But for many audit committees today, these headline risks
are also driving a slower-moving--yet critically important--trend potentially impacting the audit committee's effectiveness: agenda overload.
A report released by Scott Wren, senior equity strategist at Wells Fargo Advisors, said that headline risks
are the type of risks that investors should be aware of.
We need to be cognisant of the fact that high gasoline prices and headline risks
can put a damper on consumer confidence and consumer spending.
Although further headline risks
on Cyprus and the Eurozone cannot be ruled out in the near term, risk reward for buying long end bonds has turned attractive at these levels, as witnessed by the return of some real money interest in buying the 15y bond triggered by 7.
With the IMF visit pushed back to May, there are few positive headline risks
in the pipeline in the very short term.
Gold's recent move is apparently tied to investors cashing in to offset declines in riskier assets, while industrial metals such as copper are closely linked to headline risks
from Europe, which is a major market for China," Niimura said.
Libyan oil is likely to be lost to the market for an extended period, tying up considerable amounts of replacement oil in much longer supply chains, and events in Nigeria, Iraq, Iran and Bahrain are likely to provide a continuing backdrop of headline risks
," they said.
We are pleased to be able to offer our customers the best-of-breed data, content, and tools they need to monitor both the credit and headline risks
inherent in structured-finance deals.
Besides community banks with smaller capital bases and weaker financial profiles, some deposit-taking subsidiaries of foreign banks could also face deposit outflow pressure in accounts exceeding the $250,000 limit if parent banks face heavy economic, financial, or headline risks
in their home markets.
The most interesting note, however, came from London-based equity researchers for Japanese financial conglomerate Nomura, which downgraded the bank one notch, to neutral, saying "in the face of these headline risks
, it is difficult for us to recommend investors buy the stock.
Over half of companies had at least one 'near miss'; * One in three companies suffered significant damage as a result of failure to manage risk; * The amount of time boards are spending on risk management has risen four-fold in the past three years; * Boards are now assessing a wider range of risks in the light of corporate scandals and regulatory intervention, but they are ignoring other headline risks
such as terrorism and the weather; and * Despite recent terrorist attacks, less than half of companies are reassessing their risk management strategies.
Middle and back office operations are being more closely scrutinized as investors expect sound operational practices that minimize investment and headline risks