Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations
15 October 2020 | National Pension Hub Publications
In this interim report on forced retirement risk and the link to investment portfolios, Minjoon Lee and his coauthors analyze the latest Canadian data and find that the correlation between stock returns and the chance of involuntary job separation is much stronger during the coronavirus crisis.
29 September 2020 | Pandemic Response
As Canada recovers in lopsided fashion from its historic economic contraction in the first half of 2020 (1H2020), the economic and social costs of the first-ever services-led recession are striking. The V-shaped recovery of equity and debt markets, and the surge in technology industries contrast starkly with the major income declines and job losses in much of the traditional economy. They make it essential to address the ongoing “Great Divide” among financial markets, technology sectors and most of the traditional economy.
25 September 2020 | National Pension Hub Publications
In this paper we adapt results from theoretical, stylized work on pension design, to explore a form of target benefit plan that allows for structured, transparent intergenerational risk sharing (IRS).
18 September 2020 | Macro-economic 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.
25 August 2020 | Technology Innovations
This research paper reviews the components of open banking, including APIs and screen scraping. The author discusses the implications for traditional banks, FinTechs and Third Party Providers (TPPs) within data-sharing frameworks. The paper then reviews the implementations in the U.K. and Australia, and the potential implications for Canada’s financial system.
21 August 2020 | Technology Innovations
This research report explains the tools commonly used in Machine Learning, identifies some of the challenges machine learning poses for financial institutions and formulates key questions that senior management should ask with respect to machine learning applications.
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.
20 August 2020 | National Pension Hub Publications
Between 2004 and 2018, Canadian pension funds outperformed their international peers both in terms of asset performance and liability hedging. This project shows a central factor driving this success is the implementation of a three-pillar business model that consists of i) managing assets in-house to reduce costs, ii) redeploying resources to investment teams for each asset class, and iii) channeling capital toward growth assets that increase portfolio efficiency and hedge liability risks.
5 August 2020 | National Pension Hub Publications
The design of a pension plan should reflect preferences of the stake holders and be resilient to economic, financial and demographic stresses. Observers have often assumed that moral hazard plays a role in pension fund asset allocation. However, based on our empirical findings, it is fair to highlight that, in Canada, discount rates are a reflection of risk preferences, rather than of regulatory structure or political incentives.
15 July 2020 | National Pension Hub Publications
Older workers in Canada and the U.S. face a significant risk of being forced to retire before their planned retirement ages. In this project, we examine the implications of this risk on late-in-life portfolio management.