Risk Metrics - Identifying, Evaluating and Managing Risk Conditions

Why Should You Attend:

The US business environment as well as those of other countries has experienced significant risk events with significant risk consequences over the years. In recent times, there have been a considerable number of risk episodes. To the extent the risk conditions that caused a risk episode to occur could have been identified and corrective action taken at the time, the risk event may have been prevented or modified. Sound risk management practices that included an effective set of risk metrics could have possibly avoided or modified the risk episodes experienced.

This presentation will:

• Allow participants to reflect on the concept of risk metrics
• Provide a blueprint for creating a set of risk metrics
• List a large sampling of risk metrics that can be employed in two major financial industries

Some of the key risk metrics discussed will be applicable to participants from other industries as well as, including a few that can be relevant to their specific activities. The course is designed to help the formulation of a specific aspect of risk management in an organization and will prove to be useful for individuals with the responsibility of overseeing risk, managing the risk environment, and providing risk education.

Areas Covered in the Webinar:

• Understand Risk Metrics
• Provide a conceptual framework to comprehend the value of risk metrics
• Establishing risk metrics as a key element of risk management
• Defining Risk Metrics
• Review the basic elements of risk metrics
• Types of Risk
• Review of risk metrics in the context of different types of risk.
• Risk Metrics Applicability
• Review risk metrics in the context of risk environments
• Best Practices for Addressing Risk Metrics
• Thought process for establishing a set of risk metrics for a business activity
• Consequences of Ineffective Risk Metrics
• Potential impact of unidentified risk conditions
• Review of Actual Risk Metrics
• Display of a large sampling of generic risk metrics and risk metrics specific to a business activity
• Management of Risk Metrics
• Review how risk metrics should be monitored and evaluated and how risk conditions identified should be addressed
• Role of business management and the risk management function to address risk conditions

Who Will Benefit:

• Executive Managers
• Business Managers
• Risk Managers
• Compliance Managers
• Auditors
• University Risk Management Educators
• Regulatory Staff

Instructor Profile:

Robert Geary is the founder of Greenwich Risk Management Advisory Services, LLC, and serves as the principal consultant on many of the firm’s consultancy mandates. He has been a banking and finance industry professional for 41 years and has spent 34 years with JP Morgan Chase & Co in various roles pertaining to senior treasury, financial market, asset management and risk management.

Earlier in his career, Mr. Geary managed Chase Manhattan Bank’s euro and other offshore funding activities and was the bank’s first Asia/Pacific area treasury and financial markets executive located in Hong Kong. There for five years, he had overall functional management responsibility for the treasury, currency trading/sales activities and securities portfolios of Chase’s branches in nine countries in the region that included the major centers of Japan, Hong Kong and Singapore. Later in his career, he served for three years as western hemisphere area treasury and financial markets executive with similar responsibilities for Chase’s branches in South America, Canada, Panama and Puerto Rico, and went onto serve the institution in other financial market line positions.

For the last 6 years of his career with JP Morgan Chase, Mr. Geary had undertaken risk management oversight roles including head of market, credit and operational risk management for Chase Asset Management and being managing director of fiduciary risk management across the firm.

He has served on the board of directors of Chase Manhattan Overseas Banking Corporation as well as on numerous senior committees that included Chase’s Portfolio and Investment Strategy Committee, Tax Committee, International Asset/Liability Management Committee, Chase Investment Policy Committee, and Capital Markets & FX Risk Management Committee. Prior to joining Chase, he held positions at Chemical Bank, Chrysler Financial Corporation and National Bank of North America.

Mr. Geary holds a BA degree in economics from Pace University and did graduate studies in finance at New York University Graduate School of Business. He is also currently a member of the Executive Advisory Board of St. John’s University Department of Accounting and Taxation.

Topic Background:

Risk is present in all businesses. The ability to identify the potential cause of a risk event occurring and take corrective action is critical to the risk management of a business or any operating entity. The cause of risk is typically the result of the presence of a risk condition which is a weakness in the conduct or management of a business activity that can precipitate the occurrence of a risk event. For each operating unit and business activity of an organization, as part of its risk management oversight, there should be a set of indicators that will help identify risk conditions in the organization. These indicators are called risk metrics.

There are a number of generic risk metrics that typically apply to any business activity and then there are others that apply to a specific business activity. Risk metrics should consider all types of risk which would include: market risk, credit risk, operating risk, technology risk, fiduciary risk, client relationship risk, legal/regulatory risk, and guideline observance risk. Once a risk metric identifies a risk condition, it is then the responsibility of business management, together with its risk management unit, to undertake corrective action to address the condition. This risk identification and corrective action process will eliminate or reduce the potential occurrence of a risk event.

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