OPE25 Accounting and Finance 2023 Summit

Financial Performance Disclosures outside of the OPE25 standard - RWA Calculation for Operational Risk, are now erroneous. They fall under Section 802 (Criminal Requirements for Falsification of Documents) of the SOX Act in the United States and similar provisions in other countries.

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Helping banks and CCRs (insurance, industrial and service companies, including local authorities) to take the critical step of Loss Mitigation Account Reporting to OPE25 finalizing post-Basel III crisis reforms  - Economic capital accounts (EC) and SOX ratio to be taken into account to prevent and avoid bankruptcies.

It is now urgent to accelerate, encourage and support banks and CCRs to cross this critical threshold of weighted assets for counterparty credit risk (CCR) based on the Corporate Accounting process. Measuring the gaps to be filled at each reporting date taking into account the economic capital for mitigating losses, the accounting approach known as the "standardized approach" in force since January 1, 2023 is essential to avoid a new widespread bankruptcy of the banking system.

The failure of Silicon Valley Bank (SVB) and the series of bank failures that followed in March 2023 show that banks are not immune to financial crises until they complete the finalization of the post-Basel III crisis resulting in the OPE25- Calculation of RWA for operational risk. This is a critical phase of the Basel III post-crisis reforms: 

• "The proper identification, collection and treatment of internal data on losses are essential prerequisites for the calculation of capital under the standardized approach". 

This accounting process provides the economic capital accounts and the SOX ratio which have a significant impact on the BIC (Business Indicator Component) used for the calculation of the minimum capital requirements for operational risk (CBCB, "Basel III: Finalizing post-crisis reform", Dec. 2017). These shortcomings of corporate accounting and finance are at the root of financial crises. What was missing for action is the FinTech guidance the Financial Stability Board will show on June 27, 2017. The chain of cause and effect has long been known. 

• Losses related to operational risk impact cost prices and the entire economic system: high prices lead to high interest rates on the 3 markets: goods and services market, labor market and money market. These are the instability cycles known as the Irving Fisher model (The Purchasing Power of Money, 1911).

The calculation of RWA (Risk-Weighted Assets or counterparty credit risk) makes it possible to measure the unexpected risk based on a one-year outstanding amount of the borrowing party. Economic capital and the SOX ratio are essential for accounting requirements for valuation adjustments for counterparty risk. A prudent and credible calculation of RWA is therefore an integral part of the risk-based capital framework since RWA makes it possible to estimate and adjust the risk determining the minimum level of regulatory capital that a bank must keep facing to unexpected losses.

Fill with us the gaps in accounting method and technology:

This is the goal of the 2023 Accounting and Finance Summit - Calculation of RWA for operational risk:

Empowering internal teams to provide Economic Capital (EC) accounts and SOX ratios that better secure the liquidity risk of banks and counterparties Credit risk (insurance, industries, and services, including local authorities) than the assumption risky "Too Big to Fail".

 Due to a lack of skills and appropriate FinTech software, the laws and regulations of the countries put in place since 2017 have not allowed banks and CCRs to set up the operational risk management accounting system which would have made it possible to avoid bankruptcies. . This is the case in the EU with article 9a of the European directive of May 17, 2017 (Shareholder rights II) and in the USA of the SEC Non-GAAP Financial Measures of April 4, 2018, which set the legal framework for ' 'General criteria for identifying, collecting and processing loss data' (BCBS, Dec. 2017) which is now integrated into the Basel III Consolidated Framework, for OPE25, https://www.bis.org/basel_framework / 

 

IR data missing from the OPE25 standard to be provided to investors (Banks, stock exchanges and insurers under the control of the SEC and banking supervisors)

= 

Usual financial publications + missing data from the Economic Capital Accounts + SOX ratio

 

Where to provide these missing data?

You must act at two levels to provide investors with the missing additional financial information.

1/ At the level of the human capital accounts to be provided, complete under the OPE25 the critical HR financial ratios usually presented as those that matter to the investor [Net income group share per share, diluted net income group share per share, Operating coefficient, international solvency ratio, Return on equity (ROE), Workforce at the end of the year and Average workforce]. 

This data is clearly insufficient to make an informed investment decision on future financial performance. Add the 10 rows of missing internal financial security accounts:

• Current average workforce, 

• Current average net income, 

• Current contribution per employee to average net income, 

• Estimated Absolute VaR (Gross loss or loss before recoveries), 

• Potentially Recoverable Losses or recovery (Absolute VaR - Risk Appetite Threshold) calibrated to the tolerance rate of losses in your line of business), 

• 3-year plan to recover historical absolute VaR losses (UL + EL), 

• Free Gross Cash Flow per employee, 

• Economic Capital or Net Cash Surplus obtained in return for Variable salaries or Incentivized Pay, 

• SOX ratio of the capital structure, 

• Fixed salary future financial performance measurement data for salary negotiations in year N or 1st year of the plan in accordance with BCBC, Dec. 2017: accounting based on historical data].

2/ Complete your financial hedging instruments:

• A hedging financial instrument is a derivative financial product which makes it possible to reduce or cancel the risk inherent in a hedged item called the underlying. Many underlying financial instruments can be the subject of a hedging operation, we quote, shares, bonds, currencies, raw materials, rates.

This transversal area of expertise has few experts in the world, hence the persistence of the same shortcomings in the accounts published for 21 years 

(Remember the stock market crash of 2001-2002, against a backdrop of the debt crisis companies and resounding bankruptcies affecting the Enron and WorldCom groups).

Two world-renowned experts, researchers, and scholars from the University of San Francisco (Department of Accounting), co-authors of numerous authoritative publications and action-research case studies in banking and all industry sectors, help you to comply with the OPE25 Corporate Accounting and Finance standard known as the “standard approach” which replaces the mathematical or stochastic (statistics and probabilities) approach to financial risk.

Virtual conferences at your own pace based on applied case reports of OPE25 accounts - Calculation of RWA for the operational risk of the banking and CCRs sectors (Insurance companies, industries, and services, including local authorities) to avoid penalties for non-compliance with SOX control and financial reporting from 2023 by filling long-standing gaps in financial reporting.

Register now to avoid penalties for non-compliance with SOX control and financial Reporting 2023

This is the one-stop global and partner virtual event to align banks and Counterparties Credit Risk (CCR), SMEs, large accounts, Stock Exchange Companies and Finance Professionals with the OPE25 standard which now engages the criminal liability of Boards of Directors, managers, chartered accountants, and auditors.

• To be compliant from January 1, 2023, to raise funds on the stock market or obtain bank credit, financial reporting requires cross-cutting interaction data on internal financial performance. These are the economic capital (EC) accounts and the internal financial security SOX ratio which must be disclosed by the audit of the additional information supplementing the audited financial statements under AS 2701 (PCAOB Release No. 2013- 008) under the laws and regulations of countries, such as in the United States the SEC Non-GAAP Financial Measures of April 4, 2018, or in the EU, article 9a, of the European Directive of May 17, 2017, " Shareholder Rights II.

The laws and regulations of the OPE25 framework have indeed supplemented the SOX Act and the other countries internal control laws as expected. The US Senate vote creating “The Human Capital Assessment and Accountability Framework (HCAAF)” was passed in 2002, i.e., the same year as SOX Act whose Section 902 (Corporate Responsibility for Financial Report) was to be considered with Sections 404 (Operational Risk Control), 302 (Financial Reports and Internal Controls), 409 (Feedback in Real Time) and 802 (Criminal Requirements for Falsification of Documents).

The leadership that we hold in this area of expertise with the networking of universities and MBA Schools, gives us the responsibility of empowering Finance Professionals and the internal teams of banks and Counterparties Credit Risk (CCR) to take the methodological and technological aspects of Corporate Accounting & Finance required by the standard approach to the treatment of operational risk losses.

DIFFICULTY TO OVERCOME & ACCOUNTING EXPERTISE TO BE ACQUIRED:

The difficulty to overcome is the process generating the economic capital accounts and SOX ratio and on which accounting lines banks and CCRs should provide investors with these OPE25 data, hitherto absent from financial publications.

The OPE 25 standard - Calculation of RWA for operational risk underpins the accounting and financial management strategy of Banks and Counterparties Credit Risk or CCR. To be realistic, the mathematical or quantitative approach (statistics and probabilities) for estimating the forecast turnover and future cash flows, in particular the calculation of the growth rate, must now be linked to the corporate accounting process taking into account the total paid workforce, due to the predominant effect of HR, to mitigate losses generating economic capital accounts and the SOX ratio impacting both the cost price of products and services sold and the competitiveness of the entity and securing investments. 

LEARNING & APPLICATION EXTENSIONS AT THE WORKSTATION:

At the end of the summit, the participants CEOs, CFOs, HRMs, OMs, Heads of operational units or Cash Generating Units (CGU) as well as Treasurers from both the private and public sectors, in particular local authorities, have an overview of the cross-cutting interaction process of Corporate Accounting & Finance generating the added value of the Total Paid Workforce. They know in which section of their financial publications they must provide the missing "Loss data identification, collection and treatment" data required by BCBS, Dec 2017. This requirement is now integrated into the Consolidated Basel III Framework, for OPE25 in force since January 1, 2023 (https://www.bis.org/basel_framework/).

Considering the practical case studies learned, attendees will be able to produce, under the coordination of the finance function, similar periodic reporting accounts and setting up by learning by doing, the FinTech architecture of cross-cutting interaction completing, without changing anything to the existing one, the IT of the business units and the Loss Executives.

Join us from the validity date of your access codes

Follow the conference at your own pace for 30 days.

The teams of banks and Counterparties Credit Risk (CCR), SMEs, large accounts, Stock Exchange Companies and Finance Professionals, in particular accounting firms and auditors, benefit from advantageous conditions ranging from free to group rates !

You are eligible to this offer if you are:

• CEOs, CFOs, HRDs, OMs,
• Heads of Operational Units
• or Cash Generating Units (CGUs) including Treasurers,
• and Insurance Agents.

The same applies to students from:

• The Faculties of Economics
• The Faculties of Management
• MBA Schools including Executive Education or Continuing education.

You must register under the mandate or delegation of your university or under the mandate or delegation of the companies where you are on a work-study internship.

For all other delegates, the super early bird rate of $555 (excluding VAT) is available for a duration of 30 days.

You can benefit from free access under partnership.

 PARTNERSHIP TERMS & BENEFITS:

(1) You participate as an individual or for your company or organization. As such, if you are interested in offering the event yourself to your network, we will send you a URL link to relay the conference from your website.

(2) With the exception of the partners below, sales revenue will be split 40/60 (40% for you and 60% for us).

(3) Consultants, including Accounting, Audit firms and their professional associations, have free access.

(4) The same is true for Securities and Exchange Commissions (SEC), Risk Management associations, MBA Schools and University Management Faculties as well as continuing education organizations.

(5) If they relay and sell the conference for their network, then they apply condition 2.

(6) Event tickets for groups. The more you buy, the more you save: save 20% on tickets when you book a group of 5+ (You earn $555, so you pay $2,220 instead of $2,775) or when you book a group of 3+ (You earn $333, so you pay $1,332 instead of $1,665).

(7) Access codes are provided exclusively by HCM Accounting Academy.

Type of conference & Certification credits:

Instead of live broadcast, this is a demonstration conference for internal team learning at its own pace under the coordination of the CFO for large accounts, of the manager or CEO for SMEs, with simulation tests based on real company data followed by tests of the FinTech modules of the workstations and questions to the speakers.

• Conference attendees will be eligible for HCMA certification credit (3 credits are earned in accordance with certification body standards). The other advantage is 90 days (1 quarter) of free use of the FinTech of interaction of compliance of its workstation with the OPE25 standard.

HOT TOPICS

Your Main Learnings to be acquired through the 3 sessions of these conferences (Please note your access code to the 3 sessions is valid for 30 days):

SESSION 1

1. Serious Gaps in Skills and Tools Finally Addressed
2. Why do banks and CCRs need to take this step?
3. OPE25 sector case report - Calculation of RWA for operational risk justifying the urgency of crossing this milestone)

SESSION 2

4. Gaps in sector financial reporting to be Addressed
5. Transversal Corporate Accounting FinTech complementing the existing IT of Business Units for OPE25 (standard approach)

SESSION 3

6. Structural, regulatory, and technical requirements making these cross-cutting advances in risk management essential
7. Diagram of the OPE25 data accounting process reducing the uncertainty of financial mathematics
8. Global Fintech Corporate Accounting Extension Network

Conclusion

On-the-go operational compliance materials

Featured speakers:

They are the 2 co-authors of many publications that are today authoritative in this field where there are very few experts worldwide. Their support work for this OPE25 Accounting and Finance 2023 Summit is published by The Journal of Corporate Accounting & Finance (see July 2022 and February 2023 edition), The Journal of Financial Risk Management (see February 2023 edition) and La Revue Française d'Economie et de Gestion (see February 2023 edition). They are also the co-authors of Chapter 6, pages 83-127 of the 480-page SOX Business Accounting Reference Book advising banks, insurers and CCRs of economic capital segment accounts that they will need to learn how to provide from 2023. See "Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics (International Symposia in Economic Theory and Econometrics", Vol. 28), Emerald Publishing (UK, 1 March 2021), edition to which contributed experts from 54 universities under the coordination of William Barnett, (University of Kansas and Center of Advances in Monetary and Financial Measurement) with Bruno S. Sergi (Harvard University).

 

John P. Koeplin

Former Chair of Accounting, John P. Koeplin is an Associate Professor in the School of Management at the University of San Francisco. He earned a PhD in Accounting from the University of North Texas in 1998. His research interests include Human Capital Management Accounting, Accounting Education and Ethics/values in accounting.

 

 

Pascal Lélé

A researcher affiliated with the Department of Accounting at the University of San Francisco, Pascal Lélé pioneered corporate accounting as a process of cross-cutting interaction to run businesses as an organizational team and mitigating operational risk losses in time. real by going in the pyramid direction of the organization chart. It occupies a unique and exceptional position in enterprise risk management (ERM) and its structural relationship with management accounting, the FinTech architecture required for the standardized approach of OPE25. He holds three PhDs with expertise on the foundations of a transdisciplinary or interdisciplinary approach to transversal dynamics of organizations. He is the author of numerous books and papers published with academics from the University of Malta, the University of Cambridge (UK), Frankfurt (Germany), New Jersey (USA) and Georgia (USA) whose applied research he coordinated. been published in the USA in 2013, 2014 and 2016 by ISACA Journal for experts from the 200 member countries of the global IT audit association.

COUNTRIES INCLUDED BY THE SUMMIT

The conferences include:

A/ All countries that following the SOX Act have implemented internal control legislation.

B/ The conferences include and as a priority the following countries of the Progress report on adoption of the Basel regulatory framework published by BCBS in October 2021 5 https://www.bis.org/bcbs/implementation/rcap_reports_archive.htm ):

1.Argentina
2.Australia
3. Canada
4. China
5.Hong Kong
6. India
7.Indonesia
8.Japan
9.Korea
10. Mexico City
11. Saudi Arabia
12.Singapore
13.South Africa
14.Switzerland
15.Turkey
16.Kingdom
17. United States
European Union
18	Austria
19	Belgium
20	Bulgaria
21	Croatia
22	Cyprus
23	Czech Republic
24	Denmark
25	Estonia
26	Finland
27	France
28	Germany
29	Greece
30	Hungary
31	Ireland
32	Italy
33	Latvia
34	Lithuania
35	Luxembourg
36	Malta
37	Netherlands
38	Poland
40	Portugal
41	Romania
42	Slovakia
43	Slovenia
44	Spain
45	Sweden
Countries In the Process of Joining the EU
46	Albania
47	North Macedonia
48	Montenegro
49	Serbia
50	Turkey

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