FINED FOR POOR MANAGING OF INCENTIVES
1. Management often have schemes to help boost sales such as recruiting third party as agents/advisors or providing commissions and bonus to staffs.
"The Financial Conduct Authority (FCA) has fined Lloyds TSB Bank plc and Bank of Scotland plc, both part of Lloyds Banking Group (LBG), £28,038,800 for serious failings in their controls over sales incentive schemes. The failings affected branches of Lloyds TSB, Bank of Scotland and Halifax (which is part of Bank of Scotland)."
Source: www.fac.org.uk
2. The news was announced in December 2013 and below are key points pertaining to the SOP and management of incentives and advisors.
Sunday 18 October 2015
[Framework] Tail Risks AKA Blackswans
COVERAGE
1. "An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict."
Source: www.investopedia.com
2. Market tails are fatter or more frequent than people realise with extreme events not as rare as people thought.
Source: www.investopedia.com
2. Market tails are fatter or more frequent than people realise with extreme events not as rare as people thought.
3. These events are usually not predicted by computer models or traditional risks assessment exercises (falling near the low likelihood & high impact area).
4. Traditional risks assessment's low likelihood scenarios does not account for blackswans as they are still Unknowns.
Tuesday 6 October 2015
Insurance & Banking Innovation
INNOVATION CYCLE
1. Innovation is crucial as it evolves the industry with domino's effects onto other industries as processes becomes easier or faster.
2. The innovation cycle starts by problem identification, generating ideas to solve the problems and to execute the idea. Below are some of my comments on the innovation cycle.
3 Identify Problem - Is enough market Research being done? Are there distribution channel gaps? Market segment Gaps?
4. Ideas - Are there enough ideas to solve the Problem?
5. Execution - How fast is the execution to achieve first mover's Advantage?!
6. Below are some current trends that may or may not disrupt the industry follow by examples of innovative products found globally.
1. Innovation is crucial as it evolves the industry with domino's effects onto other industries as processes becomes easier or faster.
2. The innovation cycle starts by problem identification, generating ideas to solve the problems and to execute the idea. Below are some of my comments on the innovation cycle.
3 Identify Problem - Is enough market Research being done? Are there distribution channel gaps? Market segment Gaps?
4. Ideas - Are there enough ideas to solve the Problem?
5. Execution - How fast is the execution to achieve first mover's Advantage?!
6. Below are some current trends that may or may not disrupt the industry follow by examples of innovative products found globally.
[Framework] How COSO Perceives Risks
MISCONCEPTIONS
This post discusses the misconceptions on COSO's key concepts and how modern and traditional risks managers perceive and interpret risks.
The Committee of Sponsoring Organizations of the Treadway Commission(COSO) has established a common internal control model against which companies and organizations may assess their control systems. COSO focuses on critical aspects of organizational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting.
This post discusses the misconceptions on COSO's key concepts and how modern and traditional risks managers perceive and interpret risks.
The Committee of Sponsoring Organizations of the Treadway Commission(COSO) has established a common internal control model against which companies and organizations may assess their control systems. COSO focuses on critical aspects of organizational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting.
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