AFP -Association For Financial Professionals
December 07, 2012
Thinking about Risk and Asymmetric Risk in Banking
The whole point of opening and running a bank is to take on risks and to profit from knowledge of the risks. Ships were not built to sail in a harbor and banks were not built to avoid risk. Thus, if we are to turn a profit we must seek out risk, understand the risks thoroughly and insure we get on the right side of the risks. Also have to understand that risks are serial in nature and can behave nearly unpredictable when they interact. Asymmetric risks are fine, when and if they are understood and you are on the side of the fat tail. Never in history has so much changed so fast as we continue to accelerate. A fashion seen in a club in Moscow can be uploaded shared with many and become the next fashion trend in LA within days. We are part of this and need to think about the edge of the future.
What is Real Due Diligence?
Due Diligence is the most misused term in all of finance, its right up there with don’t worry – trust me. It has best been described as doing one’s homework so when in a field one can tell who are the foxes and who are the rabbits – as the answer is usually a surprise to both. So how do we apply appropriate standards of due diligence as professionals? We have so many statutory requirements under KYC and AML that we get lost in the fog of “have to do” as opposed to “this is profitable to do”. My objective is to share with you that I get the problem, but I want you to think of Due Diligence as an investment that pays excellent dividends. I ‘ll share my experience on working with banks in the US, Office Financial Centers, developing nations like Kosovo and one with problems such as those in the CIS states. Oh and I’ll show you some cool, free, and easy tools to use too.
Seminar will be held at the
Double Tree Hotel.- Tampa Airport – Westshore.
4500 West Cypress Street
Tampa, FL 33607