Do rating models embody correctly the impact of macroeconomic variables on debtors’ solvency, determining a lag in downgrading? In pre-crisis periods, when interest rates increases are recorded as well as decreases in real growth rates, rating assessments fail to register risk increases in...

The definition of an internal process to prevent and manage reputational crises is a priority for banks.The Compliance Function can offer a tangible contribution to implement an effective crisis management process.The definition of a contingency plan, of a team of crisis management and of lines...

Which are the functions of a compensation system? How it can be used by a company or a bank as an instrument of human resources management? Which are the relations between remuneration systems and bank performances? Only the answer to these questions can help to redefine and project the...

The Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States was released on January 27th 2011.The strong political differences within the Commission prevented the draft of a shared report. In addition to the majority report, two dissenting...

Service agreements between the Compliance Function and Internal Auditing can be an effective and efficient option for achieving the objectives assigned to the Function and more generally to the system of corporate controls. Key principles for the drafting of AdS are not meant to be comprehensive...

The financial crisis has shown significant shortcomings in the supervision and in the internal control systems of financial intermediaries, not adequate to ensure an efficient risk management. It is therefore essential for financial institutions to promote a consistent risk culture and...

The reform of prudential regulation, realized by the Eu Commission after the financial crisis, aimes to reinforce markets integrity and to restore the confidence of investors. First of all, by strengthening cooperation between authorities and secondly creating a reliable and harmonized...

The new Basel 3 regulation will radically modify the functioning of banks, their relationship with the market and their profitability. The banks’ response to new and more stringent criteria must go through a redefinition of activities, a pricing review and a revision of operational processes...

Risk management is a process that needs to be strengthened, since it is aimed to reinforce banks’ stability and to prevent financial crises. For this reason, it should be embedded in business strategies and based on more severe evaluation techniques and stringent internal control systems