Measuring risk means walking a thin line. Balancing what is highly unlikely from what it totally impossible. Financial institutions need to be prepared for the highly unlikely but must avoid getting sucked into wasting time worrying about the totally impossible.
Here are some sins that are sometimes committed by risk measurers:
1. Downplaying uncertainty - Uncertainty increases when loss size increases. Do your users know that?
2. Comparing incomparables - Do you add together numbers from di
Basel III
There has been a lot of debate around the world over the new Basel III accord and what it means for banks. A set of blog articles have been published on the Causal Capital webpage which discuss various aspects of this new mandate.
Wrong Way Risk
Wrong Way Risk occurs when exposure to a counterparty is adversely correlated with the credit quality of that counterparty and features heavily in the Basel III requirements. This blog article discusses what drives wrong way risk and the measur
Due to the overwhelming interest in the 4th Annual ERM Conference from March 17-18, 2011, the program is currently getting very full. We are working on the last few seats for this conference and want to make sure that anyone who is interested in attending, can do so.
The last day to register is March 7, 2011!!
Current Speakers Include:
Norman Marks, SAP
Susan Sieker, Brinker International, Inc.
Cristina Tate, Hewlett Packard
David Wong, CME Group, Inc.
Geoffrey Smith, Iron Mountain, Inc.
John J. Brown
Thanks to the participation of modeFinance (company website here) to the MathWorks Connection Program (link) and the capability of modeFinance in numerical methods for credit risk evaluation, modeFinance and Mathworks are happy to invite you to the following seminar:
“Matlab for Computational Finance”
Location: Milano, Italy
Date: March 22, 2011
Hour: 17.15-20.00
During the event, Mattia Ciprian, Ph.D. and Valentino Pediroda, Ph.D. ,cofounders of modeFinance, will present the "Implementation and te
As it is possible to read in the interesting working paper titled "Does Private Equity change the performance of a European firm in which it invested?", Oleg Badunenko, Christopher F. Baum, and Dorothea Schäfer, German Institute for Economic Research (DIW−Berlin), Department of Innovation, Industry, and Service, Berlin, Germany (link at the paper), the MORE rating (link), thanks to the accuracy and the quality of its results, could be effectively used in the study of the relation between private
Dear Community member,
Last month, there were 6.4 unemployed persons for every job opening in the USA, according to the Labor Department. For those who aren't hired, understanding what happens to their candidacy along the way can be a mystery. But knowing what goes on in the hiring process may give prospects the inside track for a job. We're happy to share a webinar recording from Ivy Exec that lifts the curtain on the hiring process.
If you'd like full access to Ivy Exec's webinars and profes
In the vast majority of cases, regardless of the duration, the end success or successful resolution to a crisis is determined by the initial actions in the first 24 hours. Often referred to as the “Golden Hour” in emergency medicine, the initial hour of the first 24 hours is the foundation upon which the primary phase is predicated. The events, information and decision making process during these two phases will place both individuals and multi national cor
Introduction
The classic text book definition of risk is, “the probability of a threat agent exploiting vulnerability and the resulting business impact”. Vulnerability can be from applications, software’s, firewalls, people, process, location etc and what we're trying to see here is the vulnerability from software’s or applications and importance of patch management which in turn will result in effective risk management .
Effective Patch Management = Effective Software Vulnerability Management = E
The firm says that it hopes that the unique app – which is offered for free – will offer simple way for decision-makers to identify the potential business impact of their organisation's assets and processes being disrupted.
The app – Citicus MoCA – is billed as being easy to use and "enables a wider rang
Border Group Inc Possible Bankruptcy Filing? Check the modeFinance Credit Rating (CC in 2010)! http://tinyurl.com/6em7sqy
In order to give a financial and economic overview of miscellaneous companies from different countries, modeFinance (link) analysts executed a deep analysis on the corporate credit rating behaviors for the years 2007, 2008 and 2009 all around the world.
Please, download here (link) the overview.
If you’re like most people and you believe that government travel advisories, warning and alerts represent the most accurate advice for business travellers then you are terribly mistaken.
Here are the key elements that all business travellers and travel managers need to know regarding the validity and application of government travel alerts and travel related advice. Knowing and understanding these few simple issues will save your
A couple of weeks back I was approached by a HFT magazine editor and he asked me whether I would be interested to write down some of my experiences in HFT. As I am not directly participating in the midst of HFT at this point, I had to give it quite some consideration. Why would I do this? Placing myself in a vulnerable and visible position is not my first nature. Still I strongly believe in taking away the mystique or even – allow me – hysteria regarding this type of Capital Markets business. I
Introduction
Let’s start with what’s Web 2.0 before getting in to the risks.
The term Web 2.0 is commonly associated with web applications that facilitate interactive information sharing, interoperability, user-centered design and collaboration on the World Wide Web.
For some of you still not clear of what’s Web 2.0 let me put it down in a different way. Web 2.0 is Facebook or MySpace or Linkedin or Twitter or the blogs or the Wikis or any web site which allows the visitor to interact by posting up
Paul Clarke from eFinancialCareers
Spending on risk management technology continues to be a priority for investment banks going into 2011. But, with salaries for IT professionals in this area already on the increase, firms are looking outside of the financial sector for expertise.
Yet more IT dollars will be gobbled up by risk management projects within investment banks this year, as they look to align their risk management with business strategy and investment operations. The up
Are you wondering “How safe is it to travel to Thailand in 2011?“. So are many others. Find out here what the main travel safety and security issues will be for Thailand in 2011. You may be surprised as to what the REALthreats and issues are.
Thailand Travel Safety and Security Report
Information & Security: An International Journal
Special issue on
Editor: Prof. Alexander Yankov
Judge, International Tribunal for the Law of the Sea
{Keywords: piracy, situational awareness, maritime sovereignty, maritime safety, security or maritime transport, emerging security challenges, transport infrastructure, harbor protection, risk analysis, terrorism, counterterrorism, threats, risks, vulnerability, risk assessment, risk mitigation, risk management, Critical Infr
“You could be a meteorologist all your life and never see something like this. It would be... the perfect storm.” So goes a classic line in one of the few great Hollywood fishing epics. The Perfect Storm finds fisherman George Clooney and his shipmates venturing out into dangerous waters and being trapped between two momentous and powerful storm fronts. Asset managers may well empathise.
On one front, ever more powerful regulation is blowing in, growing as it does. This regulation comes with eve
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