RISK MANAGEMENT IN FINANCIAL INSTITUTIONS

Developing an integrated operational risk management process
Roger A. Joseph

Addressing the practical challenges of Basel II compliance for operational risk
Ken Swenson

Model risk management in financial institutions
Dr. Alexander Shipilov

Credit risk modeling and management: Latest techniques for cutting-edge credit portfolio management
Mark Zelmer

Strategies for effectively managing reputational risk
Robert Dobbins

Measuring and managing liquidity risk
Elliott R. Carpenter

Implementing a holistic fraud & security risk management model
Nicholas M. Hodson

Barry Rowland is a senior partner in Ernst & Young's Financial Services Advisory Practice. From 2000 to 2004 he practiced in the assurance and advisory practice of Ernst & Young in the U.S. serving U.S. and international financial institutions. Prior to 2000 he was Ernst & Young's financial services practice leader in Toronto from 1993 to 1999. Barry's background has covered assurance and advisory services to banks, insurers, broker/dealers and lessors including substantive experience in the design, documentation and evaluation of governance, risk management and control systems for all phases of credit, financial, operational and strategic aspects of the financial sector. He has provided services to and had ongoing communications with senior management teams, regulators and directors at his clients in respect of these matters, and is familiar with the expectations and needs of all these constituencies. As well he served on the CICA's Financial Institutions Advisory Committee.

James L. Darroch is an Associate Professor of Strategic Management and International Business, Schulich School of Business, York University. He holds an M.B.A. and Ph.D. in Strategic Management and International Business from York University. Professor Darroch has taught at York since 1986. He was director of Entrepreneurial studies from 1993 until 1996, Area Coordinator for the Strategic Management Area from 1996-1999, and is currently Co-Director of the Financial Services Program, a Co-Director of the York Consulting Group and Program Director for the Risk Management Curriculum at the Bank of Montreal.

His research has focused upon strategic management for services firm with a particular interest in how large companies can become entrepreneurial. He has also written extensively upon the role of financial services firms as enablers in the economy. His major work in this field is Canadian Banks and Global Competitiveness. More recently, he co-authored with Robert L. Clarke, former Comptroller of the Currency for the United States, "The Use of Credit Registries in the Management and Supervision of Financial Institutions: What is Management and What is Supervision?" He has also published in Policy Options and The Journal of World Trade Law.

In 1997, he joined the working group for the Toronto International Centre for Financial Sector Supervision (Toronto Center). This is a joint enterprise among the Schulich School of Business at York University, the Canadian Government, The World Bank, and the IMF and the Stability Forum of the Bank for International Settlements. He helped to design and implement a global leadership and strategy program targeted at senior supervisory and regulatory officials.

As the Assistant Vice-President, Compliance and Risk Management at AIM Trimark Investments, Robert Dobbins has over 11 years of investment funds industry experience. He has held a variety of progressive management roles spanning compliance and operations, with an emphasis on risk management and investigative assignments over the last 5 years. Significant areas of risk management responsibility now include anti-money laundering, code of ethics, fraud investigations and regulatory compliance. He is a member of the internationally acclaimed National Society of Compliance Professionals and has actively served on various committees and working groups with the Investment Funds Institute of Canada. He is a Chartered Accountant and holds a Bachelor of Commerce from McMaster University.

Steve Hammond is the Vice President, Risk, Underwriting & Reinsurance at Royal & Sun Alliance Insurance Company of Canada. He is responsible for Enterprise Risk Management and the Underwriting & Reinsurance Strategy at Royal & SunAlliance in Canada. He also represents Canada on Enterprise Risk and is a member of both the world-wide Underwriting Forum and Reinsurance Practice of Royal SunAlliance. He is active in the Canadian insurance industry including being Chair of the Nuclear Insurance Association of Canada and is a member of the Chartered Insurance Institute (UK).

Dr. Alexander Shipilov is a Senior Manager in the Financial Risk Management Practice at PricewaterhouseCoopers. He has consulted financial institutions and corporate treasuries on valuation and risk management issues, working in the U.S., U.K, Spain and Russia. In Canada, his specific area of expertise includes implementation and validation of valuation and risk measurement models and control procedures used in financial institutions and treasuries dealing with valuation/risk measurement models, structured products and complex derivative instruments. Dr. Shipilov serves as Secretary/Treasurer on the Board of Directors for the Professional Risk Managers' International Association (http://www.prmia.org).

Mark Zelmer is the Director of the Bank of Canada's Financial Risk Office and a member of two management committees that advise the Bank's Governing Council on financial system and monetary policy issues. He has been with the Bank for almost 16 years, excluding a four-year stint with the International Monetary Fund between 2000 and 2003. In his current role he is responsible for providing strategic leadership to the Bank's new risk management office and has led its efforts to modernize the monitoring and reporting on the risks embedded in the federal government's debt and foreign reserves. While he was with the IMF, he played leading roles in assessing the soundness of various countries' financial systems, and advised emerging market countries on issues related to the design of their monetary frameworks, the development of financial markets and the management of their public debt.

David Dougherty is an expert in the management of market risk of derivatives and other trading products. He has over 30 years experience that has included executive positions in finance, asset/liability management and risk management. Most recently, David has worked at RBC Financial Group as Senior Vice President with responsibility for the independent assessment and control of market risk involved in RBC's global trading activities. He has led the implementation of many leading edge initiatives in market risk management. David recently decided to retire from RBC Financial Group in order to pursue other career interests. David holds a B.A. in Political Science from Bishop's University, a Masters in Economics from Concordia University and is a CFA charterholder.

Mr. Roger A. Joseph is a senior associate with RANA International, Inc., a canadian company specializing in change interventions based on facilitated processes and techniques. Roger is a dynamic and professional facilitator, process consultant, project manager and trainer with over 15 years of successful international and corporate experience. Roger has served as an organizational development consultant with a diverse mix of business units and cross-functional teams in the Pharmaceutical and Financial Sectors. He has also served as a Business Banker and Director, Learning and Performance at one of Canada's largest financial institutions where won top awards for his outstanding leadership and facilitation of corporate wide initiatives. Roger has a strong blend of academic and practical experience in the areas of Risk Management, Change Management, Leadership Development, Coaching, Project Management and Teamwork having completed studies in Process Consulting and Facilitation at RANA International as well as The University of Toronto. He holds a BSc in Accounting and a MBA in International Business from Wilfrid Laurier University in Waterloo Canada. His 6 years of association and training with RANA International Inc. assures his clients of a polished, integrated, performance-focused and world-class approach to each assignment.

Elliott R. Carpenter joined Ernst & Young LLP's in 1997 following a career in treasury and risk management in the banking industry. Elliott has over 20 years experience in treasury and risk management. His areas of experience include treasury organization and integration, asset/liability management, treasury management and operations, modeling of interest rate risk and liquidity risk, cash management, balance sheet management, wire transfer operations, funds transfer pricing, investment activities and financial forecasting.

Prior to joining Ernst & Young, Elliott was with Banc One Corporation and held various treasury and asset/liability management positions with Banc One's Western Region in Phoenix, Arizona. Banc One's Western Region consisted of banking subsidiaries in Arizona, Colorado and Utah.

Prior to joining Banc One Corporation Elliott was Asset/Liability Management Manager and Funds Management Manager for Valley Bank & Trust Company in Salt Lake City, Utah.

Prior to joining Valley Bank & Trust, Elliott was Assistant Treasurer for Fleet Bank of Maine, a subsidiary of Fleet Financial Group.

Elliott leads the firm's Asset/Liability Management Services Team and is a member of the firm's Global Treasury Advisory Group. Since joining Ernst & Young Elliott has provided treasury and risk management advisory services to financial institutions of all sizes and complexity, including numerous U.S. bank holding companies, mortgage companies, Federal Home Loan Banks, credit card companies, Canadian Banks and corporations.

Elliott has a Master of Science degree in Business Administration from Husson College in Bangor, Maine and a Bachelor of Science degree in Business Administration from the University of Maine. For six years, Elliott was a part-time instructor for the American Institute of Banking. He has been a speaker at numerous Treasury and Risk Management conferences and has published articles in Bank Accounting & Finance, Bank Asset/Liability Newsletter and the Bureau of National Affairs - Banking Report.

Clients - Numerous commercial banks (domestic and international), investment banks, federal home loan banks, mortgage companies, credit card companies, corporations and other financial service organizations.

Nick Hodson leads the Canadian operations of Ernst & Young's Investigative and Dispute Services. He has specialized experience in quantification of damages, fraud investigation, fraud risk assessment, and related risk management, stewardship and governance issues. Nick has given expert evidence before the Courts of Ontario, Manitoba and Quebec, before the Ontario Municipal Board and in arbitration proceedings. He has also acted as an arbitrator.

He is a Chartered Accountant and holds the specialist designation in Investigative and Forensic Accounting granted by the Canadian Institute of Chartered Accountants. He is Advisor to the Board and Past Chair of the Board of Directors of the CICA's Alliance for Excellence in Investigative and Forensic Accounting. He served on that Board for six years and chaired its Education Committee. Nick is also a Fellow of the Institute of Chartered Accountants in England and Wales.

He previously chaired one of the two Divisions of the Professional Conduct Committee of the Institute of Chartered Accountants of Ontario. Nick served on that Committee for six years. In that capacity he chaired hearings into complaints against members of the Institute and directed the Committee's deliberations.

Ken Swenson is a Senior Manager in the Financial Services Advisory (FSA) Practice of Ernst & Young LLP in Chicago. Ken has advised a number of top international and domestic financial institutions on operational risk management framework implementation methodologies. He brings an in-depth knowledge of the range of practices in designing and implementing operational risk framework governance structures and data collection efforts at large, complex banking organizations.

Ken has more than fifteen years of professional experience working with financial services organizations. He joined Ernst & Young from the Federal Reserve Bank of Chicago where he worked as a Senior Examiner - Operational Risk Subject Mater Expert.

Since joining Ernst & Young Ken's client engagements have included assisting large, complex banking institutions by leading the operational risk stream of an economic capital gap assessment and providing feedback versus peer practice on corporate operational risk policies and procedures, including risk and control self-assessment.

While with the Chicago Fed, he served as a member of the US Interagency Subcommittee for the Supervision of Operational Risk at Advanced Measurement Approach Banks in the US, and as a core member of the Interagency team that conducted on-site benchmarking reviews of operational risk management practices across US banking organizations. He was a founding member of the Chicago Fed's Operational Risk Team. Ken has been published in an industry handbook entitled Operational Risk: Regulation, Analysis, and Management (FT Prentice Hall, 2003) and has authored operational risk articles published in industry periodicals. He is a frequent speaker on operational risk.

Prior to his work at the Federal Reserve Bank of Chicago, Ken led capital markets and operational examinations of international and domestic banks (i.e., ABN-AMRO, the Bank of Montreal, Harris Trust & Savings Bank, and Nesbitt Burns Securities, Inc.) jointly with the FRB-Chicago. Assessed inherent risk and control environment. Participated in on-site examination of the Northern Trust -London.

Ken has a BA in Economics form the University of Iowa, and a MS in Financial Markets and Trading from the Illinois Institute of Technology. Ken has earned the designations of Certified Risk Professional and Certified Bank Auditor. Ken is a member of GARP and PRMIA.