Risk Insights Resource Center
Displaying 456 results
Credit Risk Measurement: Alternatives for PD-LGD-EAD on the Horizon?
February 7, 2025
Even after 40 years, the PD-LGD-EAD framework is still going strong – but models with more power and greater predictive accuracy are lurking. Though ...
This CRO Finds Fulfillment in Ensuring That Clients ‘Retire with Certainty
February 7, 2025
“Every asset represents somebody’s dream, and every liability keeps someone up at night,” says Douglas Niemann of annuities leader Athene.
Climate Tipping Points Explained for Risk Professionals
February 6, 2025
Climate tipping points are extremely dangerous thresholds in Earth’s natural systems. What are they, how do they work, and how can we respond to them?
Legal Entity Identifiers – and the Foundation That Champions the Standard – Are at a Crossroads
January 31, 2025
The alpha-numeric codes that have been issued in hopes of averting systemic-risk pitfalls are only “foundational.” Can LEIs finally deliver on their ...
The Ultimate Model Risk: Lawsuit Could Prompt Big Changes to the Federal Reserve’s Stress Test
January 31, 2025
Questions about the transparency and objectivity of the central bank’s annual CCAR exercise have been raised in a recent lawsuit brought by banks, ...
Pacioli in the Computer Age: Back to the Future of Accounting and Risk
January 31, 2025
A time-traveling thought experiment finds modern-day relevance – and problem-solving insights – in the work of a Renaissance-era visionary.
Exploring the Climate-Nature Nexus: Insights From GARP’s Latest Risk Scenario Game
January 30, 2025
Gain practical insights into tackling the dual crises of climate change and nature loss in a dynamic learning experience.
Hardware Innovation Will Up the Ante for Risk Managers
January 24, 2025
Over the next few years, major advancements in hardware technology are expected, especially across the nuclear power, weather, transportation and ...
Cases Not Closed: Wells Fargo and Silicon Valley Bank in Legal Crosshairs
January 24, 2025
Former Wells risk and audit executives are penalized a total of $18.5 million; FDIC sues 17 ex-SVB officers and directors.
Tokenization: Benefits and Risks
January 24, 2025
Tokenization is transforming previously illiquid markets by making them more accessible, securing ownership and enabling easy transfers. However, it ...
IPO Hesitancy Pays Off for Platforms That Trade Private Shares
January 17, 2025
A Nasdaq spin-off sets an innovative pace. U.K. officialdom paves the way for upstart PISCES.
A Risk Forecast for 2025: 5 Predictions
January 17, 2025
Chief risk officers will need to augment traditional risk assessment with a new approach to radical uncertainties.
Augmenting Third-Party Risk Management with Enhanced Due Diligence for AI
January 17, 2025
With reference to processes outlined in regulatory guidance, key considerations for effectively addressing emerging due-diligence challenges.
Inside India’s Agricultural Resilience to Climate Change
January 15, 2025
Climate change is impacting India’s ability to grow food. Where are the effects most felt and what adaptations are being made?
5 Risk Predictions for 2025
January 10, 2025
Rising threats in cybersecurity, regulation, insurance and climate, global debt, and the supply chain are among the risk challenges that could be ...
The Six-Letter Word That Unites AI Factions
January 10, 2025
As debates rage over whether artificial intelligence is benign or evil and how it should be regulated, there is unity around the objective of ...
Sovereign Exposures: Zero Reason for Zero Risk Weight
January 10, 2025
Despite rising geopolitical threats and evidence that sovereign debt in Europe is now volatile, banks are still allowed by regulators to treat ...
Five Pillars of Generative AI Governance in Financial Services
January 3, 2025
GenAI-specific risks must be effectively addressed to ensure that the technology is fairly, responsibly and transparently implemented.
Privacy Can Be the Compass for Banks’ AI Governance Efforts
December 20, 2024
Prior experience offers guideposts for navigating uncharted regulatory waters.
Elevating Risk Management: The Imperative of Continuous Monitoring
December 20, 2024
Non-financial risks, like operational, cybersecurity and reputational threats, are exceedingly difficult to quantify. Instead of relying on ...
Corporate Digital Identity: The Key to Outpacing the Competition in the Evolving KYC Landscape
December 20, 2024
Manual customer profiling and due diligence is increasingly untenable. With “perpetual KYC,” client information is continuously monitored and updated ...
TD Bank’s $3 Billion Hit: Have We Reached Peak AML?
December 13, 2024
Does the Canadian-owned bank’s severe punishment signify that anti-money laundering enforcement is working well and fit for purpose? Or is the system ...
How AI Could Transform Asset Management and Financial Risk
December 13, 2024
AI in finance remains prone to occasional errors, and there is still a lot of room for improvement in communication between different systems. But ...
Tale of Two COPs: A Summary of COP16 and COP29 for Risk Professionals
December 11, 2024
Two major global conferences quietly came and went, largely overshadowed by coverage of international conflicts and major elections. What were these ...
Revisiting 60-40 Portfolio Allocations in the Wake of Volatility
December 6, 2024
Institutional investors winding down balanced stock-and-bond portfolios must manage the illiquidity of private equity, private debt and real estate ...
Rising Waters: Navigating the Future of Flood Risk and Insurance
December 6, 2024
Floods in the U.S. have increased in severity, frequency and volatility. How is this impacting homeowners, insurers, lenders and asset managers with ...
Leadership Insights: Understanding and Acting in the Climate Crisis
December 5, 2024
From risk management to real leadership, what does it take to deal with the consequences of the climate crisis? This article shares insights from ...
States of Confusion: Despite Much Discussion – and Hundreds of Legislative Proposals – AI Policy Lacks Clarity
November 27, 2024
Regulatory risk and uncertainty complicate the planning and implementation of high-priority technology initiatives.
Statistical Hypothesis Skepticism: Implications for Credit Risk
November 27, 2024
Despite recent criticism of null hypothesis testing in the scientific community, credit risk modelers continue to use statistical measurement tools, ...
Mossad-Hezbollah Aftermath: A New Perspective on Third-Party Risks
November 22, 2024
Although the war in the Middle East seems distant, recent attacks involving electronic devices have reminded us about the need for effective ...
Spot Bitcoin ETPs Dominate Even as Ether Offers Alternatives
November 22, 2024
Institutional interest is affected by staking methods and due-diligence requirements.
The Fallout from Political Elections for Central Banks
November 22, 2024
The global map of political leaders has been completely reshaped over the past year. Could this overhaul threaten the independence of central banks?
Are Digital Assets Up to Speed for Institutional Trading?
November 15, 2024
Blockchain technology is being primed for tokenization of assets. In terms of trade execution, an ECN venue is under 10 microseconds.
Debt Restructurings Ramp Up in Out-of-Court ‘LMEs’
November 15, 2024
Aggressive liability management exercises create conflict and can threaten lender priority.
Lost in Space: Risk at the Next Frontier
November 15, 2024
The case of the “stranded” astronauts, and other takeaways.
How Contracts Can Protect Businesses From Climate Risks
November 13, 2024
Contracts are an often overlooked — but powerful tool — to both mitigate climate risks and reduce carbon emissions. And help is at hand for companies ...
Read ArticleHow to Identify and Mitigate Hidden Risk Concentrations
November 8, 2024
Risk concentrations are unavoidable, but the ones that are concealed are the most dangerous. Which strategies can financial institutions employ to ...
Read ArticleCharting the Future of Consumer Credit Risk
November 8, 2024
Credit risk managers who want to get ahead of the curve must understand the areas of consumer credit that are of the greatest concern in 2025. What ...
Conquering Cross-Border Complexity with Effective Risk Management
November 8, 2024
In a fragmented global economy, compliance with local rules and regulations is key to managing risk when expanding across borders.
Keeping It Simple: A Quick Guide to Effective Risk Identification
November 1, 2024
Comprehensive, successful risk management requires proactive identification, assessment and mitigation of threats. What steps can financial ...
After Three Decades, Target Date Funds Are Still Working on Their Track Records
November 1, 2024
Derivatives, a relatively new wrinkle, introduce risks of their own, which one firm counters with put options on equities. Underperformance has been ...
Root Cause Analysis in Internal Investigations: Getting to the Heart of the Problem
November 1, 2024
The process can be difficult, and prescriptive guidance is lacking, but the right analytical and remediation approaches can influence “tone from the ...
Does the Blockchain Race Go Only to the Swiftest?
October 25, 2024
Admittedly “a little late,” Citi has racked up some firsts and is building on the foundation of its integrated digital-assets platform.
Reflections on the Past 25 Years: What Risk Managers Have Learned from the Technology Revolution
October 25, 2024
Engineering geniuses have greatly altered the way risk practitioners perceive the financial services industry and evaluate future scenarios.
Is Market Data Reform a Race to the Bottom?
October 25, 2024
Consolidated tape regulations in Europe and the U.S. are on parallel tracks with similar objectives, but there is no clear path to consistency and ...
Scenario Games: Can you Navigate the Climate Crisis?
October 23, 2024
GARP’s Climate Scenario Games pack provides you with all the necessary materials to hostan engaging and thought-provoking event about climate risks ...
Read ArticleDigital-Asset Risk Management: VaR Meets Cryptocurrencies
October 18, 2024
As institutional interest grows, a traditional risk methodology is being tested against crypto-market volatility and uncertainty.
A Swing Pricing Rule Was Highly Anticipated, but the SEC Left It Hanging
October 18, 2024
The regulator did not tip its hand on the controversial mutual fund requirement, but a re-proposal is possible next year.
The ECB’s Fresh Approach for Improving Culture and Risk Governance at European Banks
October 11, 2024
Traditionally, when providing guidance on risks related to culture and governance, regulators have emphasized positive attributes that banks should ...
The Art of Buying and Selling Risk Analytics
October 11, 2024
How can consultants or third-party vendors of analytics and models separate themselves fromthe pack? And what are banks looking from these external ...
A Closer Look at CrowdStrike and the Enterprise Security Wake-Up Call
October 11, 2024
The global tech breakdown underscores the importance not only of incident-response planning, third-party risk management and due diligence, but also ...
Mitigating Risks to the Supply Chain: A Risk Manager's Guide
October 4, 2024
Volatility in the global supply chain has been ramped up by geopolitical threats, laborstrikes, trade tensions between countries, natural disasters, ...
The Cash Management Impact of the Fed’s Rate Cut: How to Minimize Risk and Maximize Return
October 4, 2024
Changing yield curve dynamics are going to have a significant effect on risk-returntradeoffs in cash management. In response to reduced interest ...
Supply-Chain Risk Is Global. A Risk Management Strategy Should Be, Too.
October 4, 2024
Understanding not only the nature and causes of disruptions, but also the complexities of third-party interrelationships, in the interest of ...
Directors Beware: Director Duties and Nature Risks
October 2, 2024
Directors should consider their company’s nature-related risks, or they will be exposed to legal consequences, according to a recent legal opinion ...
Generative AI Has Made Banking Cheaper - But Has It Made It Better?
September 27, 2024
Large language models, like ChatGPT, have ushered in a new wave of AI that should savebanks time and money, and perhaps mitigate some risk. But there ...
What Political Forecasts Can Teach Risk Managers About Risk Filtering
September 27, 2024
How can risk managers better account for momentum bias and the other systematic errors ofpredictions? They can learn a lot from studying the flaws in ...
From Latency to AI- and Algo-Driven Capital Markets
September 27, 2024
Technology advances promise better resource allocation, fairer access and faster insights.
How to Manage Uninsured Deposit Liquidity Risk
September 20, 2024
Recent bank failures have confirmed that managing liquidity risk remains a complex and daunting task. This is particularly true for firms with large ...
Syndicated Loan Trading: An Automation Laggard No More
September 20, 2024
Big-bank-backed Octaura and Versana are delivering on their promises for data and operational modernization.
DORA’s Next Round: What Financial Institutions Need to Know
September 20, 2024
A new set of guidelines fills some gaps as the January deadline for EU operational-resilience compliance approaches. Data transparency and ...
A New Dawn for Strategic Planning in the Boardroom
September 18, 2024
Technological advancements as well as changes in reporting requirements and legal expectations are pushing companies to incorporate more long-term ...
There Is More to Cyber Incident Reporting Than SEC Disclosure Requirements
September 13, 2024
Filing “similar but distinct” reports to multiple agencies diverts resources from dealing with attacks and their aftermath, critics say.
The ECB’s Paper on Novel Risks and IFRS 9 Overlays: A Missed Opportunity
September 13, 2024
Forecasting loan loss provisions for emerging risks under the IFRS 9 accounting standard is an important and extremely challenging task. The European ...
Comparing Climate-Related Disclosure Requirements
September 11, 2024
How do the ISSB Standards build on TCFD?
Building Resilience and Bridges to Weather Risks
September 6, 2024
Interpersonal connections are core to organizational alignment and a resilient culture. Risk managers are “uniquely empowered” to streamline ...
Ignore, Acknowledge or Advocate: How Risk Managers Should Handle Political Risk
September 6, 2024
Politics impact every financial institution’s bottom line and risk profile. How important is it for firms to adapt to this constantly evolving ...
For This Data Scientist and Risk Manager, AI Is a Compelling Next Step
September 6, 2024
“The evolution of my career path” through data, risk and quantitative research brings AllianceBernstein’s Andrew Chin to chief artificial ...
The Risk and Return Profile of Index-Linked Annuities: How to Build the Optimal Portfolio
August 30, 2024
Complex financial products like registered index-linked annuities (RILAs) feature an array of risks and benefits. Evaluating all possible outcomes is ...
Whistleblowing, and How It Pays
August 30, 2024
Regulators increase rewards for enforcement assistance; SEC reports “unprecedented” public participation.
Risk Management’s Role in the Climate Transition
August 29, 2024
Simple climate targets are driving paper decarbonization, which has serious unintended consequences. Risk managers must keep this in mind and choose ...
Preparing for Disruptions: Lessons Learned from the CrowdStrike Outage
August 23, 2024
An IT failure of global proportions exposed shortcomings in resilience planning. More extensive, automation-aided scenario simulations will be needed ...
What Recent Turmoil Tells Us About Technology Risk Management Principles
August 23, 2024
The trading market suffered an ETFs-driven shock in early August. For technology risk managers, that event should serve as a reminder of the power of ...
Treasury Clearing’s Operational and Cost Implications Come Into Focus
August 23, 2024
Amid a transition said to be bigger than T+1, new providers prepare to move in, and interrelationships begin to take shape.
Balancing the Climate Transition with Economic Growth: A Tug of War or a Surge in the Same Direction?
August 22, 2024
To enable simultaneous growth and decarbonization, emerging markets must embrace innovative financial products which circumvent barriers to net-zero.
Chief, Czar, or Committee: Who Rules Over AI?
August 16, 2024
For a technology affecting business activities across the board and facing its own set of legal, risk and operational challenges, a chief artificial ...
How Would You Like Your Model-Based Financial Disclosures?
August 16, 2024
Disclosures from credit-loss models can divulge vital data about the key risks facing a financial institution. Today’s scenarios-heavy IFRS 9 and ...
Emissions by Sector: Strategies for Achieving Net Zero
August 15, 2024
Understanding the sources of global greenhouse gas emissions is essential for effective climate action. This article breaks down emissions by ...
How to Better Manage Operational Risk in Uncertain, Volatile Times
August 9, 2024
Banks must now contend with complex cyber hazards, growing AI and a variety of other threats, but there are specific steps they can take to improve ...
Peer-to-Peer Fraud: Scammers Adapt as Payments Go Digital
August 9, 2024
Lawmakers cite existing regulations – and propose a newly tailored rule – in pressuring Zelle and its owner-banks to strengthen consumer protections.
Don’t Be Deceived About ESG Sentiment. Companies Must Up Their Compliance Game.
August 9, 2024
Laws have differences and nuances, but all require a rethinking of risk management and compliance strategies.
Greenhouse Gas Accounting: 5 Tips for Getting Started
August 8, 2024
Greenhouse gas accounting can be a challenge, even if you understand the key principles. This article contains practical advice for getting started ...
Financial Market Infrastructures Press Their Case for Blockchain
August 2, 2024
DTCC, Clearstream and Euroclear place risk mitigation and control mechanisms within a digital-asset standardization and interoperability framework.
Credit Modeling: How to Improve Discriminatory Power
August 2, 2024
Predicting defaults is a difficult challenge for risk managers, partly because credit risk models often lack adequate discriminatory power. Some ...
A New Generation of Fake Documents Is Outrunning Conventional Anti-Fraud Capabilities
August 2, 2024
Look to artificial intelligence to detect and manage risks emerging from the technology’s dark side.
Climate-Related Infrastructure Failure Has Complex and Far-Reaching Economic Impacts
August 1, 2024
Damage to infrastructure has a broad range of impacts, which often aren’t considered by lenders. In this article, we look at how these impacts arise ...
Is the ‘Too Big to Fail’ Designation Too Constricting?
July 26, 2024
Business and technology interdependencies – like those exposed in the CrowdStrike-Microsoft breakdown – have financial regulators considering a more ...
What Risk Managers Can Learn from the Roots of Modern Technology
July 26, 2024
Technology is ubiquitous in risk management today, and its uses and potential dangers are too numerous to list. Risk practitioners must comprehend ...
The Stress Testing Road Ahead: How to Prevent Future Bank Failures
July 19, 2024
Today’s stress tests rely on antiquated approaches that do not consider the full spectrum of banks’ specific exposures to different macroeconomic ...
Avoiding the Risk Management Growth Trap
July 19, 2024
Banks that grow too fast are prone to failure, especially when they lack proper governance and risk management frameworks. But there are steps they ...
The Art of Distinguishing Real Risks from Pretenders
July 19, 2024
Risk managers today seem to allocate a lot of time to extreme “what if” tail-risk scenarios. Geopolitical risk is now the conjectural topic du jour, ...
Crypto-Connected Silvergate Bank, Overshadowed in the 2023 Crisis, Pays Regulatory Penalties
July 12, 2024
Three agencies assess the defunct California institution $63 million. Former CEO settles SEC charges for $1 million, CRO for $250,000.
Short-Selling and Securities-Lending Rules Meet Legal Resistance
July 12, 2024
The SEC says it is fulfilling Dodd-Frank transparency mandates. Alternative fund groups allege that they are flawed and arbitrary.
AI Regulation by Geography: How Jurisdictional Differences Have Emerged
July 12, 2024
Whether the varied approaches and emphases are seen as confusing or as healthy experimentation, financial firms must take their compliance ...
The Fed’s 2024 Stress Test: Key Takeaways
July 3, 2024
The good news is that the commercial real estate market is not projected to crater and that that large U.S. banks have enough capital to survive ...
A Big Tech Arms Race Is Fueling the AI Boom. Are Productivity Gains or Business Efficiencies in Sight?
July 3, 2024
Some of the billions of investment dollars make their way into risk and other enterprise-level solutions, but the big payoffs will take time to ...
Evolving AI: Threats and Opportunities
June 28, 2024
Financial institutions are clearly benefitting from machine learning and generative AI, but a recent academic research paper shed some light on a new ...
Market-Structure Changes Are Coming for U.S. Treasury Securities, and Competition Is Brewing
June 28, 2024
Clearinghouse operators look to challenge the current DTCC-owned utility provider; ICE enters the fray.
Nature Risk Measurement Is Evolving
June 27, 2024
As more leading firms identify nature-related risks in their portfolios, we examine how they’re doing it and how they’ve progressed so far.
Risk-Management Considerations Amid Continuing Supply-Chain Pressures
June 21, 2024
The causes and effects – and ultimate business impacts – are macroeconomic and geopolitical.
Are Board Risk Committees Up to the Task of Overseeing Large, Complex Banks?
June 21, 2024
Big banks today boast board risk committees, but the members of those committees often lack the risk expertise needed to ask tough questions on ...
An International Push for Anti-Money Laundering Reform
June 21, 2024
Authorities’ call for “urgent action” follows European Union legislation that could reshape the fight against financial crime.
How Do We Measure Global Warming?
June 20, 2024
There are a variety of ways to calculate global warming, but which one is best suited for policy?
New Reporting Rule Brings Repo Transactions Out of the Shadows
June 14, 2024
Regulators will see transaction-level data on “non-centrally cleared bilateral” – the last and biggest repurchase-agreement segment where ...
Commercial Real Estate and Bank Systemic Risk
June 14, 2024
Shining the light of available data on real estate loan quality, concentration risk and “market-value insolvency.”
The Limitations of Models and the Need for Simpler Scenarios
June 14, 2024
Risk models today are asked to perform statistical miracles, covering a multitude of far-flung scenarios that cannot be validated. This approach ...
How to Mitigate Risk and Improve Decision-Making via Probabilistic Thinking and Rare Events Modeling
June 7, 2024
Risk managers must acknowledge the role that chance plays – particularly in extremely unlikely events – to reduce risks and to make better, more ...
The Evolving Role of G-SIBs: Is Big Beautiful Again?
June 7, 2024
There is a growing appreciation for global systemically important banks. But G-SIBs still face tough risk management standards and high capital ...
After a Cyberattack, Assigning Blame Can Get Personal
June 7, 2024
The prosecution of a chief information security officer leaves other CISOs and their IT, compliance and risk management peers to wonder who might be ...
How Banks Can Better Manage Climate-Related Financial Risks
June 6, 2024
Actions can help a bank, its borrowers, or both. But which ones are most effective for managing the financial risks from physical climate events?
A Persistent and Systemic Threat Is Also a Common Thread
May 31, 2024
Cybersecurity continues to be a mainstay in assessments of risks to financial stability. Recent analyses look more closely at cyber’s ...
Reflections on the Value of Models
May 31, 2024
Right or wrong, models “are essential to making sense of the world.” It’s a problem “when people become servants to their particular models.”
The Potential Impact of Generative AI on Risk Careers: A Q&A with Michelle Liposky
May 31, 2024
The latest innovation in AI continues to transform the day-to-day jobs of risk managers. In which risk areas has generative AI gained traction, and ...
Understanding How the Financial System Impacts Climate Change
May 30, 2024
How does the financial system affect climate change? For example, are voluntary net-zero targets actually effective at driving the transition to net ...
Preventing the Next Bank Failure: Lessons Learned from the Fall of Republic First
May 24, 2024
Coinciding with the post-COVID struggles of the commercial real estate (CRE) sector in the U.S., more regional bank failures could be on the horizon. ...
Is the Three Lines of Defense Paradigm Dead?
May 24, 2024
A three-pronged approach to risk management has been widely employed by the financial services industry for the past 10 years. This model, however, ...
Five Ways to Strengthen Third-Party Cyber Risk Management – and Get Past Common Misperceptions
May 24, 2024
Contractual agreements and other protective measures may not stand up to all threats and crises. Business-continuity and incident-response plans, for ...
Navigating the New Regulatory Landscape: How European Banks and Risk Managers Must Adapt
May 17, 2024
Credit risk managers are going to have to adjust to new standards that are on the horizon for models and for artificial intelligence. What specific ...
The Rise of Conjectural Risk Management
May 17, 2024
Today, stress testing forecasts and ECL calculations are heavily reliant on guesswork scenarios that largely forego empirical data. How has scenario ...
How Extreme – and How Manageable – Are the Risks of AI?
May 17, 2024
Concerns are voiced about excessive energy consumption, biases, privacy invasions, and even the fate of humankind. “Responsible AI” alone won’t ...
Exploring the Connections Between Climate Change and Global Financial Stability
May 16, 2024
One of the many reasons for caring about climate change is its potential to lead to financial instability. But how might this happen and how likely ...
Synthetic Risk Transfers Draw Interest from U.S. Banks
May 10, 2024
More common in Europe until now, SRT deals can effectively off-load credit risks and help improve capital efficiency. But the pricing has to be right.
Read ArticleRethinking Technology Risk: Moving Beyond Guns, Gates and Guards
May 10, 2024
Risk management for a long time suffered from a narrow, protective approach focused on dangers, rather than risks and opportunities. As technologies ...
Data Privacy as a Driver of Governance, Risk and Compliance
May 10, 2024
With the coming AI boom and accompanying regulation, privacy assurance will pay off for organizations that respond effectively to public concerns and ...
It’s Time for Climate Scenario Analysis to Evolve
May 9, 2024
The speed, scale and style of the low-carbon transition to a net-zero economy poses complex challenges. Here’s how the Bank of England is extending ...
AI Rears Its Head as a Cyber Threat
May 3, 2024
Accompanying the widespread deployment of powerful new business applications is a growing realization that the technology also gives fraudsters and ...
Managing Inflation Risks: A Practical Guide
May 3, 2024
Price hikes and price uncertainty can have a huge impact on spending, investment, loan origination and, ultimately, default risk. But what tools can ...
A New Look at the Supplementary Leverage Ratio
May 3, 2024
Should a pandemic-era policy response to Treasury market turmoil be reinstated permanently?
A Tool for Systemic-Risk Analysis Is Making Some Long-Awaited Headway
April 26, 2024
The ACTUS data standard is seen as helping regulators to identify brewing crises early enough to take mitigating actions.
A Modest Suggestion to Improve Stress Testing
April 26, 2024
The current process for ensuring that banks have enough capital to cover their potential losses is too reliant on conditional scenario analysis. ...
Navigating the Unknown: Manage Geopolitical Risk Proactively
April 26, 2024
Acknowledge complexity and uncertainty and prepare for various disruptive scenarios, a leading risk analysis and intelligence executive advises.
Corporate Treasury Power Play: Strategic Moves to Maximize M&A Success
April 19, 2024
When preparing for a merger or acquisition, the treasury team can actively shape its success, assuming a pivotal role in the due diligence, ...
The Budget Brain-Teaser: How to Optimize Capital
April 19, 2024
Markets can evolve rapidly, sometimes driven by unprecedented events, and financial institutions therefore cannot over-rely on historical data for ...
Dividend-Paying Stocks: Where Mitigating One Risk Begets Another
April 12, 2024
Amid sky-high stock prices and interest rates, investors reaching for income must sift carefully through dividend-paying stocks to avoid value traps.
Reflections on Daniel Kahneman’s Contributions to Risk Management: The Power of Human Frailties
April 12, 2024
All major risk management failures of the past 50 years have been driven at least partly by human biases and tendencies. Now is a good time to ...
Anti-Fraud Strategies Take Center Stage Amid Consumers’ Shifting Expectations
April 12, 2024
Financial firms can strengthen relationships and loyalty by protecting consumers from, and educating them about, the threats.
When Insurance Becomes a Risk Factor
April 5, 2024
Insurance products can help mitigate and properly distribute risks, but also often come with perverse incentives that can work against risk managers. ...
T+1 Settlement: A Hard Deadline Approaches, with Some Gaps in Preparedness
April 5, 2024
Firms globally must be ready for North America's shorter securities processing cycles by May 28. Similar mandates for EU and U.K. markets are ...
How to Grow Your Risk Hiring Potential: A Q&A with Robert Iommazzo
April 5, 2024
The outlook for career growth in risk management remains robust, despite high interest rates and restructuring at many financial institutions. But ...
3 Key Areas for Understanding Nature-Related Risks
April 4, 2024
Nature-related risks remain both less understood and less widely discussed than climate risks. As nature and biodiversity continue to decrease ...
Nature Risk: The Velociraptor Next Door
March 28, 2024
What’s the difference between the risks nature imposes on humans and the risks humans impose on nature? What are some examples, and what steps can ...
Post-Libor Transition, There Remain Refinements to Be Made and Risks to Be Aware of
March 28, 2024
Market participants are told to stay vigilant “to preserve the robust system of reference rates achieved through the decade-long transition effort”.
The Data Conundrum for Risk Modelers
March 28, 2024
Understanding the Difference: Forecasts, scenario projections, and model outputs aren't raw data; they carry inherent errors and biases. Risk ...
Physical and Transition Risk Interactions: A Case Study in Mining
March 26, 2024
More frequent extreme weather events could make it harder to produce the minerals needed for the transition to a low-carbon economy. We explore how ...
Private Credit Moves In on Traditional Loan Channels, and Regulators Are Watching
March 22, 2024
The segment remains small relative to total debt and the economy, but the risks of contagion and banking instability cannot be ruled out.
The CRR3 Output Floor: A Strange Backstop for Credit Risk Measurement
March 22, 2024
Basel 3.1 has a so-called output floor that places strict limits on the amount of benefits a bank can gain from using internal models to meet ...
How Blockchain Technology Can Streamline an Investment Value Chain
March 22, 2024
Eliminating intermediary steps and inefficiencies isn’t merely theoretical. A property lending firm’s CTO explains.
The Run on SVB: How Much Did Technology Have to Do with It?
March 15, 2024
In a world of “faster, always on, real-time money flows,” customer withdrawals en masse exacerbated the California-based bank’s catastrophic ...
Balancing the Business Model and Concentration Risk
March 15, 2024
It is extremely difficult to identify, measure and manage adverse concentrations. Why is it important to understand the effects of concentration risk ...
Risk Management and Generative AI: A Matter of Urgency
March 15, 2024
Identifying safeguards as risks come into view.
Sustainability's Impact on Risk Management Through Climate Stress Testing and Net-Zero Portfolio Simulations
March 14, 2024
As the urgency of tackling climate change becomes more real, risk management in financial firms is changing.
In the SEC's Cyber Disclosure Rules, Timing Is a Sticking Point
March 8, 2024
Risk and operational concerns center on a four-day reporting deadline, while other principles and objectives are less contested.
Cyber Risks Spark Optimism in Cat Bond Market
March 8, 2024
Expectations are high even as the growth factor of inflation recedes.
The Bottom Line on Trust: Institutions Can't Count on It
March 8, 2024
The public has soured on government and politics, media and the corporate world. For banks, it will take “all hands on deck,” from “resiliency teams ...
Stress Testing in 2024: Analyzing the Fed’s Newly Released Scenarios
March 1, 2024
The Federal Reserve this year requires banks to consider exploratory scenarios that factor in deposit runs and funding liquidity problems, among ...
How to Take the Stress Out of Stress Testing
March 1, 2024
All banks that are subject to this years’ annual stress test from the Federal Reserve are expected to have sufficient capital to pass, despite the ...
Pros and Cons of Generative AI: A Quantitative Analysis
March 1, 2024
Artificial intelligence is changing the risk modeling landscape. Financial institutions are evaluating whether they can gain an edge through the ...
Do Cryptocurrencies Pose a Macro Threat to the Global Financial System?
February 23, 2024
Digital currencies like bitcoin have made significant inroads among investors and in several countries – but are their risks greater than their ...
Did CECL and IFRS 9 Fix the Procyclicality Problem?
February 23, 2024
Modern reporting standards for expected credit losses are, as anticipated, more volatile than the previous incurred-loss approach. But the key ...
California Law, Following Europe, Introduces a New Privacy Rights Wrinkle
February 23, 2024
Tips to avoid the emerging risks of “dark patterns” and preserve informed consent through customer interfaces.
The Corporate Transparency Act Puts Spotlight on Beneficial Ownership Information
February 16, 2024
New AML-related compliance burdens fall on business entities and banks; “disclosing of essential information for the greater good” of corporate and ...
Coming Up Short: Risk Management Deficiencies of the UN's Interim Report on AI Governance
February 16, 2024
The United Nations' proposed governance of artificial intelligence is welcome, but it lacks risk management necessities, and a more structured and ...
Bank of America Quantitative Strategies Leader Is Named Financial Engineer of the Year
February 16, 2024
International Association for Quantitative Finance honors Leif Andersen, also affiliated with NYU and Carnegie Mellon, as "both an academic and a ...
Carbon Leakage: What Is It and How Is It Shaping Climate Policy?
February 15, 2024
Carbon leakage poses a significant challenge to global climate change mitigation efforts. Here’s what risk professionals should know about it, as ...
Geopolitical Risk is Spreading Across the Risk Spectrum. Are You Prepared?
February 9, 2024
Whether we’re talking about, say, the Israel-Hamas armed conflict, the ongoing Russia-Ukraine war, or attacks on commercial shipping vessels in the ...
Life Settlements Are Settling In as an Alternative Asset Class
February 9, 2024
As insurance-policy death benefits attract yield-hungry investors, portfolio management requires attention to policyholder longevity, insurer ...
EU Banks Enjoy Success, But Must Stay Vigilant About Emerging Risks
February 9, 2024
European banks have done a fine job of building capital while keeping their risk exposure in check in volatile times. How have they achieved this, ...
Is Institutional-Grade Blockchain Ready for Its Great Leap Forward?
February 2, 2024
Perceiving an inflection point for digital assets, DTCC joins with international peers in a call for order, collaboration and standardization.
Continuity and Resilience: Lessons from 2023 into 2024
February 2, 2024
Geopolitical and other uncertainties are escalating third-party risks for all sectors. More robust and integrated stress and scenario testing become ...
How to Measure and Model the Multi-Layered Threat of Cyber Risk
February 2, 2024
Risk managers working in the cybersecurity arena face the daunting task of identifying, analyzing and evaluating a variety of idiosyncratic risks. To ...
Climate Risk Stress Testing: Agenda 2024
February 1, 2024
Banks, especially in Europe, have key climate-related stress test deliverables to complete in 2024. We highlight some key challenges that will need ...
Have Spot Bitcoin ETFs Changed the Digital-Asset Game?
January 26, 2024
The products approved by the SEC are “step one” in a revolution, says the CEO of BlackRock, an early leader in fund inflows. But many crypto-related ...
Will ChatGPT Break Financial Markets?
January 26, 2024
Generative AI models have the potential to alter the trading landscape significantly. Risk managers have learned lessons from the dramatic impact of ...
Risk Management Forecast for 2024: Defining Trends and Ways to Prepare
January 26, 2024
Amid continuing economic and market uncertainties, conduct regular risk assessments, understand models and their limitations, and be ready to respond ...
Navigating New Principles for Climate-Related Financial Risk Management
January 25, 2024
U.S. banking regulators have issued a new framework for climate-related risk. What are the core principles, and how should financial institutions ...
The Costs of Credit Scores and Data Privacy
January 19, 2024
EU courts have recently granted even more protection to consumers’ data, raising doubts about the future of credit scoring in Europe. While greater ...
Artificial Intelligence Poses Difficult Questions for Corporate Boards. It Can Also Improve How They Work.
January 19, 2024
As with any technological breakthrough, AI carries risks along with payoffs. Both sides of that ledger can benefit from AI-driven governance, ...
Siri, What’s My Stress Scenario?
January 19, 2024
Risk managers are in line to face a myriad of difficult challenges in 2024, ranging from geopolitical tensions to cyber threats to the growing impact ...
New Year's Resolutions for Risk Managers in 2024
January 12, 2024
Finding balance in managing risk and return is extremely challenging, especially during periods of uncertainty fueled by geopolitical tensions, cyber ...
Basis Trades: Treasury Market Lubricant or Systemic Risk?
January 12, 2024
A winning strategy for hedge funds has regulators worried about leverage and financial stability; a “vulnerability worth monitoring,” according to ...
The Risk-Reward of Buy Now, Pay Later
January 12, 2024
BNPL platforms have grown exponentially over the past five years, and may seem like a savior for cash-strapped consumers. However, proper financial ...
Production vs. Consumption: Assessing a Country's Contribution to Climate Change
January 11, 2024
Reaching net-zero emissions has emerged as a primary objective for nations around the world. But how should we measure their contribution to climate ...
5 Risk Predictions for 2024
January 5, 2024
Inflation, commercial real estate volatility, cyberattacks, geopolitical threats, social unrest, and extreme weather events are among the risks that ...
Government-Owned, Consumer-Centered Banks Gain Limited Traction, but the Idea Is Alive
January 5, 2024
Although only one U.S. state has opened a public bank, advocates believe the model can benefit localities financially while reaching customers not ...
How Harnessing the Power of AI Can Revolutionize Alternative Lending
January 5, 2024
New and enhanced analytics, personalization and decision support are well suited to the needs of the SME market.
Structural Changes Loom in Securities Finance
December 22, 2023
Changing market dynamics accompany questions about future governance of the EquiLend platform, following a settlement of antitrust charges
AI Risk: The Inefficiencies of Existing Oversight, and What FRMs Can Learn From Science Fiction
December 22, 2023
Regulations and government guidelines for AI are flawed and do not address the key risks presented by this complex, fast-evolving technology. ...
The FHFA's New Vision: A Wonderful Life for the Federal Home Loan Banks?
December 15, 2023
FHLBanks have moved away from their intended mission as community-oriented mortgage lenders and are therefore in need of a revamp. The Federal ...
Financial Firms Pay Steep Price for WhatsApp and Other 'Off-Channel' Messaging
December 15, 2023
Will upwards of $2 billion in regulatory penalties deter further violations of communication-retention rules? Solutions may require attention to ...
Unveiling the Hidden Threat of Payment Fraud
December 15, 2023
Operational challenges and reputational damage can compound the financial costs.
How Generative AI Can Solve a Traditional Risk Modeling Problem
December 8, 2023
Financial risk modelers are now using generative AI to work more efficiently. Though the technology is still not yet fully developed, modelers can ...
Will Increased Complexity Save Scenario Analysis?
December 8, 2023
Banks are now under pressure to deploy more explanatory scenarios that expand the range of tail risks they consider. The hope is that this approach ...
Asset Exchange Connects a Network of Lenders to Customized Advice and Analytics
December 8, 2023
PNC Capital Markets seeks to stand out from the loan-platform crowd.
The Business Impact of Supply Chain Sustainability
December 7, 2023
Can reining in third-party emissions help strengthen the bottom lines of today’s top businesses?
Navigating and Managing Geopolitical Risks
December 1, 2023
Fueled by the ongoing Israel/Hamas and Russia/Ukraine conflicts, headline-grabbing geopolitical threats are a source of significant concern for ...
Updated U.S. Cyber Guidelines Place Emphasis on Risk Governance
December 1, 2023
The 10-year-old NIST framework gets a makeover that draws from and expands applicability of proven practices in financial services and other critical ...
Corporates Awake to Bank-Counterparty Risk
December 1, 2023
Treasurers reacted to this year’s banking turmoil with more – and more sophisticated – metrics to keep watch on their banking relationships.
Climate Transition Planning: A Guide for Risk Professionals
November 23, 2023
As the world moves toward net zero, companies need to plan their transition to a lower carbon future.
Redefining Financial Stability: Pros and Cons of New Regulatory Proposals
November 22, 2023
The Basel III Endgame and the Fundamental Review of the Trading Book are among the upcoming regulations that have unique limitations and advantages.
Combating Cybercrime in the Age of Remote Work
November 22, 2023
Despite familiarity with bigger attack surfaces and less-secure perimeters, threat awareness and deterrence require continuing and constant vigilance.
Operational Risk Capital Proposal: Time to Hit the Pause Button
November 17, 2023
The so-called Basel III Endgame could lead to significant amendments in operational loss estimation at big banks.
The 2023 Banking Turmoil: A Middle-of-the-Road Crisis
November 17, 2023
This year’s regional banking fiascoes in the U.S. offered valuable lessons for risk managers, but do they measure up with the 2008 global financial ...
5 Ways to Improve Model Risk Management
November 17, 2023
How risk assessment, data management, governance and AI can contribute to continuous improvement.
Real Estate Risks Are Global, but Impacts and Perceptions Vary
November 10, 2023
China’s residential and commercial markets are top concerns in a GARP Benchmarking Initiative survey. In the U.S., multifamily and some office types ...
Can Banks Reliably Estimate Credit Losses?
November 10, 2023
Financial institutions have improved their ability to forecast losses thanks to better models, impactful regulations and voluminous, higher-quality ...
To Combat Money Laundering, AI Tools Come Off the Shelf and In the Cloud
November 10, 2023
Weapons for fighting financial crime and fraud are increasingly powerful and accessible, but they must be well orchestrated to be effective.
The Constantly Evolving Cyber Threat Landscape: Current Lessons for CISOs
November 3, 2023
Because the risks are growing more in volume than in complexity, existing defenses can usually suffice. Here is a look at some of the more novel ...
Has ESG Gone Off the Rails?
November 3, 2023
“When regulation starts to become coercive, then there is a problem,” an investment manager writes.
The Impact of Generative AI on Risk Careers
November 3, 2023
The latest innovation in AI has already made inroads in risk monitoring, measurement and analysis. How will GenAI change the risk landscape, and will ...
Reducing Emissions: The Devil in the Details
November 2, 2023
Getting to net-zero by 2050 is essential – but how it’s done matters too.
Responses Are Mixed to the SEC’s Treasury Central Clearing Proposal
October 27, 2023
Cost-benefit questions persist despite potential for significant risk reduction
The Road to Better Model Risk Management
October 27, 2023
Firms new to the discipline have their work cut out as regulators bring attention and clarity to model risk. The experience of forward-thinking early ...
Harm Reduction: A Strategy to Mitigate the Risks of AI
October 27, 2023
AI advancements have brought a lot of potential benefits to the financial system, but also come with risks. To minimize the impact of negative ...
Climate Trends, Narratives, Shocks and Credit Risk Stress Scenarios
October 26, 2023
Credit risk measurement still doesn’t adequately capture the effects of climate change. Why is that, and what can be done to improve the modelling?
Investment Managers Keep Faith in Emerging Markets
October 20, 2023
“Many EMs are well positioned to have economic growth acceleration in 2024 and beyond,” says one portfolio manager. “We invest in companies, not ...
Could Speedier High-Frequency Trading Prompt the Next Market Meltdown?
October 20, 2023
Traders and market makers are pushing hard for faster HFT, claiming it will result in more liquid and more efficient markets. But a proposed speed ...
After Temporary Dislocations, Insurance-Linked Securities Are Breaking Records
October 20, 2023
Anticipated cyber catastrophe bonds and innovative deal structures are expected to fuel further growth
How to Reduce Bank Failures: A Novel Approach
October 13, 2023
Poor risk governance, culture and infrastructure have been responsible for many financial meltdowns, including this year’s SVB and Signature Bank ...
Generative AI: The Next Wave in Credit Assessment?
October 13, 2023
Banks must now consider how the latest advancement in AI can help risk analysts measure consumer and corporate credit.
Addressing Data Management Challenges with Emerging Technologies and Industry Collaboration
October 13, 2023
Along with AI, cloud and other advances, it will take a cultural shift to overcome the obstacles of overlapping standards, legacy-system complexities ...
Transforming Risk Management with Generative AI
October 6, 2023
The next generation of AI is not flawless, but could very well be used to identify and rank threats, democratize data and analytics, and improve ...
How Regulatory Backstop Measures Can Lead to Worse Risk Management
October 6, 2023
Whenever supervisors do not feel sure about risk measurement, they add conservatism. But the probability of default backstop the ECB has added to ECL ...
Unmasking Gray Actors: How to Spot and Stop a Costly Wave of Fraudulent Behavior
October 6, 2023
Subtle deceptions hook unsuspecting victims; risk mitigation measures can be mobilized.
Amid Controversy over Capital Requirements, Top-Rated Structured Bonds Offer Respite
September 29, 2023
The biggest U.S. banks are wary of proposed Basel III impacts, but securitization risk weights could drop
Balanced Risk Modeling: How to Better Prepare for Shocks
September 29, 2023
Risk managers need to worry about both idiosyncratic outcomes and systemic risks. An integrated, comprehensive modeling approach is the only way to ...
Global Investment Performance Standards: After 25 Years, Room to Grow, and Gaps to Close
September 29, 2023
More smaller and alternative funds are in the fold as consultants and outsourcers offer to support compliance
The Reawakening of Blockchain – and Its Impact on Risk Management
September 22, 2023
A series of large blockchain initiatives from the like of JPMorgan Chase and the LSE have recently grabbed headlines, once again placing the ...
Should Internal Bank Models Be Used for Capital?
September 22, 2023
Large U.S. banks may be forced to employ standardized, regulator-driven models to calculate capital in the future. But, for a variety of reasons, ...
Behavioral Biometrics: A Safe Middle Ground for the Fight Against Financial Fraud?
September 22, 2023
An advanced identity verification tool is reinforcing but not replacing legacy methods
Inside The Complex Landscape of Carbon Prices
September 21, 2023
There are at least five different kinds of carbon prices. How could they impact your portfolio?
In the Wake of Libor, New AFX Leadership Turns Attention to Growth
September 15, 2023
Regulatory concerns have surfaced, but supporters maintain that credit-sensitive rates including Ameribor have withstood market stresses and proved ...
NBFIs: Risks and Opportunities From Nonbanks in the Financial System
September 15, 2023
Conventional banks face major risks from the explosive growth of so-called shadow banks, but these institutions also offer hope to up-and-coming risk ...
Management Liability: Four Ways to Reduce the Risk
September 15, 2023
The right preparatory steps can effectively insure against losses and benefit risk management overall
India: A Case Study in Climate Mitigation and Adaptation
September 14, 2023
This article explores the difficult trade-offs that need to be made between the competing claims of climate mitigation, adaptation, and economic ...
Quantum Computing: Breakthrough Performance Comes with High-Stakes Perils
September 8, 2023
Although the fully realized technology is years away, it is advancing incrementally, and risks are coming into focus
SVB and Signature Bank Fallout: Why We Need a Different Approach to Regional Bank Regulation and Risk Management
September 8, 2023
Regulators seem to once again be focused on increasing capital and liquidity requirements for banks of a certain size in response to recent fiascoes ...
An Overlooked Element of Executive Safety: Data Privacy
September 8, 2023
Proliferation of personal data puts company leaders at risk. Security technologies can protect them.
The Impact of Evolving Central Bank Digital Currencies on Banks and Risk Management
September 1, 2023
Digital currencies developed by central banks may be the wave of the future, but still face significant barriers to entry. Are CBDCs a threat to ...
How Generative AI Will Disrupt Credit Risk Modeling
September 1, 2023
Improved coding of PD, LGD and EAD models is one of the potential benefits of this innovative technology. How does this work, and what else can ...
Systemic Vulnerabilities Underscore the Need for a Data Standard
September 1, 2023
Legal Entity Identifiers, although still a work in progress, point the way toward real-time risk analysis and contagion alerts
Reassessing the Current State of Bank Safety
August 25, 2023
What level of danger are banks now facing? In the wake of a series of extreme events, do they need to adopt complex, nonlinear models for tail risk ...
Exhaustive Scenario Analysis: What Banks Can Learn From the Airline Industry’s Flight Simulations
August 25, 2023
Flying is hundreds of times safer than driving, thanks at least partly to comprehensive simulations performed by airline pilots. Banks that want to ...
Large Language Models, Security and Privacy
August 25, 2023
Effective corporate culture and governance practices are paramount, a top information security executive writes.
Insurance Regulation Could Stymie Financing for Risky Companies
August 18, 2023
Opponents say a higher capital charge will affect availability and returns on collateralized loan obligations
Is Honesty Really the Best Policy in Risk Management?
August 18, 2023
The truth, contrary to the Bible, does not always set you free – particularly if you are a risk manager who does not want to block innovation. What ...
Building a Healthy Risk Culture: A Q&A With Clifford Rossi
August 18, 2023
Banks with effective risk cultures are less prone to errors and more equipped to handle shocks. But what specific steps do they need to take to ...
Building a Healthy Risk Culture: A Q&A With Clifford Rossi
August 18, 2023
Banks with effective risk cultures are less prone to errors and more equipped to handle shocks. But what specific steps do they need to take to ...
A CRO on a Mission to Help Build a Resilient Culture
August 11, 2023
For BNY Mellon’s Senthil Kumar, “intelligent risk-taking” is at the heart of holistic risk management
Coping with Inflation and Liquidity Risk – and Their Knock-on Effects
August 11, 2023
Consistent risk modeling and holistic analysis of inflation’s impacts are keys to insurers’ approach
Banks Have a Better Grip on Online Fraud, but the Threats Persist
August 11, 2023
Digitization brings both opportunity and vulnerability. Beware social engineering and email compromise.
Four Hurdles of the EU’s Digital Operational Resilience Act
August 4, 2023
Stringent requirements for technological reliability, cybersecurity, business continuity and vendor risk management take effect in January 2025. ...
Traditional vs. Fixed Analysis: Weighing the Pros and Cons of An Alternative Approach to Scenario Design
August 4, 2023
For decades, to better manage uncertainty and make more accurate forecasts of losses, financial institutions have relied on a multi-scenario strategy ...
How Risk Managers Should Define a Crisis, and Why It Matters: A Q&A With Dr. René Stulz
August 4, 2023
The global financial services landscape has been significantly altered by unpredictable – and sometimes unprecedented – events over the past 15 ...
New Climate Regulations: What to Know and What They Are Trying to Achieve
August 3, 2023
A plethora of climate-related, real economy regulation has been released in the last few years. What are the main themes, and what are these policies ...
Remembering Harry Markowitz: A Risk Management Pioneer and Beloved Mentor
July 31, 2023
The risk community looks back on the finance legend and Nobel Prize winner, whose creation of Modern Portfolio Theory (MPT) transformed wealth ...
Does Visualization Improve the Explainability of ML Models?
July 28, 2023
Machine-learning models are being used by more and more financial institutions to improve the accuracy of credit risk forecasts. Sophisticated ...
Risk Management and the Tangled Web of Financial Control, Accounting and Technology
July 28, 2023
Aided by blockchain, financial control professionals are making impressive advancements in risk management. What are the differences between ...
What to Know About U.S. Regulators’ Third-Party Risk Management Guidance
July 28, 2023
Defining expectations for risk-based approaches and governance, the agencies are “more prescriptive and clarifying” than in their 2021 proposal
CECL and IFRS 9: Superior Risk Management or Psychological Ploy?
July 21, 2023
Projecting expected credit losses is tricky, partly because scenario analysis is imprecise and partly because recessions do not necessarily yield ...
Moving Up on the Compliance Agenda: The EU’s EMIR Refit
July 21, 2023
Market infrastructure rules affect derivatives counterparties and trade repositories, stress data quality and standardization
Collateral Management Technology Is Boosting Efficiency and Adding Strategic Value
July 21, 2023
Systems are rising to the post-Dodd-Frank challenges of operational and transactional complexity
Oil and Gas Business Models – Resilient or Risky?
July 20, 2023
Despite a continued commitment to fossil fuel production, oil and gas companies contend that their business models are Paris-aligned. How is this ...
Extensive Cybersecurity Rules Are Pending at the SEC
July 14, 2023
Critics complain about new layers of complexity and the unintended consequence of information leakage
The Commercial Real Estate Dilemma and Its Impact on Bank Risk Management
July 14, 2023
Banks that are heavily invested in the troubled CRE market now face a variety of complex risks, from the remote work trend to rising inflation to the ...
Integrated Third-Party Risk Management: Collaborative, Coordinated and Continuous
July 14, 2023
Recent disruptive events underscore the importance of holistic, proactive approaches; vendor assessments and due diligence; and “every employee’s ...
Why Climate Risks Present Unique Challenges for FMIs
July 13, 2023
Due to the role financial market infrastructures (FMIs) play in the global markets, their exposure to climate-related risks is unlike other market ...
A Midyear (Global) Report Card: Economic Trends, and Ongoing and Emerging Risks
July 7, 2023
Economies across the world have bucked predictions and avoided recessions this year, but significant risks remain. How do U.S. economic developments ...
Held-to-Maturity Accounting Revisited
July 7, 2023
A fair value approach may have sounded earlier alarms of Silicon Valley Bank’s decline, but a change in the reporting standard isn’t imminent
How to Better Manage Fraud in a Post-Pandemic World
July 7, 2023
In the wake of the COVID-19 crisis, internal fraud is on the rise at banks – but there are strategies they can employ to minimize this risk.
How to Improve Risk Oversight at Banks: A Three-Step Checklist
June 30, 2023
Boards of directors at failed banks knew little about their firms’ risk exposures. What steps can bank risk committees now take, and what information ...
Read ArticleAn Appeals Court Decision Could Alter the Fundamentals of Syndicated Leveraged Loans
June 30, 2023
Lenders’ advocates warn of market chaos if the loans have to be treated as securities
In a Highly Connected World, Disease Is Not Isolated from Other Risks
June 30, 2023
Filling the gaps in hygiene research is critical to risk management and business resilience
ESG Explained: What It Is and Why It Matters
June 30, 2023
ESG is an increasingly hot topic, but why and how has it become so important? This article offers an up-to-date look at these issues, highlighting ...
Risk Management and Radical Uncertainty
June 23, 2023
Extremely rare tail-risk events simply cannot be modeled. But that doesn’t mean traditional models that rely on historical data do not have worth.
A Brave (and Risky) New World: The Gig Economy Comes for Hedge Funds
June 23, 2023
The most rapidly growing segment of the hedge fund industry is a gig business model that offers more freedom to managers and investors – and could ...
AI Regulation Is On the Way – But Not So Fast
June 23, 2023
The financial industry faces as much uncertainty and need to prepare as any other. Its regulatory experience may prove to be an asset.
After the Reports and Recriminations, What Is Left to Learn About the 2023 Bank Failures?
June 16, 2023
Lawmakers, academics and others have unanswered questions. A Federal Reserve governor, for one, calls for further inquiries.
Foundation IRB: An Inferior Option for Credit Risk Modeling?
June 16, 2023
For certain asset classes, Basel III prohibits the use of the advanced IRB approach for credit risk measurement, favoring instead a foundation ...
Facing the Reality of Real-Time Payments: Are Anti-Fraud Protections Up to Speed?
June 16, 2023
FedNow, a milestone for the U.S., launches in July. Artificial intelligence will be on guard.
The Fed’s Report on Silicon Valley Bank: Key Risk Takeaways
June 9, 2023
There was plenty of blame to go around for the demise of SVB, but regulatory findings show that banks require more proactive boards and need to ...
Managing the Risk of Large Language Models Like ChatGPT
June 9, 2023
The fast-moving new technology requires risk assessments and policies that impose necessary control without stifling innovation
Risk Management Specialist vs. Generalist: Which Is Right for You?
June 9, 2023
Aspiring FRMs and junior-level risk managers must choose between two career paths. There is no right answer, but there are pros and cons a young risk ...
Understanding How Biodiversity and Climate Change Are Interconnected
June 6, 2023
Biodiversity loss and climate change are often considered as separate challenges. However, they are actually highly interconnected and should be ...
Risk is Everybody’s Business: Moving Toward Integrated Risk Management
June 2, 2023
Risk modelers, accountants and economists must collaborate closely to collect more timely and accurate data, to improve decision making and to enable ...
Read ArticleThe Three Rs of Regulatory Response to Recent Bank Failures
June 2, 2023
Assumptions about financial stability and customer behavior must be reassessed, and technology infrastructure modernized
Securities Lending and Repo Get the Blockchain Treatment
June 2, 2023
Deutsche Börse affiliates are leading adopters, but volumes have yet to take off
A Lesson From SVB: Don't Forget Risk Management Fundamentals
June 1, 2023
Recent bank collapses have increased the demand for competent risk management. What have we learned about the value of risk awareness, and what ...
Risk Modeling: What Can We Learn from the Rigor of Academics?
May 26, 2023
Financial risk models have repeatedly been found wanting over the past few years, partly because model developers are limited by regulations. But ...
Risk Management and Public Key Cryptography
May 26, 2023
Risk managers must consider all risks and make decisions based on complex, voluminous, fast-changing data, all while worrying about timeliness and ...
How Unrealized Losses Weigh on Bank Balance Sheets
May 26, 2023
Mortgage-backed securities plus other credit exposure approach total bank equity capital, according to one estimate
Measuring Corporate Culture: It’s Complicated
May 19, 2023
From surveys and questionnaires – the “workhorses of culture research” – to “the explosion of digital trace data” and faster and cheaper ...
Agile Approaches for Credit Risk Modeling: Curse or Blessing?
May 19, 2023
Today, agile model development methodologies are becoming increasingly popular. What are the advantages and pitfalls of these approaches when ...
The Parlous State of ESG
May 19, 2023
Navigating a minefield of ratings, regulations and politicization
4 Key Areas to Know About Climate Change
May 18, 2023
A brief introduction to climate change and four of its key facets: weather, climate, the greenhouse effect, and global warming.
AI’s Inroads in Investment Management
May 12, 2023
Signals are cutting through the noise, but there are limitations still to be overcome
Banks Short – or Long – on Deposits Can Go to the Markets
May 12, 2023
Innovative private-sector platforms can help navigate rough patches, but they’re not designed to rescue banks on the brink
Is There a Need for a Chief Liquidity Officer?
May 12, 2023
The benefits of a new “C” function could outweigh the cost and effort of creating it
Nature: A New Horizon for Risk Professionals?
May 11, 2023
With a growing focus on nature-related risks, where should financial institutions start? In many firms, there is already existing expertise and ...
The Future of DeFi: What It Means for Risk Managers
May 5, 2023
Junior risk practitioners and aspiring FRMs who are interested in building a career in decentralized finance need a blend of intellectual curiosity ...
Ted Lasso’s Guide to Risk Management: Finding Purpose and Meaning
May 5, 2023
How can CROs tap into the full potential of their risk teams, while simultaneously building comprehensive cultures of risk awareness that help ...
Read ArticleFirst Republic Fallout: A Call for More Effective Bank Board Risk Committees
May 2, 2023
The collapse and eventual sale of First Republic was a stark reminder that greater scrutiny of interest rate, liquidity and credit risks is needed to ...
Different, but the Same: What Bank Failures Can Teach
April 28, 2023
Although every crisis is different, financial firms can spot the warning signs – and even predict various risks – if they learn from the past
Stress Testing and Scenario Analysis: The Customization Challenge
April 28, 2023
Recent bank defaults have proved that “one size fits all” regulatory stress tests do not work. Are there practical ways of individualizing prescribed ...
Alternative Data and Credit: The Business Dimension
April 28, 2023
Consumer credit scoring innovations cross over to small-business and startup loans
Lying with Statistics: How Risk Model Selection Contributed to SVB’s Downfall
April 21, 2023
Just how easy is it to manipulate data in a model to suit the preferences of an individual or of bank management? Flaws in the current model ...
Bank Failures and the Need for Better Risk Leadership
April 21, 2023
To prevent future fiascoes, financial institutions must improve their culture and their risk training. It all starts at the top, where the CRO must ...
Financial Crime and Compliance: Responsibility Is Not Just on Banks
April 21, 2023
Lawyers, accountants and other “gatekeepers” must also be accountable
How Extreme Weather Caused by Global Warming Is Driving New Investment Risks
April 19, 2023
Due to improvements in the ability to trace losses from extreme weather events back to emissions, climate-related litigation risks are increasing at ...
Silicon Valley Bank: The Postmortems Came Fast and Furious
April 14, 2023
Managerial failings were in plain sight. As with past crises, remedial playbooks and regulatory actions to rein in risks and avert contagion will be ...
Credit Risk Measurement: Basel III’s External Ratings Dilemma
April 14, 2023
The rollout of Basel III in both Europe and the U.S. is on the horizon, but flaws remain in its requirements for calculating risk-weighted assets. ...
Getting Beyond RCSA: Why Operational Risk Needs a New, Improved Process
April 14, 2023
Risk Control Self-Assessments are, by definition, limited. Dynamic data-driven assessments are a better way.
SVB and Signature Bank: Risk Management Revelations
April 6, 2023
Recent bank collapses can be traced to their narrow-minded approach to stress testing and scenario analysis. What exactly went wrong at these ...
Will the SEC Help Reinvigorate Public Stock Issuance?
April 6, 2023
Countering the rampant growth in private markets, near-term steps may have to be “incremental”
Reimagining the Federal Home Loan Bank System
April 6, 2023
How can we reduce systemic risk and create more competition in the U.S. mortgage secondary market? A pair of GSEs currently dominate this space, but ...
Two Types of Biodiversity Measures to Be Aware of
April 5, 2023
To move beyond identifying the risks associated with biodiversity loss and begin quantifying them, it is essential to understand the different types ...
AI ‘Digital Workers’ Take on AML, Risk and Compliance Tasks
March 31, 2023
Even as the technology brings relief to overstressed departments, human “boots on the ground” remain indispensable
Stress-Testing the Supply Chain for Risk Resiliency
March 31, 2023
An investment-like portfolio management approach, enhanced by real-time ecosystem data sharing
A Lesson From SVB: Don’t Forget Risk Management Fundamentals
March 31, 2023
Recent bank collapses have increased the demand for competent risk management. What have we learned about the value of risk awareness, and what ...
How D&I Can Drive ROI: A Q&A With Amundi's Allen Xiao
March 31, 2023
Why is it important to have an ethnically and culturally diverse risk management team? A deputy CRO shares his viewpoints on the cultural, risk and ...
Would DFAST Have Saved SVB?
March 24, 2023
There is a school of thought in the banking industry that Silicon Valley Bank would not have failed had it been subject to comprehensive stress ...
The Fall of Silicon Valley Bank: A Systemic Risk View
March 24, 2023
Before it was shuttered, how much of a threat did SVB pose to the financial system? Comparing the bank’s systemic risk profile with banks of similar ...
Could SOFR, Under Stress, Hurt Bank Balance Sheets and Lending Capacity?
March 24, 2023
A New York Fed study fleshes out “Main Street” lenders’ critique of the Libor replacement rate
What Is Greenhouse Gas Accounting and Why Is it So Important?
March 23, 2023
Global regulatory and market trends are pressuring firms to disclose their impacts on climate change through a process known as greenhouse gas ...
Due Diligence Is Under Review
March 17, 2023
Litigation and reputational risks arise in the wake of breakdowns in screening processes. Are improved, perhaps more technology-assisted practices on ...
Risk Management Lessons Learned From SVB
March 17, 2023
Now is the time for risk managers to address the critical questions that matter for the banking industry: Was the failure of SVB preventable, what ...
Celebrating Three Years of the Climate Risk Podcast: What Have We Learnt So Far?
March 17, 2023
Today marks the third anniversary of the GARP Climate Risk Podcast. We have learnt a huge amount from talking to a wide range of guests. This article ...
Silicon Valley Bank: A Failure in Risk Management
March 14, 2023
What drove the collapse of SVB? Insufficient board oversight, incomplete modeling and poor liquidity risk management practices were among the key ...
$2 Billion and Counting: The Rise of E-Communications Fines – and How They Can Be Avoided
March 10, 2023
For banks slow to react to the risks, surveillance and control solutions are in reach
When to Change IFRS 9 Scenario Weights for ECL: A Simple Rule
March 10, 2023
Financial institutions in Europe now employ a range of scenario-weighting approaches to estimate IFRS 9-compliant expected credit losses, with little ...
It’s in the Details: Are Spreadsheets Putting Firms at Risk?
March 10, 2023
Mitigating the risks in end-user applications through intelligent automation and digital transformation
Measuring and Modeling Residential Real Estate Risk in Unprecedented Times
March 3, 2023
Risk modelers in the mortgage industry now face significant obstacles, thanks in part to rising interest rates, high inflation, stagnant growth and a ...
Regulators Draw a Line on an Attempted Use of Term SOFR
March 3, 2023
The auto-loan-backed securities market awaits clarification as the mid-year Libor transition deadline approaches
Managing Compliance and Complexity: A GRC Call to Action
March 3, 2023
Seven tips to improve business value along with risk, ESG, business and technology strategy
Managing Liquidity Risk and Funding Costs During a Crisis
February 24, 2023
Liquidity risk can spin out of control amid an extreme event. But financial institutions can take a three-pronged, multi-scenario approach to assess ...
A Defense of Empirical Risk Management
February 24, 2023
Traditional credit risk models have recently come under heavy fire. But there is still value in learning from history, even while modifications are ...
Continuing Complications in Supply-Chain and Third-Party Risks
February 24, 2023
Rapid responses and resilience are essential amid economic and geopolitical disruptions and regulatory challenges
Helyette Geman, of Johns Hopkins and Birkbeck, Is Financial Engineer of the Year
February 17, 2023
“Research across disparate topics” and “extensive career of important contributions” earn IAQF/Northfield honor
The Risk Appetite Dilemma: How to Overcome Obstacles and Enhance Risk-Adjusted Return
February 17, 2023
Risk appetite statements can yield many benefits, but only when they adhere to established risk-tolerance levels and make use of proper metrics that ...
How to Develop Effective Risk Documentation
February 17, 2023
Financial institutions need to account for risks properly as part of enterprise risk management, but what steps can they take to manage documentation?
Treasury Trading Reforms Move Forward and Get Some Pushback
February 10, 2023
As the SEC seeks to bolster resilience, market participants advise caution on specifics
What Do CROs Look for in a Risk Manager?
February 10, 2023
Technical skills are always in demand for job candidates and for risk professionals seeking to climb the corporate ladder, but problem-solving, ...
When Due Diligence Fails: Cautionary Current Events
February 10, 2023
Hard-won lessons from costly missteps
Follow the Sun to Manage Investment Risk
February 3, 2023
“Light exchange” Blue Ocean brings 24/7 equities trading closer to reality
Climate Risk Stress Testing and the Role of Central Banks
February 3, 2023
Proponents and detractors have already weighed in on the Federal Reserve’s news climate scenario analysis exercise, which is designed to help banks ...
Bypassing Legal Reviews and Procedures: An Overlooked Source of Risk?
February 3, 2023
Like risk managers, legal professionals say they can positively impact business results
Under the Hood: Evaluating the Basel Committee’s Self-Analysis of Basel III
January 27, 2023
A new BCBS report states that Basel III reforms have yielded stronger, more resilient banks without any negative side effects. But the analysis ...
Open Banking Is on the Way in the U.S., Accompanied by Risk Concerns
January 27, 2023
While regulations are still pending, data management, privacy and third-party compliance issues are likely to arise
How to Model Forward-Looking Credit Risk
January 27, 2023
During uncertain times, the traditional approach for estimating expected credit losses simply doesn’t work. However, while forecasting ECL is a ...
AI in Banking: Past, Present and Future
January 20, 2023
The growth of artificial intelligence in the financial services industry has been somewhat kept in check by regulators, but risk managers still make ...
Model Risk Management Challenges and Opportunities in a Volatile World: A Q&A with Evan Sekeris
January 20, 2023
In uncertain times marked by rare and extreme events, the obstacles facing risk modelers are steep. But aspiring and early-career FRMs with an ...
Corporate Treasury’s Seat at the Enterprise Risk Management Table
January 20, 2023
Looking past silos to contribute to a holistic view of risk
The Evolution of Risk Management: 25 Years of the FRM Program
January 17, 2023
How does a recovering lawyer with a background in Wall Street derivatives find himself at the center of a global embrace of risk management? As we ...
Does Fed Policy on Reserve Balances Raise Risk of Market Disruption?
January 13, 2023
Research shows a link between intraday reserve shortfalls and interest rate spikes
Reducing Operational Risk with Systems Engineering
January 13, 2023
What are the underlying problems behind the operational failures that have plagued large banks? Should they consider a systems engineering approach ...
How the Cyber Risk Landscape Changed in 2022 – and What’s in Store for 2023
January 13, 2023
Companies recognizing bottom-line impact will spend more on cybersecurity
5 Risk Predictions for 2023
January 6, 2023
In the coming year, we can expect a slowdown in worldwide economies, an increased emphasis on operational resilience, a shift toward simpler and more ...
Growth in Private Markets Attracts Trading Platforms to Serve Them
January 6, 2023
Systems can facilitate price discovery and liquidity, but could too many of them spread the business too thin?
The ‘Quantum Cat’ After the Digital Asset Crash
January 6, 2023
Crypto may be paradoxically alive and dead, with unresolved questions and unfulfilled promise
Cryptos at the Banking Gate: Too Close for Comfort?
December 16, 2022
FTX’s implosion and related fallout have ratcheted up concerns about systemic risk and contagion
Trust Is Being Tested in Uncertain Times
December 16, 2022
The business world needs to better understand and manage it, build reputational resilience “from the inside out”
FTX Fiasco: Risk Management Lessons Learned
December 16, 2022
The failure of the crypto giant has shined a spotlight on the crucial role of CEOs, who must lead the development of comprehensive, engaging risk ...
Climate Scenario Analysis in Financial Firms
December 12, 2022
Read GARP’s scenario analysis deep dive, published as part of the Climate Financial Risk Forum’s (CFRF) 2022 outputs.
Digital Transformation: 5 Things CROs Need to Know
December 9, 2022
To lead their firms’ into the digital era, chief risk officers should place a premium on people, avoid excessive reliance on technology, build ...
Pension-Fund Risk: How to Improve Liquidity Management
December 9, 2022
Recent nonfinancial incidents, including geopolitical conflicts, the pandemic and a supply-chain crisis, have destabilized markets and sent risk ...
Regulators and Innovation: A Reconsideration
December 2, 2022
Financial regulation at its best adapts dynamically to changing market conditions and emerging issues. Technology is posing a crucial test.
Catastrophe Risk Protection: Hurricane Ian Dislocates an Already Challenged Market
December 2, 2022
A cyber cat bond is expected soon, but capital constraints may hinder market growth
To Maximize Artificial Intelligence’s Value, We Have to Let It Do Its Thing. What Could Possibly Go Wrong?
November 23, 2022
Technology subject to real-world laws, contracts and company policies needs elements of human judgment, subject-matter expertise and legal counsel
The Stagnation of Stress Testing: Causes … and Potential Solutions
November 18, 2022
An overreliance on scenarios can limit the effectiveness of stress tests. Why is excessive dependence on scenarios problematic, and, with a recession ...
Distributed Ledgers and Digital ID: A Logical Match for KYC?
November 18, 2022
Identity verification and authentication are key to electronic commerce and the further digitalization of financial services and other businesses, ...
Operational Resilience Through Supply Chain and Business Process Mapping
November 11, 2022
A discipline for navigating the complexities of concurrent and cascading crises
Transitioning Veterans: Could a Military Background Jumpstart a Career in Risk Management?
November 11, 2022
When a military member approaches the transition to civilian life, he or she isn't your average career-changer. Whether it's a resume full of job ...
Risk and Compliance Disruptors: Innovative Startups Specialize in Automation and Acceleration
November 4, 2022
Entrepreneur-led Themis reinvents workflows; Debbie helps with debt management; Cable combats financial crime
Economic Misery and Bank Financial Performance
October 28, 2022
Current risk models don’t have sufficient data to account for today’s volatile markets. What’s the true impact of factors like unemployment and ...
Coinbase’s Institutional Flip Side
October 28, 2022
Hurt by exposure to retail crypto trading, the exchange has a growing prime brokerage and alliances with BlackRock’s Aladdin and other platforms
Inflation, Dollar, Other Pressures Add Up to Debt Distress
October 21, 2022
Sovereign debt restructurings are urgently needed, the IMF says; a UN agency sees many developing countries edging toward default
Stress Testing Integration: How to Combine Capital and Liquidity
October 21, 2022
Though the importance of integration is now widely understood by financial institutions, stress testing of capital and liquidity is still typically ...
The Expected Credit Losses Dilemma: Weighting IFRS 9’s “SICR”
October 21, 2022
Under IFRS 9, European banks today face a steep increase in their loan-loss provisions if it is determined at the time of financial reporting that ...
Buy-Now-Pay-Later and Alternative Data Bring Disruption to Retail Credit
October 14, 2022
Fast-growing fintechs contend with a credit cycle as CFPB eyes a rulemaking on consumer data rights
Risk Careers: Trends and Key Skills in Demand in a Topsy-Turvy World
October 14, 2022
In a sea of volatility and unpredictability, what does the current job market look like for aspiring FRMs and early-career risk practitioners?
Asset Managers Who Prepare for Increased Transparency on DEI May See Big Returns
October 14, 2022
Getting out ahead of mandatory standards can bring organizational improvements and boost assets under management
As Crypto Winter Lingers, Digital Custodians Fill Senior Posts
October 7, 2022
Strategic moves by trust companies, Nasdaq and others prioritize safety of assets and institutional participation
The Risk Matrix Approach: Strengths and Limitations
October 7, 2022
The RMA is an effective and intuitive technique used by risk managers to prioritize threats to their organization in a graphic manner – but it’s not ...
Beyond Deepfakes: Synthetic Fraud’s Next Alarming Evolution
September 30, 2022
Artificial intelligence powers potentially more pervasive shallowfakes – and holds a key to solutions
Are CECL and IFRS 9 Reasonable and Supportable?
September 23, 2022
Recent events, including the pandemic, have raised questions about whether the forward-looking accounting standards that are now in place for credit ...
The Ethereum Merge: A Smoother On-Ramp for Institutional Finance?
September 23, 2022
Energy-efficient blockchain may be more hospitable to ESG-minded investors; crypto market risks still loom large
A Call to Arms: Incorporating Extreme Events into Financial Risk Models
September 16, 2022
Recent nonfinancial incidents, including geopolitical conflicts, the pandemic and a supply-chain crisis, have destabilized markets and sent risk ...
Uncleared Margin Rules Reach Final Phase, but the PRA Has Questions
September 16, 2022
U.K. regulator seeks assurances about the adequacy of initial margin calculations; ISDA defends its standard model
SEC Penalizes a Chief Compliance Officer, Putting Spotlight on Personal Liability
September 16, 2022
CCOs and other executives await regulatory clarity on potential financial exposure
Model Validation: Dissecting the Boundaries of a Rules-Based World
September 9, 2022
The European Banking Authority is seeking feedback from regional supervisors and banks about a handbook it has created for validation of IRB models ...
Fintech Innovation: What Does It Mean for FRMs?
September 9, 2022
Regulatory efforts are being outpaced by the progress being made by financial technology companies. How will the growth of fintechs impact the ...
The 'Rebranded' Mission for Legal Entity Identifiers
September 9, 2022
LEI governing body sets digital-commerce goals beyond original focus on financial markets
Risk Management and the Rise of the Green Taxonomy
September 8, 2022
Policy makers across multiple jurisdictions have been developing taxonomies, which aim to define what is “green”. But how do they fit in risk ...
The Rise of Low Code: A Productivity Breakthrough with Caution Flags
September 2, 2022
As major banks and others empower “citizen developers,” operational risks and “shadow IT” need vigilance
Decoding Country Perils: The Nature and Causes of the Risk of Nations
September 2, 2022
What are the best indicators of short- and long-term country risk, and what steps can firms take to identify, assess and manage this multi-layered ...
Will the ‘Systemically Important’ Club Become Less Exclusive?
August 19, 2022
A proposal to bolster cybersecurity would extend the designation into critical-infrastructure sectors outside of financial services, but banking ...
Financial Infrastructure at a Systemic Crossroads
August 19, 2022
Disruption is the enemy, business continuity is the mission, and operational resilience and uptime are strategic imperatives for risk professionals ...
Crashing with Crypto: Coinbase as Case Study
August 12, 2022
Risk and reputational flaws are cautionary lesson for fintechs and other innovators
Economic Capital: The Power of Diversification
August 12, 2022
As we speed toward the January 2023 deadline for Basel III implementation, the calculation of economic capital has become more important than ever. ...
Machine Learning and Risk Management: A Q&A with Professor John Hull
August 5, 2022
Scenario Analysis: Assessing the Quality of the Journey
July 29, 2022
Embedded Applications: New Revenue and New Risks for Banks
July 22, 2022
U.S. Seeks Expert Insights on Artificial Intelligence
July 15, 2022
Model Risk Management Lessons Learned: Tracing Issues from the Pandemic to the Great Recession
July 8, 2022
How to Use ERM, ML and Scenario Analysis to Advance Your Risk Career
July 1, 2022
Getting Schooled on Risk: Graduate Programs Cultivate Talent for the Times
June 24, 2022
Using Benchmarking to Assess the Plausibility of Climate Scenario Analysis
June 21, 2022
How can you judge the reasonableness of modelled scenario analysis outputs if the scenario is one that you’ve never experienced? This is a dilemma ...
SEC Rule Has Fund Firms Grappling with a VaR Mandate
June 17, 2022
How to Improve Cyber Resilience: A Q&A with the OCC’s Patrick Kelly
June 10, 2022
Consumer Outlook: Continued Growth, or Putting on the Brakes?
June 10, 2022
U.S. Law and Global Challenges Reshape AML Compliance
June 3, 2022
FASB Update Facilitates Hedging of Fixed-Income Risk
May 27, 2022
New guidance is well timed for rising interest rates
How to Manage Balance-Sheet Risk in Volatile Times
May 27, 2022
Given the looming prospect of a recession, it’s critical for financial institutions to strengthen their balance sheets. To meet this objective, firms ...
Stress Testing Uncertainty: What Does It Mean for FRMs?
May 20, 2022
Banks, of course, need to ensure that they have enough capital to cover their risks – but, thanks to the pandemic and the resultant ...
Model Validation for Credit Risk: A Critical Deficiency in the Jeffreys Test
May 13, 2022
Anchorage Digital Bank Found Deficient in Anti-Money Laundering Compliance
May 13, 2022
Engineering a Diverse Workplace: Edward Jones’ CRO Is Determined to ‘Be the Difference’
May 6, 2022
Understanding the Physical Risks Associated with Climate Change
April 27, 2022
Climate-related financial risks are the financial risks linked to climate change. These are typically split into two broad categories: physical and ...
The 4 Main Drivers of Transition Risk, and Why the Risks Are Increasing
April 12, 2022
Climate-related financial risks are the financial risks linked to climate change. These are typically split into two broad categories: physical and ...
Carbon Quotient: Managing the Financial Risks of Net Zero
April 5, 2022
The effects of climate change and the transition to a low carbon economy present emerging financial risks. These physical and transition risks ...
Climate Financial Regulation: What is on the Horizon?
March 29, 2022
Supervisors in the EU, the UK and across the world have intensified their regulation of the financial risks resulting from climate change, forcing ...
5 Digital Risk Management Tools Every FRM Should Know About
March 24, 2022
Discover five of the most important risk management tools for financial risk managers to understand and utilize.
Common Risk Management Interview Questions and Tips for Success
March 10, 2022
Anticipating risk management interview questions can help you land the job. Here are some common questions to consider.
What Does a Risk Manager Do?
February 18, 2022
Risk manager's help prepare for uncertainties, minimize threats and mitigate losses. To find out what risk managers do in their day-to-day work read ...
5 Trending Risk Management Jobs that Are Hiring Now
December 7, 2021
Which types of roles are hiring, and what does the current career landscape look like? Here are five trending jobs that are hiring now.
Making Sense of COP26: a Short Guide to Reaching Net Zero
November 1, 2021
As COP26 kicks off in Glasgow, reaching net zero is set to be top of the global agenda. Get acquainted with the why, when and how of reaching net ...
Climate Scenario Analysis Practices in Financial Firms
October 25, 2021
Read GARP’s scenario analysis deep dive, published as part of the Climate Financial Risk Forum’s (CFRF) 2021 outputs.
September 2021 Webcast Q&A: Climate Risk Modeling – Practical Insights and Guidance
October 21, 2021
Oliver Marchand, Global Head of ESG Research and Models at MSCI, answers your questions about the uses and limitations of climate risk modeling at ...
Nature Loss and Financial Risk: Global Insights From the WWF
August 6, 2021
Learn about nature loss, its interconnections with climate change, and how it is creating significant risks for business and finance.
Preparing for a Career in Fintech: A Q&A with Professor Michael Imerman
July 14, 2021
If you're interested in financial risk management, you're aware that the financial services landscape has been significantly altered by the emergence ...
Why Individuals Are a Crucial Part of Solutions to the Climate Crisis
June 11, 2021
The transition to net zero places demands on all stakeholders, but what exactly is our role as individuals?
Gaining Perspective on Climate: Financial Firms Should Understand Their Focus When Assessing Risk
May 24, 2021
Looking at the impact of the climate on your firm or the impact of your firm on the climate?
The ABCs of ESG
May 10, 2021
ESG is an increasingly hot topic, but why and how has it become so important? And how does climate risk fit in?
Sustainable Bonds: Understanding This Growth Area
April 12, 2021
There are four main categories of sustainable bonds: green, social, sustainability, and sustainability linked. What are they? How do they relate to ...
A Short History of Climate Regulations and the Outlook on What Is To Come
March 31, 2021
2021 is a significant year for climate change
Biden’s First 100 Days: What Can We Expect on Climate?
March 17, 2021
The Biden administration has made climate change a key policy priority with a host of high profile announcements. Coupled with regulatory changes, it ...
Climate Risk Management Begins to Drive Investment Decisions
February 8, 2021
Investing in resilience is imperative to addressing climate change, and may result in lower financing costs
Managing Climate Risk in the U.S. Financial System
October 20, 2020
A new report links climate change with financial risk and calls for carbon pricing, incentives, and regulation
The Impact of Climate Risks on Practices at Financial Institutions and GARP’s Climate Risk Survey 2020
October 19, 2020
Though firms may realize they need to fortify themselves to respond to future climate risks, many lack the roadmap to get there.
Asian Regulators Tackle Environmental Risks
September 14, 2020
New regulatory guidelines will have a profound effect on financial institutions' decision-making
Hotter, sooner: A landmark effort refines — and raises — the warming outlook
September 9, 2020
Improved climate model narrows prediction uncertainty and raises the odds of serious climate impacts from global warming
Renewables Forge Ahead in Asia-Pacific Region
September 3, 2020
Favorable economics amid rising energy demand give wind and solar an edge
Is There a Link Between Climate Change and Global Pandemics?
August 18, 2020
Is there a connection between climate change and pandemics? The answer could help us battle both.
Plastics and the Planet: Who Will Bear the Costs?
July 17, 2020
As one of the supposedly great 20th century innovations threatens the environment and public health in the 21st, accountability issues and litigation ...
Climate Scenario Analysis: Stress Testing the Future
July 2, 2020
The systemic risks of climate change are becoming more apparent to regulators. As a result, they are increasingly looking to stress testing and ...
A Decade of Growth Expected in Off-Grid Energy
April 17, 2020
Favorable solar and storage economics address emerging-market demands with institutional support
It’s Time to Start Managing the Complexities of Climate Financial Risk
February 28, 2020
Financial institutions are under intense regulatory and investor pressure to account for the risks of climate change. What steps can they take to ...
Europe’s Sustainable-Finance Action Plan Gets U.S. Exposure
November 27, 2019
EU official cites investment, risk and disclosure objectives in SIFMA annual meeting presentation; ECB’s Lagarde calls for “more digital and greener” ...
How Will Climate Change Impact Banks?
November 15, 2019
Climate change is likely to both disrupt the financial services industry and yield opportunities for it. To develop effective climate risk stress ...
Read ArticleClimate Risk Reality: A Wake-Up Call for Risk Managers
November 1, 2019
The shift to a low-carbon economy has been set in motion, and banks are now facing clear physical and transition risks. What do these risks entail, ...
Banks Rally Behind UN Sustainability Campaign
October 1, 2019
"Principles for Responsible Banking" has 130 signatories from 49 countries; "shareholders, clients and employees increasingly want this," a CEO says
Can the Financial Industry Make Us Climate-Resilient?
September 27, 2019
Investing now is "imperative from the perspective of risk management," say the authors of a Global Commission on Adaptation report on climate-change ...
Global Warming Tops a Ranking of Extreme Risks
September 24, 2019
Non-financial threats loom larger, relative to economic or banking worries, according to the Thinking Ahead Institute
ESG: Risks, Opportunities and Benefits
July 26, 2019
Extreme weather events, data fraud and other risks related to environmental, social and governance issues are among the largest threats now facing ...
The Evolution of Climate Risk Management in Financial Services
June 28, 2019
Though climate risk management is still in its early stages, financial institutions are making progress in areas like governance and strategy. While ...