Overheating Financial Market Brought on by a ‘Fearful’ Spate of Stress Events

Global Risk Watch Vol.16 July 2016

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

# Overheating Financial Market Brought on by a ‘Fearful’ Spate of Stress Events
Tsuyoshi Oyama, Partner/Head of Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC 

The UK referendum held on June 23rd resulted in surprise for the market with the EU-exit camp capturing the majority.
Further, as soon as the global market finally began to restore some stability from the financial chaos caused by the referendum result, a large-scale terrorist attack turned up with a truck running into a crowd of people on the Bastille Day celebration in Nice, France, and this was followed by an attempted coup d'état in Turkey.
The world has indeed seen a turbulent month.

*Please see the full article*

(PDF, 357KB)

Overview of Development in Financial Regulations

# The Impact of Strengthening Regulations in Asset Management Industry to be Noted
Koichi Iwai, Senior Manager,Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC

Recently, banking regulations seem to be under less scrutiny.
Meanwhile, regulatory reforms on the asset management industry are taking the center of attention.
Importantly, the contents of regulatory reforms on asset management industry are becoming fairly clearer.

*Please see the full article*

(PDF, 272KB)

Highlight of Indicator for this Month

# After the Brexit, Conflicting Signals of Uncertainties in Stock and Bond Markets
Yasuhiro Sobue, Manager, Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC 

Despite the severe turmoil in financial markets since the Brexit referendum in the UK held on June 23rd (Japan time June 24th), recent market figures indicated that stock market is gradually recovering.
The VIX (Volatility Index) fell to 12.82 (latest data as this article is written on July 14th), and US stocks (Dow Jones Industrial Average) also reached back up to a 14 months high level.

*Please see the full article*

(PDF, 356KB)

Seminars, Conference & Publication

【Deloitte Seminars & Conference】

# Deloitte Touche Tohmatsu Financial Services Industry Business Seminar (Held on July 7th, Tokyo)
In this annual seminar, Tsuyoshi Oyama (Head of CRMS, Deloitte Asia Pacific Risk and Capital Management Leader), held lecture regarding “Nine trends for deciphering the global financial regulations”, Shigeyuki Goto (Director at CRMS) –“ The New Normal and challenges for Insurance ERM”.


【Outside Lectures & Conference】

# The Institute of Financial Risk Management and Audit Seminar (Will be held on August 2nd, 2016, Tokyo)
Shigeyuki Goto (Director at CRMS) will hold lecture regarding “Conduct Risk” in audit practice.



【Article Contribution & Other Activities】

# Global Operational Risk Review 2016 / 2017 (October 8th, 2016, Euromoney Yearbook)
Tsuyoshi Oyama’s (Head of CRMS, Deloitte Asia Pacific Risk and Capital Management Leader) article titled “Operational risk management challenges facing Japanese banks – Stark differences in operational risk profiles between Japanese and other large banks” is featured in the “Euromoney Global Operational Risk Review2016/17” publication.
This publication will be presented at the Annual Meetings of the IMF & World Bank Group, held in Washington, on October 8th, 2016.

 # "The impact of Brexit from macroeconomic perspective"  *Japanese Only

Center for Risk Management Strategy is contributing on analysis of Brexit impact and key points from the macroeconomic perspective.
The series of article will be published on Deloitte Japan ‘Brexit’ website.

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