Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations
7 August 2018 | Pension Industry
Which Canadian hedge fund strategies minimizes downside risk during traditional market declines? Which strategies are most correlated with traditional broad market indices and to other strategies? These are typical questions that form the basis of any due diligence process of hedge funds and which this article addresses. We examine the potential diversification risks to the selection of hedge fund strategies.
19 June 2018 | Pension Industry
This paper proposes to use an ultimate forward rate (UFR) method to extrapolate the corporate yield. This is a subjective method that extrapolates the liquid market interest rates such that they converge in the long run to an unconditional ultimate forward rate.
4 June 2018 | Technology Innovations
This paper provides a non-technical introduction to blockchain technology using cryptocurrencies as an illustrative example. We describe the mechanics of blockchain and outline some risks associated with the existing cryptocurrencies.
4 June 2018 | Technology Innovations
Research in the field of Artificial Intelligence (AI) is growing exponentially, and as a result, applications of the technology in different industries are constantly being discovered. This paper explores how AI can be applied to the field of fund management, and specifically, how it can be used to manage active funds.
23 May 2018 | Risk Management Practices
This article is the first in a series that will focus on applying risk correlations to further a robust approach to the management of emerging risks. It applies the correlation matrix from the Global Risks and Trends Framework (GRAFT) to a specific topic in order to highlight risk interdependencies, and to assist in the analysis of strategic implications.
23 May 2018 | Risk Management Practices
Investors are often encouraged by financial advisors to “roll-over” their 401(k) into Individual Retirement Accounts (IRAs). This work investigates the soundness of this investment advice and analyzes the diversification of large 401(k)-type plans that offer five basic investment options.
2 May 2018 | Technology Innovations
This report will consider several vantage points including that of the incumbent financial institution, the consumer, and the financial system as a whole. We will also offer some insight with regards to potential risk-mitigation strategies and commentary on the potential for fintech-related risks to become systemic.
2 May 2018 | Cyber security and Fraud
Cyber intrusion and cyber resilience are topics receiving tremendous attention, discussion and action currently and for good reason. Financial firms fend off millions of cyber threats daily. This paper frames the learnings from the most recent efforts to combat global, systemic risk – the 2008 Global Financial Crisis.
18 April 2018 | Systemic Risk
In this report the author provides the first comprehensive study of the collateral rule in the market of cleared credit default swaps by studying how margins depend on portfolio risks and market conditions, and what the implications are for theoretical models of collateral equilibrium.
18 April 2018 | Regulatory Compliance and Financial Stability
In this report the authors share their insights and identify some of the key changes and issues that the financial sector may be facing in the next few years as the use of open APIs becomes more ‘mainstream’.
