Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations
7 September 2017 | Regulatory Compliance and Financial Stability
At the GRI we expect the transition to IFRS 9 to present challenges to the various stakeholders. There is a clear need for education and discussion across the financial services industry as we approach the implementation date this November. In this paper we focus on the implications of IFRS 9 going forward, particularly as Canadian banks are required to “go live” in November.
6 September 2017 | Systemic Risk
This paper develops a framework to analyze the consequences of alternative designs for interbank networks, in which a failure of one bank may lead to others.
2 August 2017 | Climate Change and Environmental Risks
Throughout his campaign for the U.S. presidency, Donald Trump expressed skepticism about climate change and promised to repeal Obama-era climate policies. On June 1, 2017, President Trump made good on one of his biggest climate-policy promises by announcing that the United States would withdraw from the Paris Agreement. This paper discusses the impacts of this decision.
25 July 2017 | Risk Management Practices
This paper includes an examination of the risks associated with continuation of the workplace gender gap, and the rewards for firms that achieve gender diversity. It makes a case for dedicating a portion of parental leave exclusively for men, on the basis that gender equality at home is a prerequisite for gender equality at work. Other recommended actions to foster gender equality are also included.
21 July 2017 | Regulatory Compliance and Financial Stability
Although regulatory rules for derivatives margin requirements have not yet been implemented they are currently under active discussion. In the USA, margins of derivative positions cleared by a central counter-party (CCP) must adhere to the 2010 Dodd-Frank Act, which reinforces the role of their supervision by the Securities Exchange Commission and the Commodity Futures Trading Commission. In Europe, EMIR regulations will require more stable margin requirements and an increased confidence level for CCP losses when a client defaults.
10 July 2017 | Risk Management Practices
A Comparison of Survey and Incentivized-Based Risk Attitude Elicitation Authors: Jim Engle-Warnick, Diego Pulido, and Marine de Montaignac Related Project: Behavioral Finance The Global Risk Institute funded this research along with the preparation of this paper. Download Summary: A Comparison of Survey & Incentivized Based Risk Attitude Elicitation EXECUTIVE SUMMARY One of the duties of financial... View Article
4 July 2017 | Cyber security and Fraud
On April 11th, Duo Security and the Global Risk Institute (GRI) co-hosted an executive breakfast in Toronto to provide an update on current security trends and key information that leaders need to know.
19 June 2017 | Risk Management Practices
The cost of natural disasters is a major risk for insurers. Recent examples of major catastrophic events, and the associated losses, include Hurricane Katrina ($84 billion), the 2008 Sichuan earthquake ($148 billion), the 2011 Tohoku earthquake and tsunami in Japan (more than $300 billion) and Hurricane Sandy ($75 billion).
6 June 2017 | Technology Innovations
With this article we are kicking off a focus on the usage of Big Data and Advanced Analytics in the area of anti-moneylaundering (AML). AML has been a particularly difficult solution for global banks as the evolving regulatory standards call for banks to be able to readily monitor all transactions across the firm, which requires an in-depth knowledge of their clients and their clients’ counterparties (and often times the correspondent banks).
23 May 2017 | Climate Change and Environmental Risks
In this paper, we estimate the term structure of discount rates for an important risky asset class, real estate, up to the very long horizons relevant for investments in climate change abatement. We show that this term structure is steeply downward-sloping, reaching 2.6% at horizons beyond 100 years. We explore the implications of these new data within both a general asset pricing framework that decomposes risks and returns by horizon and a structural model calibrated to match a variety of asset classes.