Are your back office and front office aligned? Are logistics aligned to sales, is procurement aligned to maintenance, is risk aligned to production? If not, there is a chance you have been hi-jacked by well-meaning technical specialists. So technical, so smart, that they have created too many technical requirements, surrounded by technical jargon, that it is meaningless to the business they are meant to serve. The risk function with so much complexity and a tendency to Risk-Speak is one of the w
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Have you ever experienced uncertainty? I think most of us have, except those lucky souls who can control/manage future through quantifying mathematical equations, generally referred as risk managers. Uncertainty is a state of being unpredictable, volatile, stressful, random, disorderly, unstable, summing up into everything which moves us away from our comfortable state of thinking linearly. It’s not just absurd, but devastating to think you can predict events using perfect market
Ahead of the 3rd Edition IRB Models, the Standardised Approach for Credit Risk, and Capital Floors Conference, we spoke with Gottfried Gruber, Senior Examiner, On-Site Supervision Division at Oesterreichische Nationalbank, about how IRB models can be best developed for low default portfolios.
When IRB models were introduced by Basel II around 2004 the idea was to achieve a more risk sensitive approach to calculate capital requirements for credit risk. The Basel Committee then recognized the impor
