Search results

The author suggests that methods for rating investment risk are flawed. He suggests a risk analysis, management and projects (RAMP) approach. Number‐crunching will produce better results than listening to analysts.

In this extract from his new book, Handling Investment Risk, the author examines operational risk and, with case studies ranging across Nigerian fraud, the split capital trusts scandal, Chase Manhattan in Russia and Deutsche Morgan Grenfell in 1996, shows how to deal with all the issues involved.

The author takes mining as his paradigm and analyses the approach to risk management showing that financial and fuzzy factors should be taken into account and, if handled effectively, can produce a very useful operational risk analysis.

Investigates risk and the difference e‐commerce has had on global markets and, in particular, how Western experts managed to get wrong the prospects for the future with regard to banks in Russia and Indonesia. Posits that analysing risk can be done in four different ways: identifying risk factors; evaluating likelihood and effect; prioritizing and budgeting; and planning. Uses two case studies for extra emphasis – BT‐UK versus Vodafone; and Eurasia Mining plc (UK), operating in Russia and gives good advice in the aftermath of these. Closes in stating that risk‐seeking is a factor of modern operational risk and it is a recipe for disaster.

Trust me, I’m a market regulator. What’s that? You reckon you’d rather believe in the tooth fairy? Ok, how about this then? Trust me, I’m a business risk assessor. Well assess this then – fraud is estimated to cost £14 billion a year in the UK in direct costs. And that’s without adding on the price of trying to prevent it in the first place, and sorting out the mess afterwards.