Women Gaining Financial Power Worldwide

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Women and Finance
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Rao Chalasani is a New Jersey resident with a range of professional experience in finance. For many years, Rao Chalasani has worked in various capacities for Merrill Lynch, the wealth management division of the Bank of America in New York, NY.

Merrill Lynch recently reported on the rise of women in the global economy. While there is still a wage gap, especially for women of color, the number of US women making six figures is rising more than three times faster than that of men.

In developing nations, women’s income is growing by 8.1 percent while men’s is growing by only 5.8 percent. The proportion of jobs held by women in the US rose from 37 percent in 1970 to 48 percent in 2007.

This could be good news for everyone, since without this growth, the US economy would likely be 25 percent smaller than it is right now. Boosting female employment rates to match that of men could mean a five percent boost to the US gross domestic product.

Nearly a billion women are likely to enter the global economy within the next ten years, and as more women enter the global marketplace, industries may adjust their focus on gender and change the way things are bought and sold. Even the structure of families may continue to change in coming years, for example with more dual income households, more women acting as breadwinners, and a higher percentage of single parents with financial independence.

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Enterprise Risk Management – An Overview

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Enterprise Risk Management System
Image: insightrisktech.com

Financial executive Rao Chalasani most recently served as chief technology officer and risk strategy director with Bank of America-Merrill Lynch in New York City, NY. During his time with the firm, Rao Chalasani invented a US patent pending “Enterprise Risk Management System.”

A strategic business discipline designed to evaluate and manage firmwide risk, enterprise risk management (ERM) also looks at the combined impact of risk in an aggregated risk portfolio.

Unlike more traditional approaches to risk management, ERM looks at the totality of risk rather than individual “silos” of seemingly unrelated risk. As a result, ERM involves all aspects of organizational risk, from compliance and governance to financial and reputational risk.

In practice, ERM collects risk information from internal and external environments, using it to develop structured risk management processes. Because many business leaders see ERM as a way to gain a competitive advantage, risk management often plays a central role in key decisions at all levels of the business organization.

What is the Enterprise Risk Management System?

Enterprise Risk Management System pic
Enterprise Risk Management System
Image: insightrisktech.com

New Jersey resident Rao Chalasani has been working in financial risk management since 1994. During his time at the Bank of America-Merrill Lynch in New York, NY, Rao Chalasani invented the US patent-pending Enterprise Risk Management System.

This system can be used by many different kinds of organizations. Unlike other forms of risk management, the Enterprise Risk Management System is implemented to assess risk across several areas of exposure, including financial, reporting, governance, operational, and strategic risk.

With the help of computer technology and extensive databases, organizations can view risks as interrelated rather than in separate categories and view them in regard to both short-term and long-term risk. Through this global understanding of risk, the framework can help an organization work at their most productive capacity.

Enterprise Risk Management System is currently in use at financial organizations all over the world, including the global Fortune 500 company Azco Nobel in the the Netherlands; Panasonic in Japan, which is one of the world’s largest manufacturers of electronics; and Harrah’s Entertainment in the US, the world’s largest branded casino entertainment provider.

UNICEF Strives to Reduce Ebola Transmission in Guinea

Skilled technology executive Rao Chalasani of New Jersey has applied his skills in roles at various New York City-based financial institutions, including Bank of America (BofA), JPMorgan Chase, and Deutsche Bank. A strong supporter of several charitable causes, Rao Chalasani dedicates his time and resources to such nonprofit organizations as UNICEF.

With schools reopening in Guinea, UNICEF and its partners are working in the country to reduce the risk of Ebola transmission among students and teachers. Prior to the reopening, UNICEF and partners assisted the ministries of education in developing important safety protocols to ensure that those with symptoms of Ebola are handled properly and referred to the nearest health clinic.

The organization also trained thousands of teachers to implement daily safety measures and to share risk-reduction methods with children, parents, and other community members. In addition, UNICEF distributed thermometers and hand-washing kits and is helping to deliver clean water to schools throughout the country.

Defining Value-at-Risk

An experienced finance professional based in New Jersey, Rao Chalasani most recently served as chief technology officer and director of trading risk management for Bank of America-Merrill Lynch in New York, NY. At Bank of America (BofA), Rao Chalasani developed a new risk management system that incorporated calculation of value-at-risk.

By definition, value-at-risk, or VaR, calculates the maximum loss under a determined probability in a specified time frame. The calculation of VaR requires the pre-selection of a probability percentage, a specified period of time, and a currency. Together, these three elements make up the value-at-risk metric.

As an example, an investment firm calculates the VaR on an asset at $100 million with a one-week, 95 percent confidence level. Under this metric, the investment firm may determine that an asset’s value is only 5 percent likely to drop more than $100 million over the course of one week. This determination can help an investor or manager compare the potential impact of an asset on a trading portfolio.

An analysis of available reserves and capital can determine the effect of the potential loss and help an institution determine whether an event would have a severe impact on capital. The technique can also be helpful in determining the risk to a complete portfolio or a firm as a whole.

The Role of CTOs

Rao Chalasani has built his career on a foundation of technology and development risk management strategies. A resident of New Jersey, he has worked at mega corporations in New York, NY, such as Bank of America (BofA), JPMorgan Chase, and Merrill Lynch. At Merrill Lynch, Rao Chalasani served as risk management strategist and chief technology officer (CTO).

On the surface, the role of a CTO seems simple: choose and implement technologies that facilitate success for a company. Below the surface, however, the specifics run a gamut of responsibilities. A CTO may be able to choose a third-party solution for the company, such as a database program to keep track of customer accounts and inventory. When such solutions do not exist, or when existing solutions do not provide the functionality the company needs, CTOs must lead the research and development (R&D) of a proprietary solution. In either case, CTOs need to adhere to standards and regulations.

CTOs must also be aware of tech trends and news that could affect the company’s bottom line. Toward that end, CTOs must monitor and evaluate emerging technology in order to determine if it should be brought into the fold, or passed over in favor of other products. CTOs communicate their decisions to their managers, as well as to partners, investors, and employees.

Types of Risk Management Strategies

Specializing in business and technology, New Jersey resident Rao Chalasani worked at Bank of America (BofA) in New York, NY, in the capacities of director of trading in risk management and business, and chief technology officer (CTO). At BofA, Rao Chalasani’s responsibilities comprised developing and implementing a company-wide risk management platform.

Risk management is a wheel with many spokes. Depending on a company’s goals and needs, risk management experts may invoke strategies such as risk acceptance, risk avoidance, and risk transference. Risk acceptance does not involve any mitigation; companies choose this option when they do not want, or do not have, resources to spend on implementing other strategies. They accept the risks and forge ahead, hoping that achieving success proves worthwhile.

Risk avoidance lies at the opposite end of the spectrum. Rather than brace for impact, companies spend resources on any and all actions that can mitigate risks. As a result, risk avoidance is usually the most expensive risk management strategy.

Falling somewhere in between risk acceptance and risk avoidance, risk transference involves the responsibility and ramifications of a given risk being handed to a willing third party. Examples include outsourcing operations such as customer service to other businesses, rather than handling it in-house. Risk transference works best for companies willing to admit that a particular operation is not its forte, and should be handled by more knowledgeable parties.