by Dr. Jimmie Lenz | Oct 12, 2017 | Sales Practices
Should you be monitoring your sales activities to detect anomalous behaviors? The use of sales incentives (commissions, bonuses, etc.) to motivate the behavior of salespeople has a long history in the United States. We all hope to assume the initial structuring of...
by Philip Lawton | Sep 5, 2017 | Regulations
Calculating expected credit losses under IFRS 9 is easy. It requires little more than high school algebra to determine the aggregate present value of future cash flows. But it is not easy to ascertain the key components that are used by the basic equation—regardless...
by Philip Lawton | Aug 4, 2017 | Regulations
Under IFRS 9, Financial Instruments, banks will have to estimate the present value of expected credit losses in a way that reflects not only past events but also current and prospective economic conditions. Clearly, complying with the 160-page standard will require...
by Philip Lawton | Apr 27, 2017 | Business Analytics
The Federal Reserve and the OCC define model risk as “the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports.”[1] Statistical models are the core of stress testing and credit analysis, but banks are increasingly...
by Philip Lawton | Mar 31, 2017 | Platform
Middle office jobs are fascinating. In performance analysis, spotting dubious returns and tracing them back to questionable inputs requires insight that seems intuitive or innate but results in fact from a keen understanding of markets, asset classes, investment...
by Philip Lawton | Feb 24, 2017 | Business Analytics
Stop and think: how much does your firm — and your work group — depend upon electronic spreadsheets to get mission-critical assignments done? How badly could a spreadsheet error damage your company’s reputation? Its financial results? Your own career? Here’s an...
by Philip Lawton | Feb 2, 2017 | Regulations
The U.S. central bank finalized its rule exempting large and noncomplex banks from the qualitative component of Comprehensive Capital Analysis and Review (CCAR) program. Bank holding companies and U.S. intermediate holding companies of foreign banking organizations...
by Philip Lawton | Dec 21, 2016 | Uncategorized
The Department of Labor’s fiduciary rule became effective in June with an implementation date that is now less than four months away. It is, of course, uncertain that the regulation will stay in place under the new administration. President-elect Trump has named...
by admin | Jul 1, 2015 | General
Stress testing the country’s banks provides a valuable measurement of how well the banks would perform under unfavorable conditions. In order for the tests to give the most accurate picture of potential vulnerabilities, Federal Reserve officials don’t disclose the...
by admin | Jun 19, 2015 | General
The purpose of stress testing is to evaluate a financial organization’s strength under adverse conditions. But as this Forbe’s article explains, it is not simply a matter of passing or failing. Visit the link below at Forbes.com for more about regulatory stress...
