Congratulations to all on the list on your new positions!
For more information about us or about hiring for your Compliance team, please email: contact@theriskpartners.com
#theriskpartners #onthepulse #seniorappointments #Compliance
Author: The Risk Partners
Why do Banks Fail?
Recently, the world has seen a couple of high-profile Banks run out of money and fail.
Everyone has heard the expression that Banks are “too big to fail”, so how does his happen?
1. Poor Risk Management: Banks can fail if they take on too much Risk on their investments / lending, without proper Risk Management controls in place. This can lead to significant losses, such as the ones experienced during the 2008 financial crisis. In this case, risk controls and due diligence in the housing market were not tight enough.
2. Inadequate Capital: Banks need to have sufficient capital to absorb potential losses (a buffer if you like). If they have inadequate capital, they may not be able to absorb losses caused by macroeconomic affects or ‘bad investments’ and may be forced to close.
3. Economic downturns: Economic downturns, such as recessions, can lead to increased loan defaults and decreased demand for banking services, which can result in significant losses for Banks. If customers cant pay back their Loans (Mortgages, Credit Cards, Car Finance etc) or Companies that borrow money go bust, the movement of money stops.
4. Fraud or misconduct: Banks can fail if they engage in fraudulent activities or other misconduct that erodes customer trust and results in significant financial losses. Banks now investment sizable sums of money in divisions such as Anti-Fraud, KYC teams (Know Your Customer) or AML (Anti-Money Laundering) to prevent this from happening.
5. Poor Governance: A subject close to our heart here at The Risk Partners! Banks can fail if they have poor Governance structures in place, such as weak Board oversight, inadequate risk management practices, or inadequate internal controls. If a firm is not policing its own activities, it can be a recipe for disaster.
6. Regulatory issues: Banks can fail if they fail to comply with regulatory requirements, such as capital adequacy and liquidity requirements, or if they engage in illegal or unethical practices. The rules of the game are established and can be viewed by anyone. Fall foul of the FED, PRA or EBA, significant penalties are coming your way!
In summary, Banks can fail for a variety of reasons and the above are just a selection.
Our job is to find your Financial Services business the talent required to stop your firm from falling into difficulties.
The Risk Partners are a boutique specialist recruiter, with Risk Management at its heart of its activities. We live in a world where Governance steers the world through often challenging times. Our aim is to work with clients to ensure that you find the right people for your business. Please get in touch to discuss how we can help you.
Why do firms fail to hire successfully?
On The Pulse: Senior Moves – Compliance: March 23
Some interesting moves within the London Compliance market. Congratulations on your new positions!
#theriskpartners #onthepulse #seniorappointments #Compliance
Compliance News: Further restrictions on Myanmar
EU enforces the sixth round of Sanctions against 9 individuals and 7 entities related to the continuing war in Myanmar/Burma.
Two years have passed since the civil war in Myanmar broke out in which the country has witnessed a distressing escalation of violence, human rights violations, and fears of peace, safety and stability.
The European Union this week continued their restrictions on private companies or entities supplying fuel, arms and funds to the military.
A press release published by the Council of the EU stated: “Other EU restrictive measures will remain in place: the embargo on arms and equipment and export restrictions on equipment for monitoring communications which might be used for internal repression.
“The export ban on dual-use goods for use by the military and border guard police, and the prohibition of military training and cooperation with the Tatmadaw.”
It continues to say: “The restrictive measures come in addition to the withholding of EU financial assistance directly going to the government and the freezing of all EU assistance that may be seen as legitimising the junta.”
The EU will continue their strong stance on outcomes such as “human rights human rights violations, including sexual and gender-based violence, the persecution of civil society, human rights defenders and journalists, attacks on the civilian population, targeting also children and persons belonging to ethnic and religious minorities across the country.”
The restrictions measures will add to the current total of 93 individuals and 18 entities with a designated approach to an asset freeze and travel bans designed to prevent them from entering EU territory.
For further information on the Financial Crime Market and / or Compliance Recruitment, please get in touch:
Taylor Catton – Compliance & Sanctions Specialist Recruiter
The Risk Partners are a boutique Governance specialist recruiter, with Compliance & Risk Management at the heart of its activities. We live in a world where Governance steers the world through often challenging times. Our aim is to work with clients to ensure that you find the right people for your business. Please get in touch to discuss how we can help you.
On The Pulse: Senior Moves – February 2023
Some interesting moves within the London market. Congratulations on your new positions!
Compliance News: Latest Russian Sanctions!
Sanctions across the globe continue to hit different nations, as the fight on Financial Crime aims to safeguard business around the world.
Organisations have this week hit the one-year mark of sanctions following Russia’s invasion of Ukraine on the 24th of February 2022. Last year, the Western world quickly responded to the outcry from the war and put a stop to Russian Banks, High-Net-Worth individuals and entities being able to trade in the US and EU.
In a further effort to stop Russia, the European Union are this week preparing to launch a new round of Economic Sanctions.
As reported by Rikard Jozwiak from the RFERL, “The centerpiece of this sanctions package, seen by RFE/RL, is export bans on EU goods worth 11.3 billion euros ($12 billion), using EU-Russia trade volumes from 2021. A whole list of products, stretching to nearly 70 pages, will be banned from going to Russia.”
He continues: “There is also an import ban on some Russian goods, mostly various types of rubber and asphalt, coming into the EU, to the tune of 1 billion euros.”
The sanctions package will take focus on the Russian military. Individuals and companies will also be hit with sanctions and asset freezes, as the fight on the Ukrainian front continues on for another day.
https://www.rferl.org/a/wider-europe-jozwiak-eu-sanctions-russia-banks-osce/32279022.html
For further information on the Financial Crime Market and / or Compliance Recruitment, please get in touch:
Taylor Catton – Compliance & Sanctions Specialist Recruiter
taylor@theriskpartners.com
The Risk Partners are a boutique Governance specialist recruiter, with Compliance & Risk Management at the heart of its activities. We live in a world where Governance steers the world through often challenging times. Our aim is to work with clients to ensure that you find the right people for your business. Please get in touch to discuss how we can help you.
Why Recruit your next vacancy through The Risk Partners?
Why Recruit your next vacancy through The Risk Partners?
The Risk Partners have a proven track record in delivering the best candidates for our Financial Services clients around the world.
“How do you separate yourselves from your competitors?” I hear you ask.
Here is how . . . . .
- Niche coverage ????: be great at a few areas, instead of average in many
- Honesty is policy ????: it’s in our DNA and surprisingly rare in the world
- Clear communication ????: if we have any information, we will pass it on
- Treat people with respect ⭐️: I mean that’s what we say to our kids . . . . practice what you preach
- Do our best ⚡️: many people don’t realise what goes on behind the scenes to fill job vacancies, but we will always do our best to help everyone
- People power ????: our assets are our staff, our Clients and our Candidates. This is not a numbers game; human beings deserve being treated properly.
Most of the above you would take for granted. But we felt it important to share this as we have heard some recent horror stories in the market!
If you like what you hear, please get in touch: contact@theriskpartners.com
#Values #TheRiskPartners #Hiring #Banking
On The Pulse: Senior Moves – October 2022
Its been a busy year all round, we hope you are looking forward to Q4. As part of our commitment to Risk Management, see our latest Senior Moves update.
Risk Management Update: Which areas are hiring?
MARKET UPDATE- Q3 2022
The summer has well and truly departed and it feels like an appropriate point to take a pause and reflect on market-wide hiring conditions.
2022 has been an extremely busy year for the Financial Services industry and employees’ workloads have definitely increased. As a result, hiring volumes have reflected this across the market.
Banks and Asset Managers in particular are reaching out to The Risk Partners to deepen / strengthen their coverage within Risk Management and Compliance.
WHICH AREAS ARE HIRING?
- Continued volatility across the Financial Markets have seen the increased demand for Market Risk / Financial Risk professionals to assess and provide accurate reporting on positions / movements.
- Enterprise Risk Management has seen a spike in demand as firms look to sure-up existing coverage of Risk Appetite, ICAAP / ICAARA and Stress testing.
- Given the worlds focus on Climate Change, additional headcount is being assessed for Climate Risk / ESG focused professionals.
- Credit Analysis has seen an increase as firms look to increase capacity in ensuring accurate due diligence of both FIG and Corporate customers.
- A niche area that has boomed is the Automotive Finance / Asset Finance sector within Financial Services. Huge customer demand for vehicle finance has seen specialised lenders assess their Risk Management approach.
- Corporate Banks are hiring Credit Administration professionals to help with the increased volume of loans being extended across Europe.
- We have seen a marginal increase in the number of Contract positions being brought to market (an area which has been suppressed during Covid). Temporary solutions whilst hiring longer term options are coming back into fashion
- Operational Risk has remained strong with Investment Banks and Investment Managers looking to bolster their approach to Risk frameworks
LOOKING FORWARD
Q4 will be a busy hiring market. If you are considering moving roles, now is the time to speak with us. We have some fantastic clients, but we need to understand your background, motivations and key likes / dislikes. Please get in touch contact@theriskpartners.com
Candidates are in short supply, so our advice is “if you like, strike”. Too often firms are waiting to “see what else is out there” and are losing out. Competitors will make the first move, if you don’t.
So, overall, a positive outlook for the remainder of the calendar year!
Stay safe and thanks for reading
Rob
The Risk Partners are a boutique specialist recruiter, with Risk Management at its heart of its activities. We live in a world where Governance steers the world through often challenging times. Our aim is to work with clients to ensure that you find the right people for your business. Please get in touch to discuss how we can help you.
