopting the more dynamic “customer life cycle” view. The risk function can do the same.

Credit Scoring 8

Credit Scoring Risk Management Finance Marketing 8

Harvard Business Review

OCTOBER 1, 2013

That comes after a nearly $1 billion deal just a few days ago to end civil investigations into several matters including the bank’s multi-billion-dollar “ London Whale ” trading loss. Then there are the two former bank employees that authorities have been trying to arrest ( one successfully ) for their roles in the London Whale events.

Banking 9

Banking Risk Management Constraint Finance 9

Harvard Business Review

MAY 31, 2012

boss, Ina Drew , the former head of their unit in of the bank's, the Chief Investment Office (CIO); and CEO Jamie Dimon, to whom the CIO reported who oversaw the CIO. Drew quickly retired after the losses, and Iksil and Macris are, according to news reports, leaving the bank.

CIO 8

CIO Committee Risk Management Banking 8

Harvard Business Review

DECEMBER 28, 2017

Even before announcing his new cabinet, Mnangagwa installed a key reformist, Patrick Chinamasa, as acting finance minister, tasked with tackling corruption and re-engaging with international institutions to unlock funds to ease liquidity shortages. Mnangagwa’s first actions in office underscore how important he views economic recovery.

Banking 8

Banking First-mover Advantage Politics Finance 8

Harvard Business Review

JUNE 13, 2012

For enterprise risk management, key policies include a statement of risk appetite and explicit risk tolerance levels for critical risks. The company's performance measurement and incentive systems, and the degree to which risk management is considered, will also have a profound impact on employee behavior.

Management 12

Management Banking Committee Risk Management 12

Harvard Business Review

MAY 23, 2012

And it was during Drew's absences, according to a richly detailed account in The New York Times , that the bank's chief investment office, which she ran, began to get into trouble: The morning conference calls Ms. The words "risk management" usually evokes less subjective, more data-driven pursuits.

Management 10

Management Risk Management Competitive Intelligence Hedge 10

Harvard Business Review

OCTOBER 11, 2013

banks can use in their business. According to a 1992 study by the Government Accountability Office, the average leverage ratio for the top 13 investment banks was 27-to-1 during 1991 (up from 18-to-1 in 1990). drop in asset prices would wipe out the equity of the bank. Ethics Finance Risk management'

Incentives 8

Incentives Banking Ethics IPO 8

Harvard Business Review

OCTOBER 10, 2017

Three finance professors once asked more than 400 executives what they would do if their quarterly earnings targets were at risk. In an experiment, we approached the call center of a bank’s consumer loans business. (We’ve Before, tricky problems would be redirected to a risk manager.

Organization 12

Organization Tactics Call Center Metrics 12

Harvard Business Review

JANUARY 9, 2015

I don’t know how far he’s going to go, but I know that we’ve seen major cyberattacks against American banks , and against the White House that have come from Russia. What are we going to do if a major American bank suddenly has all of their dirty laundry exposed and it turns out it came from the Russian government?

Globalization 8

Globalization Banking Politics Crisis 8

Harvard Business Review

MAY 1, 2012

The mispriced investments and derivatives at Enron look similar to mortgage-backed securities at banks or companies with a disproportionate amount of Level 3 fair-value assets (illiquid assets with highly subjective estimated values). Are these deals true risk transfers or are they cosmetic?

Chief Financial Officer 11

Chief Financial Officer Finance Banking Class 11

Harvard Business Review

JUNE 20, 2014

So, for instance, in the course of the financial crisis, it was said that banks play in the casino. If only that would be true — then they could calculate the risks. Risk modeling in the banks grew out of probability theory. What’s the problem with the way that turkey approached risk management?

Uncertainty 10

Uncertainty Kahneman Banking System 10

Harvard Business Review

JULY 31, 2013

This is the new frontier for reputation risk management. Companies (and their representatives) that aren''t using social networks will not be perceived as forward-thinking and, in the long term, will risk losing customers who want business partners who speak their language.

Media 10

Media Reputation Brand Participative 10

Harvard Business Review

FEBRUARY 2, 2012

The disgraced former Royal Bank of Scotland CEO was stripped of his knighthood "for services to banking." Barely four years after Goodwin's elevation, his bank — Great Britain's wealthiest — effectively collapsed and was nationalized.

Incentives 14

Incentives Committee Banking Long-term 14

Harvard Business Review

JUNE 13, 2012

It's easy to assume that Jamie Dimon, the accomplished CEO of JPMorgan Chase, was simply stonewalling when he claimed that mounting trading losses in his bank were "blown out of proportion" — that he was unaware of how grave the situation really was. But I believe that Dimon literally didn't see perceive disaster unfolding before him.

Banking 9

Banking Kahneman Document Simon 9

Harvard Business Review

AUGUST 23, 2012

So why did one of the planet's biggest investment banks — and its 33,300 employees — hold out so long? For highly regulated sectors like finance, social media can be a legal minefield. In the fast-evolving world of enterprise social media, that's a solution even Goldman can bank on.

Compliance 15

Compliance Media Compliance Officer Policies 15

Harvard Business Review

DECEMBER 15, 2017

In one illustration of these difficulties, consider that India currently ranks 100 out of 190 countries in the World Bank’s Ease of Doing Business rankings, 22 places behind China, 39 places behind Indonesia, and just nine places above Papua New Guinea. This data is publicly available on each state’s website.

Strategy 8

Strategy Operations Policies Environment 8

Harvard Business Review

FEBRUARY 27, 2014

In the two biggest settlements, the offending companies — Enron and WorldCom — went belly up, leaving their banks stuck with most of the tab, a somewhat more logical outcome but not the standard one. Economy Finance Risk management' Then there are the lawyers.

Training 8

Training Efficiency Class Price 8

Harvard Business Review

AUGUST 11, 2011

They too are paid by issuers, but it doesn't appear to be as close, conflicted, or lucrative a relationship as that between, say, the structured-finance raters and the big investment banks. The sovereign ratings arms of the agencies — the people who rate the debt of the U.S.

Credit Rating 13

Credit Rating Bond Price Advice 13

Harvard Business Review

FEBRUARY 15, 2016

economy, you’re talking about finance, you’re talking about IT — Apple and Facebook and others. The obvious losers are producers and the banks. We’re getting more efficient at producing at a lower cost because of the market pressures. Also, keep in mind that energy is a relatively small piece of the U.S.

Price 8

Price Energy Constraint Marketing 8

Harvard Business Review

APRIL 10, 2012

Let banks charge much more than 5% interest, and they will lend to "prodigals and projectors," precipitating bubbles and crashes. Adam Smith suggested the invisible hand in an otherwise obscure passage in his Inquiry Into the Nature and Causes of the Wealth of Nations in 1776.

Crisis 18

Crisis Decentralization Marketing Engineering 18

Strategy Driven

DECEMBER 25, 2019

Finance and business executives often joke that the word blockchain placed at the end of the company name is enough to increase the share price of any entity at least twofold. The sanctity and security of data are imperative to every organization, whether it is healthcare services, banks, financial institutions, or government entities.

Technology 13

Technology Supply Chain Document Participative 13

Harvard Business Review

DECEMBER 8, 2016

They’d met at university, and although Derek had gone on to graduate school and a career in banking, while Rogier had joined his family construction business and then founded Contect, they’d never lost touch. It hits our collective reputation and our finances.” The two men went way back.

Case Study 8

Case Study Decentralization CFO Construction 8