Regulatory Compliance Archives - 12 Press Release https://www.12pressrelease.com/tag/regulatory-compliance/ Press Release Submissions Thu, 26 Jul 2012 13:15:18 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 Precisely what is liquidity risk and just how could it be avoided? https://www.12pressrelease.com/precisely-what-is-liquidity-risk-and-just-how-could-it-be-avoided/ Thu, 26 Jul 2012 13:15:18 +0000 https://www.12pressrelease.com/?p=83162 Liquidity risk is the risk that a given stock cannot be traded quickly or efficiently enough in the market to prevent a loss (or make a required profit). In other words, it's the possibility that you won't be able to buy or sell a stock for a reasonable price within a relatively short period of […]

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]]> Liquidity risk is the risk that a given stock cannot be traded quickly or efficiently enough in the market to prevent a loss (or make a required profit). In other words, it's the possibility that you won't be able to buy or sell a stock for a reasonable price within a relatively short period of time.

A lack of liquidity is most commonly evidenced by a wide spread or price difference between the bid/offer. A wide spread is typically caused by purchase and sale price inefficiencies due to low average trading volume in a particular stock. The bid-offer spread is used by market participants as an asset liquidity measure. This spread is composed of operational, administrative, and processing costs as well as the compensation required for the possibility of trading with a more informed trader.

Liquidity risk arises from situations in which a party interested in trading an asset cannot do it because nobody in the market wants to trade that stock within a relatively small price range between the bid and ask price. As a result, liquidity risk directly affects your ability to trade. Lack of liquidity may also contribute to slippage which is the difference between your estimated transaction costs and the amount actually paid.

Be aware that a manifestation of liquidity risk is very different from a drop of price to zero-also known as principal risk. In case of a drop of an asset's price to zero, the market is saying that the asset is worthless. However, if you cannot find another party interested in trading the asset, this can potentially be only a problem of you and potential market participants finding each other. This is why liquidity risk is usually experienced in emerging markets or low-volume markets.

Liquidity risk tends to compound other risks. If you have a position in an illiquid asset, your limited ability to liquidate that position at short notice will compound your market risk. So, if you can't sell a stock due to a lack of liquidity in the market - it becomes a sub-set of market risk.

The best way to avoid liquidity risk is to only invest in stocks that have an average daily volume of at least 500,000 shares or more. Higher volume for a stock is an indicator of better liquidity. Sufficient volume typically ensures that there is enough daily activity between buyers and sellers to keep the spread between the bid/offer relatively narrow. A narrow spread means greater efficiency, less slippage, and fewer surprises about the price you expect to get when you buy or sell stock.

Learn more about corporate compliance or regulatory framework

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]]> Wolters Kluwer Economic Services FRSGlobal is the sole provider of risk management and also regulatory compliance solutions on a single, unified platform. https://www.12pressrelease.com/wolters-kluwer-economic-services-frsglobal-is-the-sole-provider-of-risk-management-and-also-regulatory-compliance-solutions-on-a-single-unified-platform/ Fri, 08 Jun 2012 13:52:14 +0000 https://www.12pressrelease.com/?p=74962 Why is that important? Firms now realise that a major part of the problem that resulted in the financial crisis was not being able to get a clear picture across a company's entire operation. Firms recognise that to overcome these issues they need a more sophisticated and holistic platform that serves to gain full oversight, […]

The post Wolters Kluwer Economic Services FRSGlobal is the sole provider of risk management and also regulatory compliance solutions on a single, unified platform. appeared first on 12 Press Release.

]]> Why is that important?
Firms now realise that a major part of the problem that resulted in the financial crisis was not being able to get a clear picture across a company's entire operation. Firms recognise that to overcome these issues they need a more sophisticated and holistic platform that serves to gain full oversight, integrate all types of risk and create an environment where internal and external reporting are "as one".
The Wolters Kluwer Financial Services FRSGlobal solutions empower audit, compliance, finance and risk management professionals to make intelligent and clear-sighted decisions in a rapidly changing, global environment by providing the solutions they need to manage risk across their business, improve efficiency and grow their business.
What we offer
Infused with deep domain knowledge, Wolters Kluwer Financial Services FRSGlobal offers proven compliance and risk management solutions in four main areas:
Regulatory Intelligence
Information, processes and tools to integrate compliance and risk management into your workflow and help ensure compliance
Risk Management: Proven tools to identify and manage risk, and embed a culture of compliance across a financial services organization from the boardroom to the front lines.
Transaction & Origination Management: Solutions that help financial institutions limit risks and increase business efficiency when processing financial transactions.
Audit, Analytics & Reporting: Easy-to-use comprehensive tools enable financial organizations to confirm accuracy and compliance throughout their organizations, limit liability, and assure program effectiveness

Learn more about Solvency or Solvency

The post Wolters Kluwer Economic Services FRSGlobal is the sole provider of risk management and also regulatory compliance solutions on a single, unified platform. appeared first on 12 Press Release.

]]> Wolters Kluwer Financial Services FRSGlobal is the only supplier of risk management and regulatory compliance solutions on a single, specific platform. https://www.12pressrelease.com/wolters-kluwer-financial-services-frsglobal-is-the-only-supplier-of-risk-management-and-regulatory-compliance-solutions-on-a-single-specific-platform/ Mon, 28 May 2012 11:11:40 +0000 https://www.12pressrelease.com/?p=70100 Why is that important? Firms now realise that a major part of the problem that resulted in the financial crisis was not being able to get a clear picture across a company's entire operation. Firms recognise that to overcome these issues they need a more sophisticated and holistic platform that serves to gain full oversight, […]

The post Wolters Kluwer Financial Services FRSGlobal is the only supplier of risk management and regulatory compliance solutions on a single, specific platform. appeared first on 12 Press Release.

]]> Why is that important?
Firms now realise that a major part of the problem that resulted in the financial crisis was not being able to get a clear picture across a company's entire operation. Firms recognise that to overcome these issues they need a more sophisticated and holistic platform that serves to gain full oversight, integrate all types of risk and create an environment where internal and external reporting are "as one".
The Wolters Kluwer Financial Services FRSGlobal solutions empower audit, compliance, finance and risk management professionals to make intelligent and clear-sighted decisions in a rapidly changing, global environment by providing the solutions they need to manage risk across their business, improve efficiency and grow their business.
What we offer
Infused with deep domain knowledge, Wolters Kluwer Financial Services FRSGlobal offers proven compliance and risk management solutions in four main areas:
Regulatory Intelligence
Information, processes and tools to integrate compliance and risk management into your workflow and help ensure compliance
Risk Management: Proven tools to identify and manage risk, and embed a culture of compliance across a financial services organization from the boardroom to the front lines.
Transaction & Origination Management: Solutions that help financial institutions limit risks and increase business efficiency when processing financial transactions.
Audit, Analytics & Reporting: Easy-to-use comprehensive tools enable financial organizations to confirm accuracy and compliance throughout their organizations, limit liability, and assure program effectiveness

Learn more about compliance services or compliance services

The post Wolters Kluwer Financial Services FRSGlobal is the only supplier of risk management and regulatory compliance solutions on a single, specific platform. appeared first on 12 Press Release.

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