Skip to content
Featured Column

Risk Weighted

By: Tony Hughes

Topical perspectives on risk analytics, regulation, credit loss forecasting, traditional risk modeling and AI methodologies.

 

Tony-Hughes-500x500
Article

To Model or Not to Model?

May 16, 2025

Banks that choose to eschew models in favor of human intuition run a big risk. What are the most important elements of model development, and why are ...

Read Article
Article

The Place for Generative AI in Risk Management

March 14, 2025

What are the pros and cons of the next wave of AI? Though technology like ChatGPT is flawed and must always be validated, it is proving its worth in ...

Read Article
Article

The Ultimate Model Risk: Lawsuit Could Prompt Big Changes to the Federal Reserve’s Stress Test

February 2, 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, ...

Read Article
Article

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?

Read Article
Article

The Art of Buying and Selling Risk Analytics

October 11, 2024

How can consultants or third-party vendors of analytics separate themselves from the pack? And how are banks evaluating and comparing these external ...

Read Article
Article

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 save banks time and money, and perhaps mitigate some risk. But ...

Read Article
Article

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 ...

Read Article
Article

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, ...

Read Article
Article

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 ...

Read Article
Article

The Rise of Conjectural Risk Management

May 17, 2024

Today, stress testing forecasts and ECL calculations are heavily reliant on guesswork scenarios that largely forgo empirical data. How has scenario ...

Read Article