Predictions

Central Banks are Faced with Deepening Agony as Monetary Policy Reaches its Limits

Global Risk Watch Vol.17 August 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

# Central Banks are Faced with Deepening Agony as Monetary Policy Reaches its Limits
Tsuyoshi Oyama, Partner/Head of Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC 

At the beginning of July, the global financial market saw numerous events such as Brexit referendum in the UK and attempted coup d’état in Turkey.
Since then, the market managed to overcome the EU-wide stress test results and financial crisis in Italy, whilst steady growth of employment figures have also been confirmed in the US.
Meanwhile, for another interest rate hike the US FRB (Federal Reserve Board) remains cautious, and this has spurred a Gordilocks situation in the global market.

*Please see the full article*

(PDF, 272KB)

Overview of Development in Financial Regulations

# Conduct Risk Measures at a Crossroads
Koichi Iwai, Senior Manager,Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC

As we have addressed this topic several times over the last year, conduct risk remains one of the key themes in financial regulatory reforms.
It deals with conduct and incentive of employees in the financial institutions as well as various problems rooted in culture and tries to suppress undesirable actions of financial institutions such as mis-selling of financial products, manipulation of financial indicators, and money laundering.

*Please see the full article*

(PDF, 272KB)

Highlight of Indicator for this Month

# Coping with China’s overcapacity problem
Toshikazu Kumagai, Senior Staff, Center for Risk Management Strategy at Deloitte Touche Tohmatsu LLC 

As a measure to overcome China’s overcapacity problem, full-scale measures were outlined to reduce steel and coal production by 45 million tons and 280 million tons respectively by the end of 2016.

*Please see the full article*

(PDF, 458KB)

Seminars, Conference & Publication

【Outside Lectures & Conference】

# Financial Risk Management Forum 2016 (Will be held on November, 17th, 2016, Tokyo)
Tsuyoshi Oyama (Head of CRMS, Deloitte Asia Pacific Risk and Capital Management Leader) will lecture regarding “Financial regulations / Risk Appetite Framework”. 


# The Institute of Financial Risk Management and Audit Seminar (Held on August 2nd, 2016, Tokyo)
 
Shigeyuki Goto (Director at CRMS) held a 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 series of articles : "The impact of Brexit from macroeconomic perspective" (Since July 1st, 2016) *Japanese Only

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

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