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The costs of artificial intelligence are rising. It’s not only the investments in business transformation and Big Tech companies’ capital spending, now climbing into trillions of dollars. AI is also...
May 2, 2025 | By David Weldon
The most volatile risk factor of 2025 has been tariffs, and technology has arguably been the sector most impacted. Aaron Brown While the tariff policy changes we’ve seen under the Trump...
May 2, 2025 | By Aaron Brown
The list of projects on a Chainlink blog page could have come off of an international banking and capital markets directory. There are names of infrastructure operators (Swift, Euroclear), banks...
April 4, 2025 | By Michael Shashoua
If there is one certainty about information security, it is that there are no silver bullets. Any set of solutions – from access controls to firewalls to data encryption – can be highly effective....
March 7, 2025 | By David Weldon
In an era marked by increasing skepticism and mistrust in public institutions, innovative solutions to restore faith in government have never been more needed. As trust continues to erode,...
February 21, 2025 | By Anthony Ilukwe
Luca Pacioli (1445–1517), a Renaissance polymath and close friend of Leonardo da Vinci, is widely regarded as the father of modern accounting. In his groundbreaking 1494 work, Summa de Arithmetica,...
January 31, 2025 | By Willi Brammertz and Allan I. Mendelowitz
Legal entity identifiers were a post-financial-crisis innovation designed to facilitate transparency of corporate interconnections of the sort that made transactions tied to the Lehman Brothers...
January 31, 2025 | By Michael Shashoua
When I read about technology risk today, or speak with other risk managers, software disruptions dominate the discussion. However, there are also many hardware ideas around that could cause radical...
January 30, 2025 | By Aaron Brown
Tokenization has the potential to revolutionize markets, primarily through the application of blockchain technology. It allows assets – particularly high-value ones like real estate, art, and company...
January 24, 2025 | By Alla Gil
If the stakes for effectively deploying artificial intelligence were not so high, then the technology would not be a front-burner strategic priority throughout the corporate world; the Big Tech...
January 10, 2025 | By David Weldon
Banks take, on average, 90 to 120 days to onboard a corporate client because of siloed and outdated Know Your Customer (KYC) processes. This includes an average of 51 hours spent doing manual tasks....
December 20, 2024 | By Alex Ford
Artificial intelligence systems for trading, factor identification and portfolio construction have not been able, to date, to communicate with each other effectively. But the technology is constantly...
December 13, 2024 | By Aaron Brown
On both the supply and demand sides of artificial intelligence, there is consensus that technology so powerful and transformative needs governing principles and ethics, operational guardrails and...
November 28, 2024 | By Jeffrey Kutler and David Weldon
In the mid-2010s, before founding the FTX cryptocurrency exchange, Sam Bankman-Fried and some of his associates worked at Jane Street Capital. The highly quantitative firm’s algorithmic trading and...
November 15, 2024 | By Michael Shashoua
Risk management has been forever changed by technological innovation. The roots of this boom date back centuries, but disruption-loving engineers have made a particularly huge impact on the financial...
October 25, 2024 | By Aaron Brown
Some of the biggest names in banking have spent years dipping toes, if not diving headlong, into the blockchain race. JPMorgan, HSBC and Société Générale, to name three, have stood out with...
October 25, 2024 | By Michael Shashoua
Since its origins in the 1950s, artificial intelligence (AI) has been marked by periods of intense optimism, interlaced with eras of rank pessimism. The past decade, which saw the rise of computers...
September 27, 2024 | By Tony Hughes
The Securities and Exchange Commission has given regulated entities a steady stream of new rules to comply with and often complain about. Since last December, registrants’ cybersecurity challenges...
September 13, 2024 | By David Weldon
The executive title of chief artificial intelligence officer (CAIO) is gaining acceptance in the public and private sector alike, and with a holistic regard for the desired range of technical...
September 6, 2024 | By David Weldon
A rapid unwind of carry trades on August 5 was one of the biggest financial events of the last month. Although there seems to be no lasting damage from the market turmoil, the mechanism by which it...
August 23, 2024 | By Aaron Brown
If artificial intelligence ultimately fulfills analysts’ projections and proponents’ expectations, it’s not just the rank-and-file workforce that must evolve and likely have to be upskilled....
August 16, 2024 | By David Weldon
In a short amount of time, developments in generative AI have leapt forward. Today there are numerous different forms: large language models (LLMs), diffusion models covering language and image...
August 2, 2024 | By Joe Lemonnier
Although estimates vary, asset tokenization is seen as a multitrillion-dollar business opportunity ripe for the taking by a financial industry becoming increasingly conversant with distributed ledger...
August 2, 2024 | By Michael Shashoua
Risk managers who want to take advantage of technology cannot simply have access to it. Whether we’re talking about, say, cybersecurity or machine learning or blockchain or digital currencies, to...
July 26, 2024 | By Aaron Brown
“Too critical to fail.” Is that what regulators mean – more precise semantically if not quantifiably – when they regard a bank as being too big to be allowed to fail? Might “too critical” widen the...
July 26, 2024 | By Jeffrey Kutler
Artificial intelligence is driving a bull market in stocks, a win for investors. For economists, however, the payoff will be measured longer-term, depending on how billions of dollars of technology...
July 3, 2024 | By David Weldon
Artificial intelligence is seemingly ubiquitous in financial services today. Still, disruption and instability threats remain, and a new academic paper has raised another AI concern: reversibility....
June 27, 2024 | By Aaron Brown
In the aftermath of a cyberattack, analysts seek to identify its cause or source in a task known as attribution. With assistance from government agencies and other threat intelligence, many of...
June 7, 2024 | By Jim Romeo
While generative AI is viewed by many financial institutions as a highly leverageable business opportunity, finding the right professionals to help them understand the breadth of its associated risks...
May 31, 2024 | By Dean Essner
From time to time I revisit my various slide decks on different topics, look at what is past its sell-by date, and what my blind spots may have been in the past. The latest to undergo this treatment...
May 31, 2024 | By Chris Yapp
It is a sign of the times that wherever business leaders gather, conversations converge on artificial intelligence. The subject came up countless times during the recent Milken Institute Global...
May 31, 2024 | By Jeffrey Kutler
With financial institutions (FIs) increasingly reliant on third-party services to drive revenue, cyber criminals have identified new and creative tactics that successfully penetrate highly...
May 24, 2024 | By Gabie Lang and Elena Khoroshun
Prescribing the wrong risk management framework may inadvertently exacerbate the risks posed by artificial intelligence. For that reason, the possible “downfall of humanity” is an idea that should be...
May 17, 2024 | By Kelvin To
Today, “technology risk” extends to everything from, say, artificial intelligence, machine learning, blockchain and cybersecurity to data, digital currencies and cloud computing. That’s a stark...
May 10, 2024 | By Aaron Brown
Governments around the world are more inclined than ever to move fast on data regulations in the face of emerging technologies. In the past five years, countries accounting for over half the global...
May 10, 2024 | By Gal Ringel
Having sensitized the business and financial worlds and government overseers to risks including bias and data manipulation, privacy and intellectual property violations, hallucinations and model...
May 3, 2024 | By David Weldon
A more stable financial system emerged from the global crisis of 2008 and has proved to be resilient in the face of subsequent shocks. But one provision of the Dodd-Frank Act, the 2010 U.S. law that...
April 26, 2024 | By Michael Shashoua
Fraud prevention is much like working behind the scenes of a Broadway show. The stage crew labors behind the velvet curtain to ensure a seamless experience, shining lights, moving props and managing...
April 12, 2024 | By Stu Bradley
Just as many risk managers are struggling with newly-mandated climate risk disclosure, nature risk reporting has appeared on the horizon. Forward-thinking managers therefore at least need to think...
March 28, 2024 | By Aaron Brown
The investment value chain has long been cluttered with intermediaries, dampening returns for investors and fostering inefficiencies and opacity within the financial sector. However, the rapid...
March 22, 2024 | By Mark Templeman
Only 9% of companies believe they are adequately prepared to manage the risks of generative AI. Organizations are still figuring out what generative AI safeguards are needed. In fact, only 17% of...
March 15, 2024 | By Jim Wetekamp
Today, if you are a tech-savvy financial institution, you need to assess the risks and opportunities of artificial intelligence – and of large language models (LLMs) like ChatGPT in particular. Can...
March 1, 2024 | By Mike van de Graaf
Critics of cryptocurrencies, ranging from senior regulators to well-known politicians to renowned economists and investors, have grabbed headlines by highlighting the potential of these instruments...
February 23, 2024 | By Aaron Brown
Leif Andersen, global co-head of the Quantitative Strategies & Data Group at Bank of America, has been selected by the International Association for Quantitative Finance (IAQF) as the IAQF/Northfield...
February 16, 2024 | By Jeffrey Kutler
Cyberattacks present a complex, advancing danger to the global financial system, with recent breaches exposing deep-rooted vulnerabilities. Given the rapid digitization of the financial sector and...
February 2, 2024 | By Cristian deRitis
Early in the last decade, as bitcoin was pulling into its orbit an anti-establishment subculture that was suspicious of traditional finance, a few TradFi thought leaders began to contemplate the...
February 2, 2024 | By Michael Shashoua
Large language models (LLMs), such as ChatGPT, are threatening to disrupt most areas of life and work. Financial trading is no exception. Earlier versions of machine learning (ML) and artificial...
January 26, 2024 | By Aaron Brown
Using artificial intelligence (AI) in our everyday lives and in business is firmly in the mainstream, and it’s now commonly accepted that any organization that doesn’t ultimately integrate AI into...
January 5, 2024 | By Haseeb Qureshi
Runaway artificial intelligence has been a major concern of science fiction at least since the 1909 publication of E. M. Forster’s The Machine Stops, but it took 114 years to get serious official...
December 22, 2023 | By Aaron Brown
Developing sector-driven correlation matrices is no small task for risk modelers. Traditionally, these modelers have used a combination of equity return data and expert judgment to measure...
December 8, 2023 | By Marco Folpmers
The National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), which for nearly a decade has guided finance and other critical infrastructures’ preparedness for and...
December 1, 2023 | By David Weldon
The increase in remote and hybrid work since the COVID-19 pandemic has revolutionized the way that companies operate. It has also introduced a new array of cybersecurity threats. There are more weak...
November 22, 2023 | By Dimitri Shelest
The battle against financial crime and money laundering is as much technological as it is a matter of law enforcement and regulatory compliance. As artificial intelligence has proved to be potent in...
November 10, 2023 | By Jim Romeo
Cybersecurity remains a top priority for executives across multiple industries, as threats continue to rise in volume and frequency – thereby increasing the risk businesses face. As the threat...
November 3, 2023 | By Aaron Pinnick
The ascension of generative AI (GenAI) tools, like ChatGPT and other so-called large language models, will likely shake-up the risk management profession, altering roles and responsibilities. Though...
November 3, 2023 | By Tod Ginnis
The rise of artificial intelligence tools over the past few years has improved modeling performance and has yielded risk management benefits across areas like fraud protection, anti-money laundering...
October 27, 2023 | By Jesús M. Gonzalez and Laura M. Gonzalez
High-frequency trading (HFT) is already lightning fast, but there is currently a proposal on the table to make it even speedier. What are the potential advantages and drawbacks of this possible...
October 20, 2023 | By Aaron Brown
We operate in an increasingly data-driven environment. Data is being leveraged to address many of today’s challenges, providing new insights to assist with areas such as risk management, operational...
October 13, 2023 | By Kapil Bansal
How might financial institutions use generative AI for both retail and corporate credit risk assessment? Potentially, this innovative technology could be used for everything from credit scoring,...
October 13, 2023 | By Tony Hughes
A new breed of cybercriminals has emerged in the online realm. Known as gray actors, they pose a significant challenge for online fraud prevention specialists and businesses, increasingly targeting...
October 6, 2023 | By Tamas Kadar
The revolutionary potential of generative artificial intelligence applications, like ChatGPT or Google's Bard, is undeniable. Fueled by the promise of skyrocketing productivity and a turbocharged...
October 6, 2023 | By Cristian deRitis
The search for stronger security and identity safeguards has made multi-factor authentication commonplace. Those additional layers of verification beyond passwords can include biometrics, based on...
September 22, 2023 | By Jim Romeo
Risk managers involved in cryptocurrencies or niche blockchain applications have had to think about both the positive and negative novel risks of blockchain for 15 years now, but we seem to be...
September 22, 2023 | By Aaron Brown
Companies go to great lengths to protect their top executives. Keeping them safe, healthy and happy so they can perform their duties without unnecessary distractions is critical for the productivity...
September 8, 2023 | By Dimitri Shelest
Technology revolutions can arrive unanticipated, their risks mitigated reactively at best. Think about the internet, whose security vulnerabilities were exposed with mass adoption, and which...
September 8, 2023 | By David Weldon
Conquering the contagion of systemic risk has resurfaced as an important aspect of maintaining a stable financial system. The failures this year of Silicon Valley Bank, Signature Bank and First...
September 1, 2023 | By Allan D. Grody
Central bank digital currencies (CBDCs) are on the horizon and risk managers need to pay closer attention to them. While CBDCs are still in their infancy and their adoption in major markets like the...
September 1, 2023 | By Cristian deRitis
Large language models (LLMs) like ChatGPT have vast potential in the financial sector. It’s a classic scenario of technology optimizing human work, not replacing it. These artificial intelligence...
August 25, 2023 | By Ani Chaudhuri
Let’s start with the good news. Fresh data shows that 65% of companies experienced fraud in 2023. That’s the lowest the figure has been since 2014. That is largely supported by the fact that 45% of...
August 11, 2023 | By Jimmy Fong
In the age where cyber attacks and other types of business disruptions are the norm rather than the exception, operational resilience has become a key focus of regulators to ensure financial firms of...
August 4, 2023 | By Taylor Broshar and Aaron Pinnick
Credit risk modelers are under pressure to improve the accuracy of default projections – and are increasingly using models driven by machine learning (ML) to achieve this goal. ML models, moreover,...
July 28, 2023 | By Marco Folpmers
The general business press usually fails to distinguish between financial control professionals and experts concerned with financial statements, tax accounting, audits and other reports generated for...
July 28, 2023 | By Aaron Brown
Financial services organizations have grown accustomed to dealing with regulations emanating from the European Union. A looming priority is EMIR Refit – the European Market Infrastructure...
July 21, 2023 | By John Hintze
Amid ever-growing cybersecurity threats, regulatory agencies have been ratcheting up their concerns through examination priorities and other policy prescriptions. The U.S. Securities and Exchange...
July 14, 2023 | By John Hintze
Artificial intelligence is turning the worlds of technology, business and government on their heads. All face strategic conundrums as, with ever-increasing power and visibility, large language models...
June 23, 2023 | By David Weldon
Hedge funds exert outsized influence on financial markets because they employ aggressive trading and high leverage. The world learned this in 1992, when George Soros broke the Bank of England – and...
June 23, 2023 | By Aaron Brown
Behind the screens of online commerce, money may not be moving as fast as it appears. It has taken years to implement payment-system upgrades to enable actual real-time transaction processing. More...
June 16, 2023 | By Jim Romeo
Large language models (LLMs) like OpenAI’s ChatGPT and Google’s Bard are becoming increasingly popular among individuals and firms looking to take advantage of the incredible power and efficiency...
June 9, 2023 | By Aaron Pinnick
What is the central goal of risk management? A common wrong answer is, “To predict and prevent disaster.” The issue with this response is that at least half of risk management is maximizing...
May 26, 2023 | By Aaron Brown
Where is artificial intelligence? It can appear to be everywhere – note all the rage surrounding ChatGPT and generative AI – and yet it is far from the maturity and ubiquity that its visionaries say...
May 12, 2023 | By Michael Shashoua
Decentralized finance (DeFi) may perhaps be best known as the engine behind cryptocurrencies – but it also has the potential to revolutionize finance by cutting out the intermediary for a range of...
May 5, 2023 | By Tod Ginnis
Alternative methods of credit scoring, increasingly supporting the underwriting of loans to unbanked and underbanked consumers, are also being adopted for small and startup business applicants that...
April 28, 2023 | By David Weldon
Risk Control Self-Assessments (RCSAs) have long been used by banks to oversee their operational and non-financial risks. However, the clue is in the name – it’s a self-assessment. It looks at the...
April 14, 2023 | By Paul Ford
Artificial intelligence is touted as a productivity enhancer and labor saver, but how solid is the evidence? Far away from the big financial centers and the institutions that invest most heavily in...
March 31, 2023 | By Jim Romeo
Wall Street firms’ data management practices are under intense scrutiny. Regulators are putting increased pressure on financial institutions to manage their spreadsheets and end user computing (EUC)...
March 10, 2023 | By Sandeep Kumar
French mathematician Helyette Geman is the latest mathematical finance luminary to be named Financial Engineer of the Year (FEOY) by the International Association for Quantitative Finance (IAQF) and...
February 17, 2023 | By Jeffrey Kutler
Open banking is inching its way into the U.S., and with it new possibilities for innovation and competition along with data-protection risks to be managed. Already accommodated by European...
January 27, 2023 | By Katherine Heires
It’s easy to get the impression that artificial intelligence is a 21st century phenomenon, but the idea is actually rather ancient. Neural networks, a central idea in the field today, were first...
January 20, 2023 | By Tony Hughes
From Log4J to the Russian invasion of Ukraine, the events of 2022 have demonstrated that cyber incidents are a very real threat to the functioning of critical services and need to be taken seriously....
January 13, 2023 | By Bob Kolasky
The 2022 digital asset crash wiped out more value than the $1.7 trillion during the burst of the dot-com bubble in 2000. The aftermath of the $3 billion-plus cryptocurrency seizure connected with the...
January 6, 2023 | By Kelvin To
Disrupt or be disrupted is the state of the financial services industry these days, driven in large part by the ongoing and never-ending evolution of advanced digital technologies. When companies...
December 9, 2022 | By Emily Frolick
Despite anti-discrimination and fair credit laws, a sizable swath of the U.S. population remains financially underserved, with limited access, if any, to mortgages and other credit products that are...
December 2, 2022 | By David Weldon
There is no question that artificial intelligence is a vital and growing topic that many businesses are looking at and implementing. From evaluating potential business deals to defending networks...
November 23, 2022 | By Alan Brill
Disrupt. Innovate. Accelerate. These are activities far more likely to be associated with technology and innovation than with risk management and compliance – except where entrepreneurs are shaking...
November 4, 2022 | By Katherine Heires
Machine learning (ML) is one of today’s hottest topics within the financial services modeling community. This technology holds great promise to expand credit availability, reduce losses and increase...
November 4, 2022 | By Clifford Rossi
Shareholders of Coinbase Global are paying a steep price. The stock has been down over 70% this year as the cryptocurrency exchange – the biggest in the U.S. – contends not only with uncertainties...
October 28, 2022 | By David Weldon
Settlement delays are costly enough to concentrate the minds of the financial markets’ biggest institutions and infrastructure operators. Depository Trust & Clearing Corp. (DTCC) is leading an effort...
October 28, 2022 | By Michael Shari
One of the key tasks of the financial risk manager, as one on my colleagues eloquently put it, is to “help people to worry more intelligently.” In part, the risk management field addresses our...
October 7, 2022 | By Cristian deRitis
The job cuts ascribed to the downturn known as crypto winter have spread to some of the cryptocurrency industry’s most high-profile and at times polarizing personalities. Among those resigning: Chief...
October 7, 2022 | By Jeffrey Kutler
“Deepfakes,” near-perfect but synthetic still images or video footage created with the intention of impersonating an individual’s identity, have gained recent notoriety. They are a type of synthetic...
September 30, 2022 | By Martin Rehak
The hype surrounding a major upgrade of the Ethereum blockchain had been building for years, but mainly among crypto-market enthusiasts who worked on it or understood the technicalities. Closer to –...
September 23, 2022 | By Jeffrey Kutler
The Global Legal Entity Identifier Foundation (GLEIF) has announced a rebranding of its mission – from identifying financial market participants exclusively, to identifying participants in digital...
September 9, 2022 | By Allan D. Grody
Fintechs are among the world’s most innovative companies. Innovation is moving so fast, in fact, that financial regulators are having trouble keeping up – but what are the risks of this disruptive...
September 9, 2022 | By Tod Ginnis
Financial firms pursuing digital transformation are adopting low-code software, a powerful method of simplifying and accelerating system development. But as with other information technology...
September 2, 2022 | By Katherine Heires
Between cloud migration, the COVID-19 pandemic, and nation-state cybercrime, risk management principles and practices have changed dramatically in a few short years. Headlines blare “Breach!” and...
August 19, 2022 | By Jeff Mezger
The “systemically important” label, attached to an elite group of banks as a result of post-financial-crisis regulatory reforms, may soon be applicable to U.S. critical-infrastructure industries in...
August 19, 2022 | By Jeffrey Kutler
New battles are flaring up around data privacy and portability. The issues that came to the fore in Europe’s landmark General Data Protection Regulation (GDPR) and influenced similar laws elsewhere...
August 12, 2022 | By John Hintze
Machine-learning (ML) models have become increasingly prominent within financial services firms, and their adoption is unlikely to slow anytime soon. What does this mean for the employment prospects...
August 5, 2022 | By Tod Ginnis
To embed or not to embed? That has become a question for a growing number of banks as opportunities and risks arise from embedded banking, or integration of payments, credit and other banking...
July 22, 2022 | By Katherine Heires
There are throngs of varying types and sources of alternative data. Unlike traditional models – those made available by financial exchanges and indexes, SEC filings, financial statements, corporate...
July 15, 2022 | By Julia Valentine
Although artificial intelligence has been evolving and gaining commercial acceptance for decades, it is advancing at such a pace as to confound efforts to fully grasp its business, economic and...
July 15, 2022 | By David Weldon
Today, we find our profession at a critical inflection point with the rise of “Big Data” and artificial intelligence applications. Indeed, thanks primarily to advances in computer software and...
July 15, 2022 | By Clifford Rossi
The 2008 Lehman Brothers bankruptcy and the global crisis that it triggered may be fading into history, but the financial world is still working to fix the data management debacle that the Lehman...
June 17, 2022 | By John Hintze
As ransomware and other destructive cyberattacks continue to inflict major losses, and as banks move toward digitization and a rising reliance on third-party suppliers, the exposure of the financial...
June 10, 2022 | By Christopher Hetner
The digitalization of businesses has the potential to unlock new opportunities for increased profitability and reduced risk. However, to reap the rewards of this transition, firms need to take a...
April 29, 2022 | By Alla Gil
Metaverse is one of the hottest buzzwords in technology. Given its potential impact on financial services firms, it’s a good idea to examine this new digital reality and to consider what it might...
April 15, 2022 | By Tod Ginnis
The invasion of the Ukraine by the Russian army was a sharp reminder that the world does not let us pause and recover from one crisis before delivering another; it would seem that, unfortunately,...
April 8, 2022 | By Peter Horne
Financial institutions have steadily increased their reliance on technology in recent years, a trend accelerated by the pandemic and the spike in remote work. As this digital dependence increases,...
April 1, 2022 | By Tod Ginnis
For Ibrahim Dusi, chief risk officer for the Americas at Revolut, artificial intelligence and machine learning “are an important tool in our toolkit” for fighting fraud or identifying bad actors....
March 25, 2022 | By Katherine Heires
The U.S. lags other countries in open banking, the practice of enabling the sharing of customer account information between banks and third-party service providers. A White House executive order...
March 4, 2022 | By John Hintze
In response a surge in cyber crime and a shift toward digitization in financial services, regulators are now turning up the heat on buy-side institutions, forcing management teams reconsider their...
February 25, 2022 | By Christopher Hetner
Banks are facing a November 2022 deadline to be able to receive cross-border payments in a new, data-rich messaging format. It is a step in the global migration to the ISO 20022 standard, which...
February 25, 2022 | By John Hintze
Today, financial institutions are using artificial intelligence (AI) and machine learning (ML) for everything from credit underwriting to fraud detection and anti-money laundering. It seems...
February 18, 2022 | By Tod Ginnis
After two years of battling the coronavirus, many health experts believe the crisis will recede only when COVID-19 becomes endemic. In other words, we can’t eliminate the virus, but we can hope to...
February 11, 2022 | By Paul Mee
Discussions around climate change and climate risk gained significant momentum in the past year, particularly in the lead-up to COP26, the United Nations’ climate change conference in November. As...
February 4, 2022 | By Peter Plochan
Even as distributed ledger technology shows that it can deliver efficiency and risk management benefits in structured finance, the vision of a fully digital marketplace has been slow to take shape....
January 28, 2022 | By John Hintze
Over the past year, cyber risk has grown, hand-in-hand, with the digital transformation of the financial services industry. As cloud computing and distributed transactional capabilities have been...
January 28, 2022 | By Christopher Hetner
The International Association for Quantitative Finance and Northfield Information Services have announced Dilip B. Madan as the 2021 IAQF/Northfield Financial Engineer of the Year (FEOY). The award...
January 7, 2022 | By Jeffrey Kutler
How do machine-learning (ML) models stack up against more traditional credit risk approaches? Just a few weeks ago, the EBA released a discussion paper on the use of ML techniques for the calculation...
January 7, 2022 | By Tony Hughes
A boom year in cryptocurrency trading and digital-asset development is nearing an end, and there is no let-up in the market’s allure for ex-regulators embracing both pro-innovation and...
December 17, 2021 | By Jeffrey Kutler
Did you hear about the latest major cybersecurity breach that disabled a public company? “Which one?” you ask. Take your pick. Cyberattacks are the new weapons of mass destruction for businesses, and...
December 17, 2021 | By David X Martin
Until now, European banks have been hesitant to apply machine learning (ML) to their internal-ratings-based (IRB) models for credit risk. The supervisory requirements they had to meet to ensure they...
December 10, 2021 | By Marco Folpmers
Amid a global surge in cyberattacks, the U.S. Securities and Exchange Commission (SEC) is expected to soon release a rule proposal aimed at providing investors with increased cyber-risk transparency....
December 10, 2021 | By Christopher Hetner and Lisa Quateman
Financial risk managers must assess a broad spectrum of threats, including the liquidity risks connected to substantial real estate investments. For many reasons, it’s hard to build valuation models...
November 24, 2021 | By Tony Hughes
Amid the pandemic, traditional data has failed to provide the timely insights required for drastically-changing behavioral patterns. That's one of the reasons why alternative data has seen...
October 22, 2021 | By Alla Gil
Ramping up its focus on cybersecurity disclosures, the SEC recently upped the ante on financial institutions' management of cyber risk. Following enforcement actions against eight financial services...
October 15, 2021 | By Christopher Hetner
Half a century ago, Nobel laureate economist Milton Friedman called corporate social responsibility “hypocritical window dressing,” saying executives who prioritized anything but profits “reveal a...
October 8, 2021 | By Elaine Chim
Editor's Note: Technology has been streamlining and accelerating commerce for decades, but the supporting payment systems have not quite kept pace. Efforts in the U.S. to implement real-time...
October 1, 2021 | By Ed Whitehead
A new reality is hitting home with cryptocurrency criminals and changing this category of cyber risk for the better: It has become more difficult to get away with illicit transactions and hold onto...
September 10, 2021 | By Katherine Heires
Financial institutions are using machine-learning-driven models for everything from anti-money laundering to fraud protection. However, while ML models have undoubtedly yielded gains in these areas,...
September 10, 2021 | By Marco Folpmers and Linda Torn
Global cybercrime damages are projected to reach $6 trillion this year, and nation-state adversaries are increasingly leveraging widely-used software suppliers to gain access to networks. The threat...
September 10, 2021 | By Christopher Hetner
The price of bitcoin can be wildly volatile. Cryptocurrency exchanges have been hacked and suffered outages. Some of those organizations hopscotch around the world to minimize regulatory oversight;...
September 3, 2021 | By Jeffrey Kutler
The financial services landscape may eventually be altered, significantly, by digital assets like cryptocurrencies and central bank digital currencies (CBDCs). Banks must therefore be prepared, not...
September 3, 2021 | By Cristian deRitis
Mounting financial losses due to cyberattacks have business leaders scrambling for answers and cyber insurance carriers searching for cost-effective solutions. Damages from cybercrime are projected...
August 26, 2021 | By Christopher Hetner
Fueled in part by high-profile ransomware attacks that have resulted in major losses, cybersecurity is now a top priority at just about every type of business - including financial services firms....
August 26, 2021 | By Christopher Hetner
We've all been in situations where people use quality of data as a smokescreen to avoid the real business conversation at hand. It's a natural human reflex that causes an insane amount of...
August 20, 2021 | By Adam Meister
Remote work and the technologies enabling it boomed during the pandemic, and fraudsters got busy - exploiting network vulnerabilities, collecting personal and business data, conducting social...
August 6, 2021 | By Katherine Heires
Like other leading market operators - and the investment community they serve - Deutsche BÖrse Group has been watching the emergence of crypto assets and setting strategy for jumping into the fray....
July 30, 2021 | By Jeffrey Kutler
Fueled in part by high-profile ransomware attacks that have resulted in major losses, cybersecurity is now a top priority at just about every type of business - including financial services firms....
July 30, 2021 | By Christopher Hetner
The biggest names and deepest pockets on Wall Street do not have the high-frequency trading (HFT) technology arms race to themselves. Serial trading tech entrepreneur George Kledaras is touting a...
July 2, 2021 | By Michael Shari
Mounting financial losses due to cyberattacks have business leaders scrambling for answers and cyber insurance carriers searching for cost-effective solutions. Damages from cybercrime are projected...
June 25, 2021 | By Christopher Hetner
Faster payment initiatives in the U.S. are catching up to and could surpass networks that got an earlier start in other countries. The Federal Reserve's pending FedNow Service promises to widen the...
June 25, 2021 | By John Hintze
In a post-pandemic world where historical data has been so clearly found wanting, it should come as no surprise that synthetic data approaches are sprouting like mushrooms after a rainstorm. In the...
June 18, 2021 | By Alla Gil
Although Interest Rate Risk in the Banking Book (IRRBB) is not a new topic, there are very few discussions and publications about the technical challenges that many banks still face. Regulators have...
June 11, 2021 | By Patrick Hauf and Stefan Trummer
What do Carly Simon's 1971 hit single and Amazon's 2013 patent for forecasting product demand have in common? They both focus on the concept of anticipation. As data and models permit faster, more...
June 4, 2021 | By Cristian deRitis and Laurent Birade
Some of us hate it, others love it, but at least we can all agree that networking is a very important business skill. The ability to accumulate connections that provide relevant business information...
May 28, 2021 | By Peter Went
Every investor who's ever read the small print knows that past performance doesn't indicate future performance. Today, in a world in which the relationship between established drivers and revenue has...
May 21, 2021 | By Alla Gil
Amid the pandemic, as banks rapidly transformed their core businesses to serve their customers, the digitization of banking has given rise to new model risk management challenges. Decision-making has...
April 30, 2021 | By Peter Went
Advances in natural language processing (NLP), a form of artificial intelligence that companies like Facebook and Google have applied in online search and voice recognition, are helping to accelerate...
April 23, 2021 | By Katherine Heires
The crypto world is exploding in financial value and investment dollars. A Bitcoin now trades at more than $60,000 in a trillion-dollar market, while non-fungible tokens (NFTs) sell for millions. But...
April 16, 2021 | By Brenda Boultwood
If career moves by former regulators are signs of the times, then J. Christopher Giancarlo could be the contemporary archetype. His first major announcement, after stepping down in 2019 from the...
April 9, 2021 | By Jeffrey Kutler
Cryptocurrencies have long been heralded as the future of finance, but it wasn't until 2020 that traditionally conservative and risk-averse institutions became proactive investors in this complicated...
March 19, 2021 | By Peter Went
Data has come to be known as “the new oil,” and as with motor oil, data comes in synthetic forms. Longtime risk manager Aaron Brown recalls pioneering work in the 1980s and '90s, “except we didn't...
March 12, 2021 | By Katherine Heires
The financial services industry is becoming rapidly transformed by the shift toward online banking products and services, where models driven by artificial intelligence (AI) have risen to prominence....
February 19, 2021 | By Peter Went
Paul Glasserman of Columbia University has won the 2020 IAQF/Northfield Financial Engineer of the Year (FEOY) award. The announcement was made February 8, but the customary annual dinner presentation...
February 19, 2021 | By Jeffrey Kutler
A couple of years ago, risk professionals had great expectations about artificial intelligence (AI). But the expected paradigm shift hasn't yet occurred - at least not for probability of default (PD)...
February 12, 2021 | By Marco Folpmers
The still unfolding saga of Bitcoin and other cryptocurrencies, while rife with speculation and skepticism, has given rise to a dynamic and growing class of digital asset products and entrepreneurial...
January 22, 2021 | By Jeffrey Kutler
While artificial intelligence brings fundamental changes to quantitative and analytical modeling, risk managers are having to update and adjust their work processes to keep pace with the...
January 15, 2021 | By Katherine Heires
COVID-19 has set structural and technological changes in motion, creating new cyber risk and security challenges that will likely endure even after the pandemic ends. There is no shortage of...
January 15, 2021 | By Christopher Hetner
A “cyber Pearl Harbor” scenario has haunted the technology world since then-U.S. Defense Secretary Leon Panetta presented it in 2012. The massive SolarWinds breach that came to light in December 2020...
January 8, 2021 | By Jeffrey Kutler
The earth is trembling below the feet of the chief risk officer, who is now facing huge risk assessment and risk integration challenges. While there are no simple solutions, artificial intelligence...
December 18, 2020 | By Brenda Boultwood
The end of the year is an opportune time to assess the risk management implications of three evolutionary trends that defined 2020 for fintechs: the increased commercialization of artificial...
December 18, 2020 | By Peter Went
Speed and competition are hallmarks of high-tech culture. The financial industry has sought to infuse these values into its fintech initiatives, and the regulatory community is following suit. As...
November 25, 2020 | By Jeffrey Kutler
Ahead of the recent U.S. presidential election, regulators doled out billions of dollars in penalties to several large banks, shining a clear spotlight on risk management and compliance failures. It...
November 13, 2020 | By Brenda Boultwood
The rhetoric around the coronavirus pandemic has been intense, creating tension, confusion, and even violence over the right way to handle this crisis. Some have argued that locking down the economy...
November 6, 2020 | By Cristian deRitis
Every year, cybercrime becomes cheaper, easier, and faster, making a variety of companies - including banks - more vulnerable to attacks than ever before. Damages from cybercrime are projected to...
November 6, 2020 | By Christopher Hetner
Earlier this year, in just a few weeks, COVID-19 forced greater adoption of innovative technologies and accelerated a worldwide digital transformation. In financial services, operating models and...
October 23, 2020 | By Peter Went
Operationally speaking, 2020 has been a banner year for exchanges and financial market infrastructures. The World Federation of Exchanges (WFE) said value and volume traded worldwide set records in...
October 16, 2020 | By Jeffrey Kutler
As a vast majority of the financial industry's workforce continues working remotely, organizations are operating in entirely new ways. No one could have predicted at the end of last year that a...
October 9, 2020 | By Dan Thieke
In an effort to address the types of inefficiencies in the securitization market that helped fuel the subprime mortgage crisis, a pair of large financial services firms are now employing blockchain -...
October 2, 2020 | By John Hintze
The much touted digital transformation of business, finance and the economy is well underway, judging by how readily people and organizations adjusted to new working and distancing conditions...
September 25, 2020 | By Katherine Heires
The original cryptocurrency, Bitcoin, and its blockchain ledger are more than a decade old. Yet even as established institutions have deliberately made their way into the asset class and tested the...
August 28, 2020 | By Jeffrey Kutler
Technology pilots are underway at major financial firms this summer that are monitoring model risk in real time, providing “explainability” on artificial intelligence deployments, weeding out...
August 14, 2020 | By Katherine Heires
To improve alpha, quantamental portfolio managers combine fundamental analysis with various quantitative approaches. By identifying patterns and statistical relationships across fundamental and...
August 7, 2020 | By Peter Went
There is nothing simple about cyber warfare, but, for the sake of argument, think of it as boiling down to two opposing sides. On the offensive are those that break through defenses stealthily and...
August 7, 2020 | By Jeffrey Kutler
Many organizations are experimenting with, if not purposefully deploying, artificial intelligence. But what happens when those systems or the decision models they power go haywire, decay, or are...
July 31, 2020 | By Katherine Heires
Historically, financial regulatory agencies were anything but centers of innovation and were assumed to be a step or two behind the institutions they supervised, particularly when it came to...
July 24, 2020 | By Jeffrey Kutler
Prompted by a push by investors to incorporate environmental, social and governance (ESG) issues in their analysis of investment risk, credit-rating agencies are advancing efforts to integrate these...
July 17, 2020 | By John Hintze
The most endearing sketches of Little Britain, a BBC comedy show, features a character named Carol Beer. Carol always responds to a customer's enquiry by typing into her computer and responding, even...
July 10, 2020 | By Peter Went
Even as the world gradually reopens, traditional banks are facing an uncertain future, rife with vanishing revenues, huge projected credit losses, declining earnings and stiff digital banking...
June 12, 2020 | By Peter Went
Money-laundering scandals have been the bane of financial institutions for two decades, and 2020 is proving no different. Faced with ever-increasing regulatory-enforcement actions, many firms...
June 5, 2020 | By Sven Stumbauer
The fanfare may not be quite what blockchain promoters were anticipating a few years ago, but the technology is gradually and noticeably establishing itself as a component of financial market...
May 29, 2020 | By Jeffrey Kutler
The COVID-19 health crisis has changed how we live and work, and while the pandemic is unprecedented, many of its impacts on financial services firms and their operations are not unlike what we've...
May 22, 2020 | By Dan Thieke
Assessing the various business risks, sector disruptions and investment opportunities brought on by COVID-19, AllianceBernstein chief risk officer Andrew Y. Chin does not merely scan the regular run...
May 15, 2020 | By Katherine Heires
Today's business leaders are dealing with unprecedented levels of disruption and uncertainty. Focused on immediate concerns, organizations have prioritized establishing flexible and secure remote...
May 8, 2020 | By Phil Ratcliff
The Commodity Futures Trading Commission has opened a new “competitive” front in its strategy to stimulate technology innovation. Continuing to raise its profile in parallel with other supervisory...
May 1, 2020 | By Jeffrey Kutler
Fearing the risk of community transmission during the SARS pandemic, users in Asia flocked to a small online e-commerce company, Alibaba, helping it reshape e-commerce and finance. Persistent social...
May 1, 2020 | By Peter Went
Just over a year after becoming chief executive officer of Tassat, a New York company responsible for institutional trading and payments breakthroughs using blockchain technology, Thomas Kim has been...
April 9, 2020 | By Jeffrey Kutler
COVID-19 has had an unprecedented impact on the economy, society and financial institutions. While the long-term effects are uncertain, we know that the global pandemic will fundamentally transform...
April 9, 2020 | By Peter Went
Cybersecurity threats are so numerous, technically challenging and constantly evolving that technology companies are rarely so bold as to claim they have an all-encompassing solution. Large...
April 9, 2020 | By John Hintze
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