A 2022 Primer for Crypto-Trading
20 June 2022 | Technology Innovations
A 2022 Primer for Crypto-Trading Andreas Park, Research Director, Rotman FinHub, University of Toronto Download the full paper – PDF Version
Building a Stronger Economic Future: Key Takeaways from Federal Budget 2022
15 April 2022 | Financial Stability and Regulatory Compliance
Building a Stronger Economic Future: Key Takeaways from Federal Budget 2022 Victoria Guo, Director, Research, GRI Download the full Report – PDF Version ABOUT THIS REPORT: Finance Minister Chrystia Freeland delivered the federal budget (“Budget 2022”) on Thursday, April 7th, 2022. “A Plan to Grow Our Economy and Make Life More Affordable,” Budget 2022 sets… View Article
Deep Hedging of Derivatives Using Reinforcement Learning
16 February 2022 | Technology Innovations
One of the areas in finance where machine learning is having an impact is the hedging of derivative portfolios. If there were no transaction costs, one strategy would be to zero out all the Greek letters (delta, gamma, vega, etc.). But in practice, a trader must follow a partial hedging strategy that reflects trade-offs between risk reduction and transaction costs.
Diversity, Equity and Inclusion: The Journey Ahead for Boards
14 October 2021 | Risk Management Practices
Evolving societal trends and recent events point to the clear need for financial institutions to focus on diversity, equity and inclusion (DEI).
Robo Advisors for Canadian Pension Participants
24 September 2021 | Pension Hub
Robo Advisors for Canadian Pension Participants Denis Latulippe, Laval University John A. Turner, Pension Policy Center Download the full paper – PDF Version Abstract Portfolio management has evolved. Robo advisors provide financial advice to clients who previously did not have access to such assistance because they lacked sufficient amounts of investible assets, and because they… View Article
We Are on the Bell Lap: Top 5 Takeaways from the IPCC’s New Climate Science Report
9 August 2021 | Sustainable Finance and Climate Risk
On the close of the Tokyo 2020 Olympics, we now turn our attention to another race in which the bell is loudly tolling to say that we have come to the final lap.
Canadian Perspectives on Mass Mobilization and the Risks to Investors and Financial Market Stability
3 March 2021 | Financial Stability and Regulatory Compliance
Canadian equity market experts, ranging from market enablers to investor protectors, were recently gathered by the Global Risk Institute (GRI) to discuss the future implications of last month’s events which captivated financial markets observers.
Digital Assets May Shift Global Trade Currency
30 October 2020 | Technology Innovations
The race to develop and adopt global stablecoins (GSC)/central bank digital currencies (CBDC) has the potential to put the stewardship of the global financial system up for grabs.
Progress Toward 2021 Canadian Monetary Policy Renewal
18 September 2020 | Macroeconomic Risk
The Bank of Canada (BoC) is in the process of a multi-year review in advance of the renewal of its monetary policy framework in 2021. Culminating in an inflation-control agreement with the Government of Canada every five years, the renewal process adds credibility to the Bank’s inflation objective and underpins its operational independence. This paper is a summary of the virtual workshop the BoC held on August 26th titled “Towards the 2021 Renewal of the Monetary Policy Framework.
Model Risk Management in the Current Pandemic Environment
21 August 2020 | Pandemic Response
The rapidly changing environment of the pandemic has strained the process of model development and independent validation functions in risk management. This paper discusses selected challenges institutions may face in its model risk management process and addresses some of these challenges, leveraging its traditional infrastructure for managing all risks on an enterprise wide level.
Canadian Bank Dividends: Income Importance During and Beyond the Pandemic
30 June 2020 | Pandemic Response
This article explores the benefits of Canadian bank dividends, beginning with two areas that are often too little recognized. The first is the significance of Canadian bank dividends to sustaining household cash flow and liquidity, including their rising share of retail investor incomes, attractive absolute and relative yields, and dependability. The second is the crucial role of bank dividends in seniors’ incomes, including the structural trends boosting their importance in funding retirees’ spending needs.
The European Union Sustainable Finance Taxonomy: Implications for Canada
29 May 2020 | Sustainable Finance and Climate Risk
The European Union Sustainable Finance Taxonomy has arrived! What is it, and why should Canada care? One of the missing critical catalysts for kick-starting the sustainable finance industry has always been a comprehensive, science-based classification system creating a common language for sustainable investments. On March 9, 2020, the EU Sustainable Finance Taxonomy was released. It fills that critical void and is a genuine game-changer.
Financial Institution Operational Resilience: Pre and Post COVID-19
22 May 2020 | Operational Resilience
Once we move through this current crisis stage, we will have to deal with transition and, then, forge a sustainable path — a path that has been referred to as the “new normal”. This piece provides seven key guidelines for operational resilience on how to better position our financial institutions.
Bank Dividend Regulation: Impact of the COVID-19 Pandemic
8 May 2020 | Pandemic Response
With the world in the midst of the COVID-19 pandemic that has precipitated a severe global economic contraction, regulators and financial market professionals across the world have moved rapidly to prevent another financial crisis. As part of the regulatory initiatives intended to reduce the real economy impact and financial market strain, some regulators have been calling for coordinated, worldwide action to suspend all bank dividends for the foreseeable future.
Geopolitics in a Post-Pandemic World
8 May 2020 | Pandemic Response
COVID-19 sets a new precedent for the scale of a public health response and its vast economic consequences, but also poses longer-term geopolitical challenges and risks for Canadian financial services.
Long-Term Thinking In Extraordinary Times: Policy-Making & Regulation During the COVID-19 Crisis
21 April 2020 | Pandemic Response
It is challenging to think longer term in the midst of the COVID-19 crisis and an economic contraction of huge magnitude and uncertain duration. The extraordinary healthcare needs and enormous economic and financial stresses are rightly dominating the public agenda and the resources of governments.
GRAFT: COVID-19 Implications
9 April 2020 | Pandemic Response
The world has been at the edge of a tipping point for over a year. Spread of viral disease was the risk that toppled the market, closed businesses and borders, made remote work a norm, and unfortunately has taken an unprecedented number of lives. The interrelationship of Global Risks and Trends outlines the path that led the world to its current state, and provides a framework for identifying the implications of COVID-19, and the path forward.
COVID-19 and 3rd Party Suppliers: Questions Risk Managers Should be Asking
9 March 2020 | Pandemic Response
Given the significant and increasing reliance on outsourcing and 3rd party supplier relationships in the financial services sector, risk managers should also be evaluating potential impacts on service levels from developments relating to the COVID-19 situation. This brief covers the questions to ask of your own institution, and your 3rd party suppliers.
Risk Management Has Moved to the Top of the House – Women Should Move with It
9 March 2020 | Risk Management Practices
In response to the fast-changing conditions and expectations in today’s financial markets, risk leaders need to be more proactive than ever before. We have entered the era where leaders will not be able to access the C-suite or board if they haven’t had a stint in risk management.
Climate Risk and Sustainable Finance – Outlook for 2020
17 January 2020 | Sustainable Finance and Climate Risk
Recognition of the risks and opportunities associated with climate change reached new peaks across financial markets in 2019. But where to from here? From big picture global forces right down to expected milestones in the Canadian financial sector, here are five big trends that will shape the climate risk and sustainable finance space in 2020
Artificial Intelligence/Machine Learning: The CRO’s Agenda
19 December 2019 | Technology Innovations
Around the world, there is a steady increase in people searching for “Artificial Intelligence” and “Machine Learning” on the internet. With this increase in public interest, what is important for CROs and financial executives to understand from this?