22 March 2008www.the-actuary.org.ukRisk management failure blamed for credit crunchAccording to a new Datamonitor report, the inability to aggregate an organisation8217s overall risk position allowed a failing of credit risk principles in a relatively small section of the US housing market to spill into a wider liquidity risk for global wholesale finance markets. The report, The Evolution of Enterprise Risk Management, says the ongoing sub-prime crisis has highlighted the need for a truly enterprise-wide approach to risk management. Independent market analyst Datamonitor states that over-reliance on models and the continuing silo structure within the majority of organisations resulted in a lack of transparency, which led to a breakdown of confidence as market participants8217 exposure was unknown. The report concludes that this will provide the impetus for financial services institutions globally to re-evaluate their enterprise risk strategy and to leverage regulatory-driven technology spend into operational, risk-based performance management in the search for competitive advantage.NewsIndustryGlobal liquidity risk was allowed to spread from the US sub-prime mortgage market.Rene CerneyMSc Actuarial Finance"The MSc lets me meet like-minded individuals fromleading companies. The atmosphere in the lectures isgreat - both academic and relaxed, thanks to theexceptional teaching staff. Doing the MSc has renewed mypassion for becoming a qualified actuary."Kai Hoffmann, MSc Actuarial Finance student 2007and Mercer employeeFast-track your actuarialcareerFor more details please call us on 020 7594 9553or visit www.imperial.ac.uk/tanaka/actuary to book an information sessionIf you8217re looking for a broader pathway to professionalqualification, our MSc programme is for you. Part-time studywith us provides exemptions from most of the Institute andFaculty of Actuaries8217 exams*, together with world-renownedteaching and regular expert speakers from the financial industry.The MSc Actuarial Finance - a more motivating learningexperience.*Please visit our website for further information about Institute and Faculty of Actuaries8217 exemptionsTAN_Actuary_r1v2:Layout 1 22/1/08 16:11 Page 1022_Actuary_Industry_0308.indd 2219/2/08 11:30:25
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