Visa buys Plaid from Position of Strength

In game-theory optimization, when a “big stack” makes a bet based on “position,” they have a competitive advantage.  Visa made such a move today with the acquisition of Plaid.  Please see the article on TechCrunch: Today, I will discuss why some risks have increased for Visa.  Visa is undoubtedly one of the largest companies… Read More

Risk Management’s Role in Driving Progress for the new “The Purpose of a Corporation”

The Business Roundtable on Aug. 19, 2019 issued a new “Statement on the Purpose of a Corporation.” When I have done risk management reviews, I have noticed that most risk processes have not been reviewed in light on this new statement.  I have listed some examples in bold within the commitment below by the 181… Read More

Risk Management’s 2019 Challenge

With the return of market volatility, slowing global growth, increasing debt levels, and growing trade and political tensions, it is time to take another look at Corporate Risk Management.  It’s been 2+ years since the OCC Bulletin 2016-05 that formalized the regulatory requirements for the three lines of defense, i.e. Front Line, Independent Risk Management,… Read More

Warren Buffett and Jamie Dimon join forces to convince CEOs to end quarterly profit forecasts

Blog Author Email: LinkedIn Profile: On June 7, 2018, CNBC provided a platform for two of the most successful CEO’s, Warren Buffett and Jaime Dimon, to influence other CEOs to end quarterly profit forecasts (Moyer).  No one can dispute that these two men are great leaders and great investors.  In fact, I am… Read More

Risk Mitigation for Facebook with Questions for Advertisers/Investors

Poor internal controls, political impacts, and lack of data usage transparency at Facebook have elevated privacy concerns for regulators, advertisers, and investors globally. The broad use of social media has desensitized most Americans to the risk of exposing vast amounts of personal information to companies like Facebook and Google. Will this event materially harm Facebook? Facebook… Read More

Customer Risk in Cryptocurrency and Florida Payday Lending

There are new risks that might evade detection by the current risk management machine learning models used in financial institutions. I wanted to share some interesting observations that could impact risk in credit card portfolios. Florida is a state dominated by small business services. All small businesses rely to some degree on credit cards for… Read More

How many “risk management fails” can Wells Fargo endure?

I have attached copy of my November 11, 2016 blog that appeared on LinkedIn.  At that time, I disagreed with the solution proposed by John Stumpf (CEO) and the Board of Directors of Wells Fargo.  Their initial solution was to discontinue the sales incentive goals.  If you remember the slogan, “Eight is great.”  This referred… Read More

Hurricane Harvey Risk Advisory – Investments

The US wakes up the first Monday after the catastrophic Houston flooding and the country is a bit poorer today.  Hurricane Harvey should have a negative impact on both the bond and equity markets, given the broad impact to business and consumers and the potential for increased government borrowing against a pending debt ceiling limit. I… Read More

Recognizing Diversity and the Evolution of Risk Management

Bob Phelan Financial Risk / Asset Management / Advisor One advantage of a long career in one business function is the ability to provide perspective on how the function has evolved. This year, I have taken the time to explore risk management options in different industries, evaluated the risk needs of corporate boards, and identified… Read More