GARP Risk Institute recently completed its third annual Global Survey of Climate Risk Management at Financial Firms. The results detailed in this independent, comprehensive report are an eye-opening look at how financial institutions seek to measure and manage both the financial risks and opportunities associated with climate change through the lens of governance, strategy, risk management, metrics, scenario analysis and disclosures.
Digital currencies pose risks to financial institutions, nonfinancial firms, investors and others. This primer introduces cryptocurrencies (such as Bitcoin), stablecoins (such as Tether) and central bank digital currencies, and offers a practical breakdown of both the familiar and unfamiliar risks they present.
Leveraged loans are on track to be the next subprime, imposing large losses on lenders and the economy and destabilizing the financial system. Understanding the players, the instruments and the history behind this highly-complex market is vital to limiting the risks. Each of the four articles in this series offers a unique perspective.
Financial institutions today need rapid convergence on a workable measurement and management approach to climate financial risks. The CFTC's Climate-Related Market Risk Subcommittee has developed a comprehensive list of climate change issues to review, but it needs to be careful in striking a balance between imposing regulatory requirements and making climate risk management a compliance exercise. The findings of GRI's recent second annual survey on climate risk can help the Subcommittee achieve that balance.
The revised Stress Testing Principles offer a more streamlined approach than the original one. The updated principles are sensible and comprehensive, and they provide a guide to both banks and authorities on how to implement stress testing regimes that add meaningfully to risk management.
Jo Paisely’s career began at the Bank of England where she worked in various economist roles, ran the Statistics Division and spent the last part of her career in Supervision.