The consequences of “stagnant prices”, etc.

Global Risk Watch Vol.32 December 2017

Risk intelligence e-Newsletter provides an overview of various corporate management risks from a global perspective featuring key events that occurred over the past month and need to be carefully examined for risk management purposes. The Center for Risk Management Strategy (CRMS) as part of the global Deloitte Tohmatsu Group provides you with experienced analysis on risk management and financial regulation.

Overview Macroeconomic and Financial Risks

# The consequences of “stagnant prices”
Tsuyoshi Oyama, Partner/Head of Center for Risk Management Strategy (CRMS) at Deloitte Touche Tohmatsu LLC/Deloitte Asia Pacific Risk and Capital Management Leader

The stock market remains as strong as ever despite some sporadic uneasiness emerging like the sign of major correction.
Also, 3Q GDP growth in the US, EU and even Japan outperformed their potential growth rates by a large margin.
In China while the gradual deceleration of GDP growth continues, the growth rate itself remains robust thanks to strong consumer spending as well as investments into infrastructure and labour saving devices.

*Please download the full article


(PDF, 276KB)

Overview of Development in Financial Regulations

# Prescription for conduct risk
Shiro Katsufuji, Director, Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC

Financial institutions and corporate firms are facing a growing need for enhanced conduct risk management.
A series of misconduct incidents in financial and non-financial industries have contributed to the heightened attention to conduct risk.
Among financial institutions, typical examples of materialized conduct risk include sales practice of securitized products backed by subprime mortgage loans (which triggered the global financial crisis), and the manipulation of benchmark rates like LIBOR.

*Please download the full article


(PDF, 277KB)

Highlight of Indicator for this Month

# A brief look at wage trends
Toshikazu Kumagai, Manager, Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC

Japan’s 3Q GDP growth was up +1.4% QoQ (1st preliminary), continuing the trend of bullish results.
While still quite tentative, the fact that this is the 2nd longest economic expansion in recent history has also become a topic of discussion. Conversely, it has also been pointed out that this could be a recovery in name only – in that it has been widely reported in the media that commensurate wage increases are yet to be seen.

*Please download the full article


(PDF, 398KB)

Seminars, Conferences & Publications


# 2017 Deloitte Executive Forum - Risk Transformation: Asia's opportunities in cyber, third party, and regulatory risk management  (December 13, 2017 / Peninsula Hotel Tokyo) 
Center for Risk Management Strategy (CRMS) of Deloitte Touche Tohmatsu LLC is hosting an executive forum on risk management practices in Asia Pacific. Leaders of our global member firms will gather and discuss pressing topics, including how to streamline model risk management to reduce reporting costs, how to manage cyber security challenges, and market conduct as it pertains to benchmark rates. 


【Outside Lectures & Conferences】

# Financial Economy Conference (November 10, 2017 | Tokyo) sponsored by Shinsei Securities Co., Ltd.
Yuri Nakano (Senior Manager, CRMS) gave a talk on “Change in financial regulation and fund management for Japanese banks.”

# Asia Pacific CRO Forum (November 16, 2017 | Singapore) hosted by the Institute of International Finance
Shiro Katsufuji (Director, CRMS) participated in sessions on “Developments and Initiatives” and “Risk Management Framework” in the cyber security segment.

# Symposium on Building the Financial System of the 21st Century: An Agenda for Japan and the United States (October 21 - 22 / Odawara) hosted by Harvard Law School Program on International Financial Systems (PIFS) 
Tsuyoshi Oyama joined a panel discussion on international financial regulation as well as facilitated a group session. 


【Article Contribution】 

# Deloitte Touche Tohmatsu Monthly Magazine “Accounting Information” (November 2017 issue)Tsuyoshi Oyama contributed to the magazine’s November issue with an article, “2018 Global Economy Outlook: Global economic power challenged by rising asset prices.”

【Other Activities】

# Deloitte CFO Signals Japan : 2017 Q2 - How CFOs/CFO organizations engage with cloud computing and AI *Only available in Japanese
Deloitte has conducted the 8th regular survey on CFOs in Japan.
This survey analyzes the change in awareness of CFOs in a chronological order and the latest outlook in the “survey items on the economic environment” section.
It also investigates the awareness on risk scenarios of Japan and major countries from a macroeconomic perspective.
This issue’s hot topics include how CFOs/CFO organizations engage with cloud computing and AI (survey period: July 3 to 14, 2017).
CRMS has contributed to the observation and analysis part of the survey.

# ”Brexit Impact from a Macroeconomic Perspective ” available online *Only available in Japanese
CRMS provides timely information on the impact and key aspects of Brexit from a macroeconomic perspective on the special website of the Deloitte Tohmatsu Group.

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