Topic: Digital Personalization - The Secret to Client Engagement & Loyalty

Speaker: Janice Liu, Senior Manager, Digital Strategy & Sales at CIBC

CCFA was honored to have Janice Liu, Senior Manager of CIBC Digital Strategy & Sales, to give a Lunch & Learn talk on Friday, March 11th, 2016. Janice shared her insights on digital personalization – the art of connecting with customers from behind a screen.

Janice leads the Digital Personalization & Campaign Optimization team which develops and executes personalization strategies to achieve digital fiscal sales across CIBC’s digital channels, such as CIBC.com, mobile and mobile app. Janice has over 7 years of experience in digital marketing. Her experience spans various industries from consulting, marketing and fashion wholesale. She successfully launched her own e-commerce business in 2011. Janice is passionate about technology and leveraging digital interactions to drive client-centricity.

Janice started her talk introducing the Consumer Funnel marketing model, which illustrates a consumer journey from the moment a product attracted consumer attention to the action of purchase. The shape and time span of the “funnel” vary depending on both the consumers and the nature of products. The model is useful as it provides a method to track the behaviour of customers and events that trigger the following stages. With better understanding of customers, digital marketers will build better personalization strategies on each stage.

From CCFA Communication, by Amy

Event Details

Information Session

Official Registration Link:  http://www.rotman.utoronto.ca/Degrees/MastersPrograms/MasterOfFinance/GettingIn/AdmissionsEvents/20160413_MFin_Info.aspx

Official Registration Link:  http://www.rotman.utoronto.ca/Degrees/MastersPrograms/MasterOfFinance/GettingIn/AdmissionsEvents/20160413_MFin_Info.aspx

Registration Link: 

http://www.rotman.utoronto.ca/Degrees/MastersPrograms/MasterOfFinance/GettingIn/AdmissionsEvents/20160316-Finance-Lab.aspx

Topic: China: What happened & what’s next?

CCFA has successfully held another lunch-and-learn event on Friday, February 12^th, 2016. We were honored to have Dr. Yanan Wu as the speaker, who is the Chairman and founder of Zhen Rong Bao (ZRB), an Internet+ financial products designed for retail investors. Yanan shared his insider’s observations on Chinese capital market and economy and the impact on global investment opportunities. Around 40 financial professionals attended the event. The talk was well received and ended with an animated Q&A session showing very good feedback from the audience.

The phenomenal but abnormal growth of Chinese stock market has brought huge investment opportunities. However, Yanan used the analogy of “Mad Bull” to describe the illusional Chinese bull market backed by the excessively high leverage. Bubbles eventually burst in 2015. Yanan discussed the three phases of A-share crashes and its aftermath, highlighting events such as liquidity squeezing, RMB daily floating band widening and circuit breaker.

In the last section of the speech and during Q&A, Yanan focused on the importance of combination of alternative asset management and internet opportunities. With diversification of investment portfolio and usage of rapid growth of mobile internet technology, the coming year in China is sure to be full of challenges and opportunities.

Topic: Valuation – an Art or a Science

Speaker: Rebecca Pang, CFA, CIBC

CCFA has successfully held another lunch-and-learn event on Thursday, November 27^th, 2015. We were honored to have Rebecca Pang, Senior Director of CIBC Channel Strategy and Analytics. Rebecca shared her insights on business valuation and valuation process in Mergers and Acquisitions, Investment Banking and Strategy & Corporate Development areas. Around 40 financial practitioners and professionals participated in this event. The talk was well received and ended with an animated Q&A session showing very good feedback from the audience.

After a warm opening remark about Rebecca’s background by Dr. Laurent Wu, the moderator of the lunch and learn event, Rebecca began sharing her thoughts on the importance and applications of business valuation, the arts and science sides of the valuation, and the career option at the end.

Recent days, valuation matters more than ever – valuing a company before make a stock investment, valuing a franchise business for purchase, watching the recent booming of M&A with valuations getting back into the dangerous zone, etc. At first, Rebecca highlighted the importance of valuation in areas of Risk management, PE/ Investing, Tax, Mergers & Acquisition, Business Case, Strategic Planning, Litigation, Investment Decision and Fairness Option.

Then she introduced the Science aspect of valuation such as the Definition of Fair Market Value, Key Valuation Methodologies - Market approach, Income Approach, Cost Approach and Leveraged Buyout including various approaches of Comparable, Precedent, DCF, Discount rate/WACC, Terminal Value. On the other hand, valuation is also considered as an Art. Rebecca explained various valuation approaches – the tools depending on industry differences, Discounts and premiums, Historical F/S adjustments, Inclusion of synergies and Intangibles.

In the last section of the speech, Rebecca provided an introduction of business valuation certification information. Rebecca finished her speech with an overview of different career paths of valuation professionals which actually helps the audiences to have an even clearer idea about future development as a business valuation professional.

From CCFA Communication

2015年11月21日，著名经济学家徐滇庆教授应加中金融协会(CCFA)和多伦多大学中国学生学者联谊会(UTCSSA)的邀请来到多伦多大学带给我们一场关于中国产能过剩问题的讲座。全程由UTCSSA研究生副主席赵阳主持，随后由CCFA主席张文琦以及中国驻多伦多总领馆教育组徐卫亚参赞致辞。

从讲座中我们了解到了产能过剩的含义是供给大于需求，产能过剩是经济市场的不平衡问题，也会给一个国家的经济带来不利影响。讲座中，徐教授带领我们详细分析了当前中国产能过剩的五大行业，探讨了中国人均住房问题，贫富差距增大的问题，以及政府部门对经济政策的影响。徐教授在讲座中多次强调简政放权的意义，并高度评价政府对于恢复宏观经济正常运行秩序的不懈努力。

讲座的最后，徐教授根据不同产能过剩性质对五大行业产能过剩问题提出了相应的应对策略，表达了对中国经济增长持乐观态度。同时徐教授也鼓励学生们好好学习专业知识，学会用数据做理性分析。此次活动座无虚席，感谢大家的到来，也感谢合办单位UTCSSA以及中国驻多伦多总领馆教育组的大力支持。

After the delivery of Enterprise Wide Stress Testing (EWST) on August 12, 2015, CCFA Risk Study group held the fifth study session on December 7, 2015. The topic is on Operational Risk. It was an honour to invite two experienced practitioners in the field of operational risk to lead the round table discussion. They are: Baifang Xing, Manager of Risk Methodologies at RBC, and Shunbai Li, Manager of Internal Rating Management at Scotiabank. Both speakers have extensive experience in the operational risk area. Yicent Chen, Model Risk Specialist from BMO was the facilitator. Other practitioners from leading Canadian financial institutions also joined the discussion.

The session covered Advanced Measurement Approach (AMA) methodology specifications, model challenges and limitations from model development perspective. A high-level overview of the operational risk capital model methodology was provided by the speakers. At first the speakers explained the definition of operational risk from Basel Guideline and in practical terms. Then they moved onto explaining the main factors that are associated with operational risk and operational risk capital calculation. In the end, they shared some of the on-going challenges industry faces from regulators and banks perspective.

Operational risk is defined as the risk of loss resulting from inadequate or failed internal process, people and systems or from external events. In practice, it contains all risk types that can’t be classified under market risk, credit risk, or any of the major risk categories. Basel uses two dimensions to define the characteristics of operational risk: event types and business lines. For operational risk capital modelling, a two dimensional table is created by setting event types as column and business lines as row. Each cell of this table contains a unit of measure which is used for loss severity and loss frequency estimation. There are two fundamental assumptions for the Advanced Measurement Approach: (1) it assumes loss events happen with the frequency they happened before, and (2) the magnitude of the loss, while random, is adequately captured by the past. This approach is being developed on the top of basic indicator approach and the standardised approach which are simpler and more straightforward. Modeller uses four different data inputs: internal data, external data, scenario data and Business Environment and Internal Control Factors (BEICF). Even though the model has been studied for more than ten years globally, significant challenges still exist as followings: internal and external data scarcity, capital volatility from low frequency and high severity loss event, truncated data due to reporting bias, inflation adjustment, foreign exchange adjustment, and common root loss event.

就企业整体压力测试（EWST）研讨后，CCFA于2015年12月7日迎来了第五次风险管理研讨会，课题是操作风险。我们荣幸地邀请到了在这一领域的两位资深从业者领导为我们主导这次的圆桌讨论，他们是加拿大皇家银行（RBC）的风险方法经理Baifang Xing，以及丰业银行（Scotia bank）的内部评级管理经理Shunbai Li。两位演讲者在操作风险领域都有丰富的经验。担任本次研讨会主持的是满地可银行（BMO）的模型风险专家Yicent Chen。参加讨论的还有来自加拿大各大金融机构的专业人士。

这次的讨论包括高级计量法（AMA）方法规范, 以及从模型发展的角度来看，模型的挑战性和局限性。演讲者对操作风险资本模型方法进行了概述。首先，演讲者们讲解了巴塞尔协议中对于操作风险的定义。之后，他们又对操作风险的主要因素和计算进行了讲解。最后，他们以监管机构和银行的角度，分享了一些产业正持续面临的挑战。

操作风险定义为，由于不适当的或失败的内部流程，人为和系统或外部事件造成损失而带来的风险。在实践中，它包含了不能被归类于市场风险，信用风险，或任何重大风险的其它所有风险类型。巴塞尔使用二维来定义操作风险的特征：事件类型和业务种类。操作风险资本模型，是一个将事件类型设置为列，业务种类设置为行的二维表格，该表格的每一个单元格包含一个用于损失额度和损失频率估计的度量单位。关于高级计量法（AMA）有两个基本假设：①假定损失事件及它的发生频率曾经发生过；②损失大小，过去偶尔会捕捉到。这种方法是建立在基本指标法和标准法上的，也是更简单明确的模范方法。分析员使用了四种不同的输入数据：内部数据，外部数据，场景数据以及商业环境与内部控制因素。即使该模型在全球已经被研究了超过十年，但仍然存在重大的挑战，如下：内部和外部数据不足，低频率和高度损失事件引起的资本波动，由于报告偏差引起的数据损坏，通货膨胀的调整，外汇的调整, 以及常见的根本损失事件。

After the delivery of Fundamental Review of the Trading Book (FRTB) Quantitative Impact Study (QIS) in early April, CCFA Risk Study group held the third study session on FTRB on April 16^th, 2015. It was an honour to invite Jun Yuan, Senior Manager from RBC and Lu Lin, Senior Manager from Scotiabank, to have a round table discussion on the topic, together with some practitioners on risk management from Canadian banks and members of the study group. Both speakers have involved in the past FRTB QIS exercise.

The session covered an introduction of FRTB, new regulatory rules on market risk, and FRTB’s Impact on business and industry. An overview of the Basel III’s revised market risk framework was provided by the speakers. There are two approaches can be chosen by a bank in measuring market risk: standardised approach and internal models approach (IMA). Banks must calculate the standardized capital charge for each trading desk, with calculation performed at least monthly.

The IMA requires approval from OSFI, and uses multiple risk factors. Expected shortfall (ES) must be computed on a daily basis, which is used to calculate the tail risk, focusing on the whole tail instead of only a point of the tail, as compared to Value-at-risk (VaR). Consequently, interval estimation instead of point estimation is required. Back-testing ES is a challenge for the financial institutions in terms of testing methods and data requirements. Basically, there will be higher requirement on the quality of the risk data, and all risk factors should be backed by real trades/transactions data.

As a high-level impact of FRTB on business and industry, regulators intend to improve transparency and comparability among banks. Going forward, banks will probably be required to apply both approaches. However, capital differences may be reduced since risk-weighted capital may decrease under the revised standardized approach, or it may increase under the revised IMA.  ES must be calculated on a daily basis for the bank-wide internal model for regulatory capital purposes for each trading desk. In addition, there is an increasing importance of the quality of the data. 

在四月初提交了关于交易账户的基本审查的量化影响学习之后，CCFA风险学习小组在4月16日举行了第三次学习。这次学习的主题是交易账户的基本审查。我们荣幸地邀请到了加拿大皇家银行的高级经理Jun Yuan，以及丰业银行的高级经理Lu Lin,为我们主导这次的圆桌讨论。参加讨论的还有加拿大其他银行风险管理方面的专业人士，以及学习小组的成员。两位演讲者都参加了之前的量化影响学习。

这次的讨论包括对交易账户的基本审查的介绍，市场风险方面新的监管规则，以及交易账户的基本审查对业界的影响。演讲者们对巴塞尔协定三的市场风险框架进行了概述。目前银行可以通过两个方法来测量市场风险：标准法以及内部模型法。对每一个交易专柜，银行需要进行至少每月一次的标准化的资本金计算。

内部模型法采用的是多个风险因子的方法，并必须通过OSFI的审批后进行运用。和风险价值（VaR）相比较而言，期望短缺值 （ES）也需每日计算，但通过对概率分布的整个尾部进行测量，而并非计算尾部上单一的点。因此，需要运用区间估计而并非点估计的方法来计算ES.由于对数据的要求提高，以及各风险因子必须用到真实的交易数据，目前各金融机构的从业者所遇到的挑战是如何运用测量方法以及如何收集处理数据来对ES进行回溯测试。

交易账户的基本审查对业界的影响是，监管人员在意图提高银行的透明度和可比较性。以后银行需要既采用标准法也采用内部模型法来进行资本金计算。但是，由于在修改后的标准法之下风险加权资产可能降低，而在修改后的内部模型法之下的风险加权资本可能上升，所以资本金的差别也可能降低。对每一个交易专柜，需要对ES每日进行计算。同时，数据质量将会变得更为重要。

Official Link