Publications

Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations

Publication Library


Research Report

Systemic Risk Driven Portfolio Selection

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.

Research Report

Tokenomics: When Tokens Beat Equity

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.

Research Brief

What Makes Green Investment a Puzzle?

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.

Research Report

Climate Extremes, Aging Dams & Levees and Cascading Failure Impacts

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.

White Paper

The Geopolitics of Technology

In the race to innovate, the geopolitical determinants of big data, AI and 5G are critical to the financial services industry. A financial services provider must first understand the political dimensions of emerging technologies before it can assess the associated enterprise risks, test its resiliency and design appropriate governance strategies.

White Paper

Enterprise Risk Management Benchmarking Study: A Focus on Financial Institutions

The Global Risk Institute, in partnership with the Conference Board of Canada and the Chartered Professional Accountants of Canada, has conducted a benchmarking survey of enterprise risk management (ERM) practices across different industries. In the foreword, we highlight ERM practices in the financial services industry and discuss how they compare to other industries’ practices.

Research Report

Hedging Climate Change News

The climate is changing, but there is substantial uncertainty around the exact climate trajectory and as well as the economic consequences of climate change. As a result, investors around the world have a huge demand for hedging themselves against the realizations of climate risk.

White Paper

Ethics & Artificial Intelligence in Finance

From a financial institution’s perspective, AI offers a wide range of potential benefits, but one must ensure that the implementation of this technology is both prudent and ethical. To aid in the understanding of how this can be achieved, this report will introduce AI and detail issues of bias, interpretability, and data security and privacy as they relate to the ethical use of AI algorithms by financial institutions.

Research Brief

Unravelling the U.S. – China Trade Dispute

For the Canadian financial services industry, the trade war presents complex and ambiguous risks. Punitive tariffs and general market uncertainty induce volatility, disrupt supply chains, and disincentivize new investment in the short-term. The dispute also creates a more protracted challenge in that it holds the potential to shape the future political relationship between the U.S. and China and thus the global economic system over the long-term