The Basle Accord: rethinking credit riskPeter Vipond
2000 Balance Sheet
doi: 10.1108/09657960010338535
Discusses the 1988 Basle Accord and the effect it had on banks internationally plus the more recent amendments dealing with various matters and the 1999 proposals that promise change. Posits that the 1999 proposals envisage three pillars with definite aims, these are examined in depth. Concludes that the Basle approach has real merits with credit being pushed to the limit by firms’ involvement in this system.
Is securitisation still a useful balance sheet tool?David Barnes; Neil Warman
2000 Balance Sheet
doi: 10.1108/09657960010338544
Examines the securitization market and explores the factors which fuel grounds for growth in this market and whether, in light of proposed BIS changes, it will continue to expand. Discusses possible pitfalls and itemizes these with further explanations. Looks at the situation in three countries in particular – Italy, Germany and France, giving useful breakdowns on each. Concludes that banks will have an even greater incentive to remove high‐credit risk corporates from balance sheets owing to capital required.
Once in a millennium: preparing for Y2KJohn DeLuca
2000 Balance Sheet
doi: 10.1108/09657960010338553
Looks at the problems and fears surrounding banks and financial institutions with regard to the Y2K computer systems date programs. Discusses the possible scenarios for the midnight of 31 December 1999 and that even with all the planning involved, no‐one was sure of the outcomes and the implications were many. States only that no two banks will experience the same effects. Further states that all over the world the arrangements varied from the well prepared to the slaphappy. Closes in saying that all financial institutions will be very pleased if 2000 brings an uneventful start for themselves and their customers.
There’s a new set of definitions in townSanjeev Gupta
2000 Balance Sheet
doi: 10.1108/EUM0000000005369
Chronicles the International Swaps and Dealers Association’s (ISDA’s) compliance with the new credit derivative definitions. Adumbrates that the objectives are: to promote more transparency and liquidity in the market; provide objective assessment; and offers a range of choice for three things which are highlighted and discussed. Examines the definitions in depth giving lucid explanations. Concludes that the credit derivatives market has a strong base for future growth.
Managing risk and making moneyTim J. Leech
2000 Balance Sheet
doi: 10.1108/09657960010338571
Wonders why assurance has, in its existing form, failed in certain areas in the world. Uses comprehensive figures with an in depth explanation of what has gone wrong in assurance. States the direct approach has failed and, in so doing, has brought about the collapse of entire organisations. Gives recommendations to improve this situation and adds emphasis, with the use of itemized points to the Turnbull report.
Liquidity and the marketsRoss Jones
2000 Balance Sheet
doi: 10.1108/09657960010338580
Discusses a talk given by Ross Jones at the UK Asset and Liability Management Association about the effect globalization is having on the increased lack of financial controls. Looks at the history of liquidation and how it was achieved. Further investigates IT and the markets and how they have changed under technology’s influence – but that it should be used properly to add value. Wonders whether in the future there will be only one settlement and clearing system for the whole world!
Outsourcing or increasing risks?Chris Frost
2000 Balance Sheet
doi: 10.1108/09657960010338599
Examines outsourcing various functions such as internal audit and suggest caution should be the watchword. Proposes that certain businesses can be improved by outsourcing, in that they may support the overall business. Warns that outsourcing’s objective should be to free up management and instil confidence in it. Looks at the evolution of outsourcing and how it has reached today’s popular climate. Concludes that the impact on risk may, unless managed properly, be much higher.
IT revolution versus boardroom evolutionJohn Machin
2000 Balance Sheet
doi: 10.1108/09657960010338607
Investigates company Web sites and the use by them of IT. Posits that some companies are too much in a hurry to understand what is going on in IT, while others are just plain scared of the new technology. Looks at risk with regard to security and whether risk is changing for better or worse. Discusses further the Internet and the risks that are involved therein – with security an important part. Gives guidelines, in depth, on the four main issues to IT governance: market; design; operation; and security and uses bullet points for emphasis.