Advanced Operations Management

by Loader, David

• ISBN13: 9780470026540
• ISBN10: 0470026545
• Edition: 2nd
• Format: Paperback
• Copyright: 2006-05-12
• Publisher: WILEY

Summary

In the fast changing business and financial markets, the role of operations manager is crucially important to any organisation. As automated processes increase and settlement cycles shorten, the demands on operations managers to embrace change and to become cost effective contributors to the bottom line increases. This book follows on from Fundamentals of Global Operations Management, 2e (0470026537). Author David Loader explores the challenges of being a good supervisor and manager in an environment of constant change, variable workloads and pressure to deliver quality services cost-effectively. He covers the key aspects of the role, which include managing risk, people and clients.

Author Biography

<b>David Loader</b> is Managing Director of the London based Derivatives and Securities Consultancy Ltd (DSC). DSC provides various consultancy and educational services to a wide range of financial institutions globally. David has over thirty years&#8217; experience in the finance industry, particularly in operations, gained in a number of major organisations including SG Warburg Group where he was Operations Director. He is heavily involved in financial education and training, as a Director of Computer Based Learning Ltd (providing e-learning solutions to the financial services industry), and as an author and presenter of training courses for The Securities and Investment Institute.<br> David is a member of The International Guild of Bankers, The Institute of Directors and The Securities and Investment Institute.

Table of Contents

Preface.

About the author.

1 THE CHALLENGE.

The profile of operations.

Operations is a business.

The challenge of change.

The challenge of management style.

The challenge of global markets.

The challenge of personal goals.

The challenge of dealing with events.

2 THE MANAGEMENT PHILOSOPHY.

Reporting lines.

3 THE MANAGEMENT OF RISK.

Market risk.

Characteristics of the products used.

Management risk.

Inadequate procedures and controls.

Information or reporting risk.

Market or principal risk.

Credit or counterparty risk.

Operational risk.

Means of reducing settlement risk.

Personnel/HR risk.

Liquidity risk.

Systemic risk.

Financial or treasury risk.

Technology risk.

Systems failures.

Technology awareness.

Legal risk.

Regulatory risk.

Reputation risk.

Other risks.

Malicious risk.

Country risk.

Understanding risk.

Controlling risk.

Strategic controls.

Management responsibility.

Role of risk management.

The risk management process.

Risk management departments.

Staff training.

4 SECURITIES FINANCING.

What is securities financing?

Stock lending.

Securities lending process flows.

Loan initiation.

Delivery of collateral and securities.

Management of benefits and collateral.

Return/recall of securities.

Payment of fees.

Lending agreement.

Repurchase agreements (Repos).

Collateral.

Securitisation.

5 TREASURY AND FUNDING.

Case study.

Unsecured borrowing.

Secured borrowing.

Money market instruments.

Derivatives.

Foreign exchange.

Treasury settlements.

Cash management.

Risk in treasury settlement.

6 RESOURCE MANAGEMENT.

Pressures on resource.

Defining resource.

Training and developing people.

Contingency planning.

Restructuring.

Training and personal development.

Succession planning.

Dealing with people.

The working environment.

Managing systems.

Technical performance.

Operational performance.

Difficult people.

Motivation.

No motivation means trouble is brewing.

Performance measurement.

Management of people.

7 TECHNOLOGY IN OPERATIONS.

Timing and resourcing.

Loss of key personnel.

Managing the operations function through the project.

Post-implementation.

Technology and the future.

8 PROCEDURAL DOCUMENTATION–CAPTURING THE KNOWLEDGE BASE.

The historical perspective.

The benefits of good documentation.

What is good procedural documentation?

In-house or outsource?

1 Skill.

2 Time.

3 Cost.

Maintaining, controlling and distributing the documentation.

9 CLIENT MANAGEMENT.

Customer relationships.

The approach to customer relationships and the ‘client culture’.

Know your client.

General guide to account opening and customer identification.

Money laundering.

Defining the service and establishing relationships.

What is considered as client service?

Establishing relationships.

The manager’s role in relationship management.

Structure of the operations function.

Responsibility.

Measuring service levels.

Escalation procedures.

Client liaison programmes.

Front-office client team.

Industry issues.

Training the team.

Analysing competition.

Developing the service.

What are the potential problems in customer relationships?

Managing risk in the customer relationship.

Client visits.

10 MANAGEMENT INFORMATION.

Information paths.

Distribution.

MI production.

Sourcing data.

Compilation and validation.

Production of MI.

Risks in MI.

11 OUTSOURCING/INSOURCING OPERATIONS FUNCTIONS.

Outsourcing.

Regulation and outsourcing.

Insourcing.

12 INDUSTRY DEVELOPMENTS.

Regulatory changes and T&C.

Industry recommendation.

Shortening settlement cycles.

What else?

Bank for International Settlement.

Securities Industry Association.

Alternative Investment Management Association.

International Swaps and Derivatives Association.

International Securities Markets Association.

GSCS benchmarks.

Other industry organisations.

Remote clearing.

The G30’s 20 recommendations.

Creating a strengthened, interoperable global network.

Mitigating risk.

Improving governance.

Appendices.

A FATF DOCUMENTS ON THE FORTY RECOMMENDATIONS.

B FATF–GAFI.

C CONSOLIDATED KYC RISK MANAGEMENT.

Glossary.

List of abbreviations.

Useful websites and suggested further reading.

Index.