Risk Insights Resource Center
Displaying 64 results
Past Events and Content
GBI ECB Pillar 2 Benchmarking Study
May 14, 2025
Financial institutions are required to hold capital to protect against the risks and financial shocks they are exposed to on a day-to-day basis.
See White PaperGlobal Survey of Nature Risk Management at Financial Firms
May 6, 2025
Nature underpins both our economies and livelihoods. Indeed, the entirety of our economy depends in some way on nature, for example through its ...
2025 FRM Global Practice Analysis Report
February 24, 2025
Quantitative skills and abilities are a starting point for financial risk managers, but practitioners need more than knowledge of models and methods.
See White PaperPacioli in the Computer Age
January 29, 2025
Luca Pacioli, a friend and contemporary of Leonardo da Vinci, is generally considered to be the father of modern accounting. In this paper, Willi ...
Nature Risk Management: Looking to the Future
November 18, 2024
While still in its infancy, nature-related financial risk management is likely to become increasingly important, with financial firms expected to ...
Risk Career Trends and Future Insights
November 5, 2024
What skills are hiring managers looking for? Which departments have been adding staff? What competencies are most important for progression? In ...
See White PaperGlobal Survey of Nature Risk Management at Financial Firms
April 16, 2024
2024: A Discipline in Its Infancy
COVID-19: A Catalyst for Evolving MRM
March 28, 2024
The COVID-19 pandemic reshaped the landscape of the financial services industry, prompting a reevaluation of traditional model risk management ...
The State of Financial Risk Management in China: 5 Insights
January 25, 2024
What major trends are shaping China’s risk jobs market? A new study provides valuable insights about salaries, promotions, career development, and ...
See White PaperArtificial Intelligence and the Revolution in Financial Crimes Compliance
November 22, 2023
Federated machine learning can enable companies to detect financial crime at a lower cost without sharing their data. Gary M. Shiffman, Shelly ...
Hiding in Plain Sight: How Fundamental Risks Caused a Banking Crisis
August 9, 2023
What were the driving forces behind the recent U.S. bank failures? SSGA’s Daniela Litvin, Bruce Casper, David Tavares, Suzanne Smore, Ben Des Clayes, ...
A Guide to PRA’s Model Risk Management Principles
August 1, 2023
UK-incorporated banks, building societies and investment firms that use internal models for capital calculations now face pressure to adhere to model ...
The Suitability of Models in Today's Environment of Emerging Risks
July 13, 2023
Model failures in recent times have called into question the effectiveness of the methodologies currently used by many banks, particularly for credit ...
Crisis Risk and Risk Management
May 17, 2023
Firms that use data to account for interactions between risks can more accurately forecast crises – but some types remain unpredictable. René M. ...
What Bank Board Risk Committees Should Be Asking Management Teams
May 2, 2023
Greater scrutiny of interest rate, liquidity and credit risks is needed to stem the tide of bank failures. Cliff Rossi explains why risk committees ...
Climate Risk Leadership: Lessons From 4 Annual Surveys
April 27, 2023
While climate risk management at all financial institutions has significantly progressed in recent years, differences remain between leading firms ...
Reimagining the Federal Home Loan Bank System
March 22, 2023
How can we reduce systemic risk and create more competition in the U.S. mortgage secondary market? Clifford Rossi explains how these objectives can ...
The Fall of Silicon Valley Bank: A Systemic Risk View
March 20, 2023
How much of a systemic threat did SVB pose to the financial system before it was shuttered? GBI’s Chris Donohue, Bryan Feierstein and Eli Crane ...
Biodiversity Loss: An Introduction for Risk Professionals
March 2, 2023
In recent years, biodiversity loss has gained increasing focus as an urgent and systemic environmental risk for its impact on global food security, ...
Risk Management: DeFi Lending and Borrowing
February 9, 2023
Decentralized finance promises a new and efficient way of enabling access to financial services, but it does not come without sizeable risks. Kashish ...
Fourth Annual Global Survey of Climate Risk Management at Financial Firms
September 13, 2022
Steady Progress Amid Increasing Regulatory Scrutiny, 2022
Understanding the Risks of Multiple Credit Scores in Mortgage Lending
August 17, 2022
Competition among credit score providers is heating up, with increased focus by regulators on expanding equitable access to credit for consumers with ...
Calculating the Regulatory Surcharge for US G-SIBs
August 4, 2022
To ensure that they are fully prepared for future crises, global systemically important banks (G-SIBs) must hold extra levels of regulatory capital. ...
Steering the Ship: Creating Board-Level Climate Dashboards for Banks
July 12, 2022
As climate change risks increase worldwide, company boards will be critical in ensuring their firms remain resilient and on a path to carbon ...
Robust Estimation of Loss Models in the Insurance Industry
May 5, 2022
Comprehensive loss models are important for all financial services firms, but particularly for insurers. Chudamani Poudyal and Vytaras Brazauskas ...
The Time Varying Bayesian Beta
April 21, 2022
Vasicek’s Bayesian approach for estimating security beta has been widely accepted in the financial services industry, but is it too static? Giuseppe ...
2022 Best Practices of Climate Risk Management Leaders
March 22, 2022
In this paper, GARP Risk Institute highlights the best practices implemented by climate risk management leaders and outlines the steps others can ...
Rethinking Business Models from the Perspective of ESG
March 17, 2022
Forward-looking financial institutions are adapting their methodologies to account for environmental, social and governance issues. Enrico Guarnerio ...
The Art of Running Model Validation in a Bank
March 10, 2022
Financial institutions are under increasing regulatory pressure to implement robust model validation. Subrahmanyam Oruganti and Surabhi Kashyap ...
Bayesian Backtesting for Counterparty Risk Models
March 3, 2022
Financial institutions need a conceptually sound and easy-to-implement approach for analyzing model performance. Matthias Arnsdorf and Mante Zelvyte ...
Explainable Machine Learning Models of Consumer Credit Risk
February 24, 2022
In the financial services community, ML models are currently being used for everything from credit underwriting to forecasting to fraud detection and ...
Political Risk Management
February 17, 2022
The COVID-19 pandemic and social unrest have shined a corporate spotlight on political risk. Omari Scott Simmons explains how businesses can use ...
Assessing ESG Risks for Businesses in the COVID-19 Era
February 3, 2022
Business operations, supply chains and economies around the globe have been disrupted by the pandemic. Paul Hirose and T. Markus Funk discuss the ...
Illiquidity Risks in Lending Protocols
January 27, 2022
Where do lending protocols fit in the decentralized finance landscape, and do they suffer from insufficient liquidity? Xiaotong Sun investigates the ...
Do Artificial Neural Networks Provide Improved Volatility Forecasts?
January 20, 2022
Stock market volatility forecasting is an important component of measuring and managing investment risks. Mehmet Sahiner, David G. McMillan and Dimos ...
IFRS 9 and Probability of Default
January 14, 2022
Loss allowances for expected credit losses differ significantly across European banks. The University of Innsbruck’s Matthias Bank and Bernhard Eder ...
Climate Risk Regulatory Expectations and Stress Testing
November 1, 2021
Inspired by the survey results from GARP’s recent Climate Risk Symposium, we investigated regulatory expectations and approaches for stress testing ...
Credit Risks of Peer-to-Peer Lending: The Stock Market Effect
October 20, 2021
How does the performance of a stock exchange impact credit quality, loan defaults and delinquencies in the P2P space? Xin Liu, Xiaoran Ni, Zhigang ...
Why Do Bank Boards Have Risk Committees?
September 16, 2021
Banks reap many benefits from well-functioning risk committees, but reduced risk is not necessarily one of them. René M. Stulz, James G. Tompkins, ...
Third Annual Global Survey of Climate Risk Management at Financial Firms
September 15, 2021
GARP Risk Institute recently completed its third annual Global Survey of Climate Risk Management at Financial Firms. The results detailed in this ...
Pricing Extreme Mortality Risk in Volatile Times
September 9, 2021
COVID-19 has increased the challenge of properly pricing extreme mortality risk. Han Li, Haibo Liu, Qihe Tang, Zhongyi Yuan analyze the latest U.S. ...
Forecasting Tail Risk Measures for Financial Time Series
September 2, 2021
Can a financial institution improve its VaR and expected shortfall projections via a risk model that incorporates economic and financial covariates? ...
Regulatory and Physical Risks Top List of Climate-Change Concerns
August 26, 2021
Finance academics, public-sector regulators and policy economists think regulatory risk is the largest short-term hazard of climate change, while ...
See White PaperModeling and Forecasting the CBOE Volatility Index
August 19, 2021
Predictions of future price variability are needed to measure the risk of a portfolio and to value financial instruments. Giuseppe Corvasce examines ...
Credit Default Swaps and Credit Risk Reallocation
August 6, 2021
How can investors’ exposure to credit risk be reallocated through credit default swaps? Using granular data on both debt and CDS exposures by French ...
The DeFi Paradox: Risks and Opportunities
July 29, 2021
By reducing the costs and risks of using centralized intermediaries, decentralized finance promises cheaper and more open access to financial ...
Disasters, Large Drawdowns and Long-term Asset Management
July 22, 2021
Long-term investors are often reluctant to invest in assets or strategies that can suffer from big drawdowns. The University of Lausanne’s Eric ...
The Black Swan Problem
July 15, 2021
How financial institutions cope with tail risk is an under-researched issue. Nick Christie, Nicoletta Marinelli and Håkan Jankensgård explain Black ...
Predicting VIX with Adaptive Machine Learning
July 8, 2021
Can the power of machine learning be harnessed to forecast the daily CBOE implied volatility index? Yunfei Bai and Charlie X. Cai answer this ...
Quantile Risk-Return Tradeoff
June 24, 2021
The quantile regressions technique is effective for measuring the performance of stocks, particularly when dissecting the tails of returns. Nektarios ...
Liquidity Stress Testing in Asset Management
June 17, 2021
How can financial institutions model asset liquidity risk? Thierry Roncalli, Amina Cherief, Fatma Karray-Meziou and Margaux Regnault explain the main ...
The Potential Impact of ESG on Tail Risk
June 10, 2021
Environmental, social and governance (ESG) trading activity has become a staple of financial markets, but whether ESG scores convey information ...
Risk Management for Emerging Markets: How to Avoid Another Derivatives Crisis
June 3, 2021
Recent losses reported by financial institutions have not only caused enormous alarm but also fueled debate and confusion about the appropriate use ...
Cyberattacks on Small Banks and the Impact on Local Banking Markets
May 27, 2021
Cyber breaches can cause significant reputational damage at diminutive banks. Fabian Gogolin, Ivan Lim and Francesco Vallascas explore the effects of ...
Stock Market Volatility: Friend or Foe
May 20, 2021
How is portfolio performance impacted by different types of volatility? Michael J. Dempsey, Abey Gunasekarage and Thanh Truong assess the connection ...
Machine Learning Predictions of Credit and Equity Risk Premia
May 6, 2021
The emergence of algorithmic high-frequency trading has given rise to new AI-driven methodologies for predicting credit risk. The University of ...
The Effects of the Adoption of IFRS 9
April 29, 2021
How does this accounting standard impact the predictability of credit losses across European banks? Christophe Lejard, Eric Paget-Blanc and ...
Cyclical Patterns of Systemic Risk Metrics: Cross-Country Analysis
April 22, 2021
What can we learn about liquidity, solvency and mispricing risks through the study of a prolonged financial cycle? The IMF’s Plamen K. Iossifov and ...
January 2021 Webcast Q&A: How to Make Climate Scenarios Usable for Financial Firms
April 15, 2021
Bridging the Gap Between Climate Scenarios and Risk Measurement. Our expert panel shares their views on how to make climate scenarios usable for ...
Modeling Extreme Events
March 25, 2021
What factors should financial institutions consider when forecasting and analyzing rare tail-risk incidents? Bernd Schwaab, Andre Lucas and Xin Zhang ...
Asset Pricing with Conditional Illiquidity
March 19, 2021
During crises like COVID-19, proper measurement and management of liquidity risk is paramount. Giuseppe Corvasce proposes a dynamic model for pricing ...
The Energy Transition: Challenges and Opportunities for Risk Managers
February 10, 2021
As governments and companies commit trillions of dollars to achieve net-zero emissions by midcentury, market risks have never been higher for oil ...
Risk Management in China: A Case Study on Equity Pledges
January 28, 2021
Private enterprises must take a disciplined approach to risk management, particularly as they seek to raise capital. To demonstrate the challenges ...
The LIBOR Transition: Alternatives to the Alternatives
January 7, 2021
Although imperfect, LIBOR has proven to be quite useful in a variety of financial products and applications. DHG’s Jared Forman and Ben Boulris ...