Ioannis Akkizidis, is product manager and financial risk analyst at FRSGlobal (which became part of Wolters Kluwer financial services in September 2010), he is also visiting lecturer at The University of Zurich. In this feature he highlights the significance, relevance and need, especially post the credit crisis, for institutions to embrace unified financial analysis (integrating market conditions with counterparty quality and behaviour related risk via financial instruments; where performance is driven by that of liquidity, value and income in a consistent and transparent manner)
Q1 - The importance of unifying financial analysis and what that means in managing profitability and risk?
Why risk should not be managed, analysed and implemented on a silo basis
Market conditions, counterparty and behaviour risk are linked via financial contracts forming the main input elements of financial analysis
Q2 - Discipline in conducting liquidity analysis
Liquidity risk is always a resulted risk - arising from the integrated analysis of the market, credit and behaviour risk, and potentially from losses arising from operational risk
Q4 - How to approach systemic and concentration risk
Statistically, a major financial risk event arises ever 1.2 years, somehow and somewhere in the world
Post the crisis - the reasons for escalated global contagion prospects even if a small counterparty were impacted
Q6 - The role of risk management and regulation - risk management as a part of profitability analysis
Costs involved and implementation in achieving financial stability
Since it is difficult to change mentality in the short run, what the regulators are trying to do is to change the whole system - and when this has been achieved, through the system achieve financial risk and profitability management
RSS
