Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations
3 October 2019 | Cyber security and Fraud
The 'quantum race' is on and the race course and timeline are partially unknown. The creation of a scalable, fault-tolerant quantum computer that poses a significant risk to cyber security may be closer than we think. Although quantum attacks are not here yet, critical decisions need to be made today in order to respond to these threats in the future.
3 October 2019 | Cyber security and Fraud
The Distribution Analysis for Information Risk (DAIR) is a cyber quantification methodology that maps cyber events with a hierarchical risk taxonomy to evaluate operational, business & systemic risk economic capital. DAIR will help organizations quantify cyber risk in a consistent and meaningful way, giving consideration to asset vulnerabilities as well as business and systemic considerations.
20 September 2019 | GRI Summit
Our 2019 GRI Risk Summit- Dynamic Risk-A Shifting Landscape- is a wrap, and dynamic it was! From our panel on Open Banking- with lessons learned from our friends in the U.K. and Australia. To the insights from our keynote speaker on the future of the Canada- U.S. Relationship and the explorations of cyber risk, artificial intelligence & sustainable finance - the dialogue was stimulating and provocative! We took some time to think about our own profession, and what talent we will need to face the future head on. The high energy “Big Ideas and Bold Perspectives” discussing the perils of global investing, the digital future of financial services, and rethinking financial risk in an area of climate change, were astounding hits. Finally, our Chief Risk Officer best practice panel - always a perennial favourite- lived up to its billing! Thank-you to all who participated, spoke at our conference, moderated panels, and the team that took care of every detail. The conference was once again an unqualified success.
21 August 2019 | Cyber security and Fraud
Recent headlines about cyber-attacks and massive data breaches are revealing the fragility of the digital infrastructure and the impossibility of assuring the integrity of computer systems, even for organizations such as financial institutions that maintain the most mature cyber security programs.
21 August 2019 | Technology Innovations
A recent surge of interest in Machine Learning (ML) tools within the financial services industry has exposed many challenges of ML applications in financial modelling
10 July 2019 | Financial Stability and Regulatory Compliance
The balance between risk and return has been at the center of portfolio construction methodologies. Although the asset allocation literature has primarily focused on a firm's individual risk, the Global 2007-2009 financial crisis highlighted the importance of accounting for systemic events, i.e., extreme forms of risk that can have severe consequences on the financial system.
10 July 2019 | Technology Innovations
To many financial industry insiders, tokens have no intrinsic merit and exist only as a way to evade regulations. We demonstrate that generic revenue-based token contracts are indeed economically inferior to equity and lead to over- or under-production.
5 June 2019 | Climate Change and Environmental Risks
The Society of Actuaries (SOA) Climate and Environmental Sustainability Research Committee awarded Sally Shen, Research Associate, Global Risk Institute, first prize for her three page essay "What Makes Green Investment a Puzzle" in May 2019. This essay argues that the myth behind the motivation of green investment is driven by both unknown knowns and unknown unknowns.
15 May 2019 | Climate Change and Environmental Risks
Nearly a third of the dams fail due to overtopping, an event whose likelihood increases as the potential for severe storms increases. Aging dams and levees, in combination with an increasing frequency of climate extremes pose an unprecedented risk to communities around the world. The financial risk associated with the failure of such assets is unmapped.
15 May 2019 | Discount Rate
This paper for the National Pension Hub develops a robust self-financing hedging portfolio to replicate the ultra-long dated (more than 30 years) liability in incomplete bond markets.