Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations
13 September 2018 | Cyber security and Fraud
It has been said that data is the new oil, and if that is the case, your clients could be sitting on a significant unclaimed reservoir. Helping clients claim their rightful ownership of data assets could enable them to both harvest value and enhance their cyber security.
13 September 2018 | Technology Innovations
In this paper we discuss smart contracts - computer programmes running on top of a blockchain. We start with some intuitive examples that demonstrate the concept of a smart contract and then consider the Ethereum platform, the most notable platform for decentralized applications. We also outline some applications of smart contracts and discuss associated risks.
27 August 2018 | Risk Management Practices
The trend of increasing Cyber Dependency has been highlighted by the World Economic Forum as one of the most impactful trends changing society today. Organizations must be able to view digital innovations and their dependency on them in a systematic way to truly visualise that which is a threat and that which may signal opportunity.
27 August 2018 | Systemic Risk
Since the last financial crisis, numerous attempts have been made to identify and measure the systemic risk of financial institutions. In this paper, we develop a framework for the optimal portfolio choice based on an exogenous systemic risk measure.
7 August 2018 | Risk Management Practices
This paper explores how firms can benefit by exploring stress testing to examine a wide array of issues. Additionally, Mr. Talwar and Mr. Turnbull explore the value of stress testing to senior executives, board members and probably most particularly to the Risk Management Committee. The authors conclude with the Top 10 Questions Board members should consider when reviewing stress scenarios with Senior Managements.
7 August 2018 | Pension Industry
Which Canadian hedge fund strategies minimizes downside risk during traditional market declines? Which strategies are most correlated with traditional broad market indices and to other strategies? These are typical questions that form the basis of any due diligence process of hedge funds and which this article addresses. We examine the potential diversification risks to the selection of hedge fund strategies.
19 June 2018 | Pension Industry
This paper proposes to use an ultimate forward rate (UFR) method to extrapolate the corporate yield. This is a subjective method that extrapolates the liquid market interest rates such that they converge in the long run to an unconditional ultimate forward rate.
4 June 2018 | Technology Innovations
This paper provides a non-technical introduction to blockchain technology using cryptocurrencies as an illustrative example. We describe the mechanics of blockchain and outline some risks associated with the existing cryptocurrencies.
4 June 2018 | Technology Innovations
Research in the field of Artificial Intelligence (AI) is growing exponentially, and as a result, applications of the technology in different industries are constantly being discovered. This paper explores how AI can be applied to the field of fund management, and specifically, how it can be used to manage active funds.
23 May 2018 | Risk Management Practices
This article is the first in a series that will focus on applying risk correlations to further a robust approach to the management of emerging risks. It applies the correlation matrix from the Global Risks and Trends Framework (GRAFT) to a specific topic in order to highlight risk interdependencies, and to assist in the analysis of strategic implications.