Wrong Way Risk Survey

Research Objectives

The Risk Management Association has surveyed financial service institutions to determine the range of practices and standards currently used or planned to manage wrong way risk. The results of the survey provide valuable insight into and benchmarking data regarding common industry practices and the degree to which wrong way risk techniques have achieved general acceptance and standardization.

The survey also includes sections for comments to describe what, if any, impact the recent credit crisis and market disruptions have had on the respondents’ approach wrong way risk including current and future regulation and examples of specific and general wrong way risk.

Specific Objectives

Types of information included in the report:

  • Definition and scope.
  • Process and usage.
  • Governance and reporting.
  • Technology.
  • Methodology.
  • Additional questions.

A total of 56 large institutions based in the United States, United Kingdom, Europe, Australia, Africa, South America, and Asia completed the Web-based survey. The survey process took place in the spring of 2012. The survey contained 29 questions, split between multiple choice and written text responses.

Deliverables

The final report was issued in July 2012, to survey participants only. This comprehensive report contains detailed findings in its 80+ pages. It clearly describes the most prevalent methods, tools, and decision processes used to determine leading practices. You may view a synopsis of the Wrong Way Risk Executive Summary (PDF) by clicking on the aforementioned link. To purchase the complete survey, please contact Rosemarie Casler, 215-446-4081 or rcasler@rmahq.org. The cost of the report is $495 for an RMA member and $750 for a nonmember.

Institutions interested in participating in future market risk studies should contact Fran Garritt, Director, Market Risk and Securities Lending, 215-446-4122 or at fgarritt@rmahq.org.

List of Participating Institutions

ATB Financial
ANZ
Banco Bradesco
Bank of America
Bank of Tokyo
Bank of the West
BB&T
BBVA/Compass
BMO Financial Group
BNY Mellon
Capital One
China Trust
CIBC
Citi
Citic Securities
CLS Bank International
Commerzbank
Commonwealth
Crédit Agricole S.A.
DBS
DZBank
E.Sun Bank (Taiwan)
GE Capital
Goldman, Sachs & Co
HSBC
Huntington National Bank
ING Group
JPMorgan Chase
KeyBank
M&T
Macquarie Bank
National Australia Bank
National Bank of Canada
National Holding (UAE)
Nomura
Northern Trust Company
PNC
Rabobank
Regions Bank
Royal Bank of Canada
Santander
Scotia
SEB
Société Générale S.A
Standard Bank
Standard Charted
State Street
SunTrust Bank
TD Bank
Unicredit
Union Bank, N.A.
United Overseas Bank
USBank
Wells Fargo
Westpac
Zions Bank