Profile of Andrew Waxman
Thought Leader
Member Since: 5/8/2014
Author
Blog Posts: 32
Posts: 7
Andrew Waxman writes on operational risk in capital markets and financial services. Andrew is a consultant in IBM's US financial risk services and compliance group. The views expressed her are those of his own. As an operational risk manager, Andrew has worked at some of the leading investment banks and consulting firms in Wall Street and the City of London. He writes on topics such as: rogue and insider trading, technology and markets, disaster planning, regulatory responses and risk management strategies. Andrew has a first class degree in history from Kings' College London and an MBA in finance from NYU.
Articles by Andrew Waxman
12/29/2014
Although the financial markets escaped having a rogue trading incident, 2014 brought a host of incidents ranging from cyber security and FX rigging to anti-money laundering and insider trading.
11/20/2014
Changing a bank's culture is not going to happen overnight, but having the right tools and levers in house will surely make a big difference over time.
10/21/2014
Chief data officers are new to the financial services C-suite, but they are facing a number of challenges, including the need for new data governance and execution strategies, staffing, and new organizational structures to enable cultural change.
9/8/2014
Is your bank leveraging all the key tools of manager enablement: education, preparation, incentivization and data analytics to help minimize the risk of losing your best people?
8/1/2014
Firms should assess their apps and data being exposed to the cloud for the level of security, privacy robustness, and frequency of development updates they require.
7/1/2014
Banks need to build discipline around the information lifecycle and the process of deleting data that is no longer required from a legal or business standpoint.
6/6/2014
Managers need to make sure they make good hiring decisions, or they risk long-term damage to their entire group.
4/8/2014
International banks and other global private entities need to ensure that they do more than pay lip service to the data privacy laws of sovereign states, writes Andrew Waxman of IBM's consulting practice.
3/31/2014
Large banks focused on securing firewalls find themselves outmatched by relatively tiny armies of hackers, writes Andrew Waxman of IBM's consulting practice.
5/15/2013
As we move headlong into a world driven by instantaneous news cycles, firms should take a step back to evaluate risks and set controls to prevent uncontrolled proliferation.
5/7/2013
While not as significant as bubbles in the housing market or Internet tech sector, the recent examples of bubbles in gold, Bitcoin and carbon are worth studying from a risk management perspective.
5/1/2013
Wall Street isn't the only place the the next con man could be hiding; academia and other industries can also fall victim to data manipulation.
4/25/2013
Apparent errors in an influential economic study by two Harvard Professors due to an Excel spreadsheet mistake is another reminder of the operational risks inherent in relying upon formulae hidden in obscure, nestled spreadsheets.
4/18/2013
Accounting firms should reinvigorate their training and controls regarding insider information because this is one area where enforcement works.
4/11/2013
Material rewards may not be the best way to improve employee satisfaction; helping employees fulfill their goals to lead engaged and interconnected lives will yield better results long-term.
4/5/2013
Breaking down Information silos, closing the distance gap between managers and employees and avoiding the use of technical jargon are three ways to structure an effective risk organization.
4/4/2013
Banks need to make traders more aware of their inter-connectedness with the lives of the people who support them in control functions, so that they think twice about the risks they take on.
3/26/2013
JP Morgan's decisions in handling the London Whale incident can be traced to a series of cognitive biases and limitations, writes Andrew Waxman, who analyzes bank executives' responses based on the work of psychologist Daniel Kahneman.
3/19/2013
Successfully preventing terrorist networks and drug traffickers from utilizing the financial system to launder money will require greater cooperation between banks and law enforcement.
3/11/2013
With billions lost in 2012, the risk culture of investment banks needs to change, starting with accountability and clear expectations for behavior. Banks must also tear down the walls that exist between market, credit and operational risk disciplines, writes Andrew Waxman.
3/7/2013
How can financial institutions identify traders who are taking undue risks or investment salesmen who are fronting a Ponzi scheme? Andrew Waxman provides some insight.
2/27/2013
The CFTC is on a mission to migrate interest rate and credit derivatives to transparent marketplace, fulfilling a role that is similar to what the first SEC Commissioner Joseph Kennedy did in the 1930s to revive equities, writes Andrew Waxman.
2/20/2013
What can the CFTC do to prevent future cases of blatant fraud, as well as the losses, similar to cases like MF Global and Peregrine Financial Group? Andrew Waxman offers some risk management techniques regulators should consider.
2/13/2013
A civil lawsuit by the Justice Department against Standard & Poor's shines a light on faulty ratings. But savvy traders at Goldman and Paulson & Co. saw early warning signs of the mortgage crisis in 2006 and 2007.
2/5/2013
Despite efforts to strengthen controls, the Libor scandal and recent valuation problems with JP Morgan's "London Whale" trade point out that banks still have exposure to price manipulation risk.
1/29/2013
The ongoing proliferation of insider trading cases at hedge funds points to the need for more transparency into investment decisions and trading processes. One way to stop the pattern is for hedge funds to form internal control groups that scrutinize the links between investment themes and material non-public information.
1/22/2013
With no let-up in the flow of operational risk accidents at major banks, firms are hiring more seasoned experts and throwing more resources at the function. But more work needs to be done.
1/14/2013
After a series of trading blow-ups by rogue traders, meet "the genius trader," who can do even worse damage. With their superior intellect, big egos,and technical expertise, they can easily win over CEOs. But, can risk managers reign them in?
1/9/2013
Andrew Waxman takes a look at the most significant operational risks, including the Facebook IPO and Knight Capital Fiasco, that occurred on Wall Street in 2012.
12/18/2012
Given the rapid growth of technology in all aspects of the market, the disastrous BATS and Facebook IPOs - and the Knight Capital episode - shouldn't have been a big surprise.
12/13/2012
After underestimating the strength of Hurricane Sandy, financial firms need to consider 'risk scenario planning' as a tool for forecasting what can go wrong in the future, writes author and risk analyst Andrew Waxman.
12/11/2012
The controls against rogue trading in an investment bank comprise a combination of cultural change and intelligent system re-engineering.
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