Publications

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

Publication Library


Article

Model Risk Management in the Current Pandemic Environment

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.

Academic Final Report

The Canadian Pension Fund Model: A Quantitative Portrait

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.

Academic Final Report

Risk Shifting Versus Risk Management: Canadian Pension Plan Liability Discount Rates

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.

Industry Report

Forced Retirement Risk and Portfolio Choice

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.

Article

Canadian Bank Dividends: Income Importance During and Beyond the Pandemic

This article explores the benefits of Canadian bank dividends, beginning with two areas that are often too little recognized. The first is the significance of Canadian bank dividends to sustaining household cash flow and liquidity, including their rising share of retail investor incomes, attractive absolute and relative yields, and dependability. The second is the crucial role of bank dividends in seniors’ incomes, including the structural trends boosting their importance in funding retirees’ spending needs.

Industry Report

Canadians’ Preparation for Retirement (CPR)

In this report, we present and describe a comprehensive stochastic retirement income calculator (Canadians’ Preparedness for Retirement, or CPR) that will be made available to the general public in the near future.

Academic Final Report

The Impact of Derivatives on Cash Markets: Evidence from the Introduction of Bitcoin Futures Contracts

According to industry research, total cryptocurrency derivatives trading volume in futures, options, and swaps surpassed $3 trillion USD in 2019. In this research we study whether the introduction of cryptocurrency derivatives is beneficial or detrimental to the underlying cryptocurrency spot markets.

Academic Final Report

Assessing the Exposure of Critical Infrastructure and other Assets to the Climate Induced Failure of Aging Dams in the U.S.

GRI's research partnership with the Columbia Water Centre has explored how the aging of dams, and the factors of climate change increase the risk of dam failures. The research has highlighted the many impacts that a dam failure can have on assets, highlighting the importance for the financial sector to assess their lending, insurance or investment portfolios for climate risk.

Announcement

Racial Diversity, Equality and Rebuilding Community Trust

Boards and CEOs need to rebuild the trust amoungst workers in general and minority groups in particular. The only way to rebuild this trust is to ensure that voices are heard and real change is made.

Article

The European Union Sustainable Finance Taxonomy: Implications for Canada

The European Union Sustainable Finance Taxonomy has arrived! What is it, and why should Canada care? One of the missing critical catalysts for kick-starting the sustainable finance industry has always been a comprehensive, science-based classification system creating a common language for sustainable investments. On March 9, 2020, the EU Sustainable Finance Taxonomy was released. It fills that critical void and is a genuine game-changer.