The Risk Management Association’s research includes input from 45 global institutions.
Philadelphia, Pa. (August 16, 2006) —Results of The Risk Management Association’s (RMA’s) Market Risk Survey on Trading Activities and Counterparty Risks will be discussed at RMA’s Market Risk Forum on November 9, 2006 at The Coleman Center, 810 Seventh Avenue (52nd-53rd), New York City. It is open to all institutions.
RMA’s Market Risk Council initiated this survey, which provides detailed insights into the current practices and planned development relating to the measurement and control of market risk in trading activities and counterparty credit risk. Preliminary results were presented at RMA’s Market Risk Officers Round Table in New York on June 27, 2006. The preliminary results were based on the participation of 37 institutions.
This study is the fifth in a series of market risk studies being conducted by RMA to identify best practices and provide an ongoing benchmark in the area of trading activities and counterparty credit risk. So far, 42 large institutions in the U.S., Canada, Europe, Australia, and Asia have completed the Web-based survey. Three more institutions are expected to complete the survey before the final results are released this fall.
The November forum will feature a formal presentation of this survey’s results along with panel discussions and thought leader presentations based on both Trading Activities and Counterparty Risks. “This is a valuable event for both market risk and counterparty credit risk professionals because of the global nature of our research,” said Curtis Knight, RMA’s director of Market Risk and Securities Lending. “We expect a large turnout, so those interested in attending should register early.”
Study participants receive the final results for free. The final report presentation will show overall aggregate results and will deliver factual information. For the final report, frequencies will be broken down by geographical location (U.S., Canada, Europe, Asia, etc.) and leading practioners. Each institution also will receive an Excel® spreadsheet with their individual results to compare against the overall results, against others in their geographic area, and against the leading practioners. Where appropriate, comparisons to prior surveys will be analyzed and written into the final report.
To participate in or learn more about the November Forum, contact Fran Garritt, RMA at fgarritt@rmahq.org or 215-446-4122.
Trading Activities Survey Topics
The Trading Activities portion of the survey contained 66 multiple-choice questions regarding:
- Organization of the market risk management function
- Data collection and storage
- Measurement techniques
- Valuation Practices
- Scenario analysis
- Limits setting and reporting
- Actual Risk Management Results
- Capital Allocation
Counterparty Credit Risk Survey Topics
The counterparty credit risk portion of the survey contained 94 multiple-choice questions regarding:
- Methodology
- Credit standards
- Netting
- Derivatives trading supported by collateral
- Derivatives trading with recouponing
- Early termination clauses
- Repo trading
- Credit Risk IT Structure and Architecture
About RMA
Founded in 1914, The Risk Management Association is a not-for-profit, member-driven professional association whose sole purpose is to advance the use of sound risk principles in the financial services industry. RMA promotes an enterprise approach to risk management that focuses on credit risk, market risk, and operational risk.
Headquartered in Philadelphia, Pa., RMA has 3,000 institutional members that include banks of all sizes as well as nonbank financial institutions. They are represented in the Association by 17,000 risk management professionals who are chapter members in financial centers throughout North America, Europe, and Asia/Pacific.
Contact:
Kathie Beans
The Risk Management Association
PR Manager/Senior Writer
1801Market Street, Suite 300
Philadelphia, PA 19103
PH: 215-446-4095
FX: 215-446-4101