The RMA Journal articles

Recent articles from The RMA Journal

The one constant is change.(From Your RMA Leadership)
February 1, 2009... Change alone is unchanging. --Heraclitus (c. 535-c. 475 B.C.), Greek philosopher Even as the financial crisis shakes our industry and the world economy, we know that the turmoil eventually will end. And when it's over, we know our industry will operate differently, with more capital,...

Expensive tuition: eight lessons learned from the credit crisis: it's back to the basics as the industry relearns some old credit lessons.(Economic Environment)
February 1, 2009... [ILLUSTRATION OMITTED] As we continue to work through the most challenging period in the financial services industry since the Great Depression, some lessons are beginning to emerge. While much of the damage was caused by complex credit structures, such as collateralized debt obligations...

Mapping expected declines in the U.S. auto industry: over the long term, U.S. auto and auto parts manufacturing will continue to struggle, proving a risky prospect in most bank credit portfolios.(Economic Environment)
February 1, 2009... [ILLUSTRATION OMITTED] The automotive industry is the bedrock of Rust Belt manufacturing. It helped build an industrious middle class and supplied the vehicles that connected the nation. But today auto manufacturers are struggling to survive. The recession and a high level of...

Model validation mitigating financial model risk: the financial crisis has revealed that models used to measure risk often are unintended sources of risk. Regular model review using a formal validation process can restore confidence in these vital business tools.(Enterprise Risk)
February 1, 2009... [ILLUSTRATION OMITTED] As the current financial crisis continues to unfold, questions have been raised about the use of financial models. Many now realize--albeit too late--that without periodic validation and proper oversight, the tools used to measure risk may themselves become an...

Understanding the Basel II use test in a changing credit cycle: the Basel II "use test" requires significant resources to implement, but it promises to usher in an exciting new era for banking.(Enterprise Risk)
February 1, 2009... Tucked away amid the 800-odd paragraphs of the Basel Committee on Banking Supervision's International Convergence of Capital Measurement and Capital Standards: A Revised Framework, otherwise known as the Basel II Framework, are two paragraphs relating to a "use test" directive. Under the...