Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations
24 January 2019 | Impact & Use of Leverage
This article discusses use of leverage in the context of defined benefit pension plan investment. It defines the term leverage, discusses how leverage creates value using a simple one-period model and stylized market assumptions, examines risks associated with using leverage and reviews methods and best practices to mitigate and manage these risks.
16 January 2019 | Cyber security and Fraud
This publication provides an extension of our work on estimating the real-world effort it will take for a quantum computer to compromise symmetric cryptographic functions at the foundation of protecting our ICT infrastructure.
7 January 2019 | Risk Management Practices
2018 marks the third year of the Global Risk Institute’s annual Risk Outlook Survey of our member organizations’ risk outlooks for the coming year. The results of this survey provide insights into our members’ views on key risks, on the stability of their individual institutions and the overall Canadian financial system, and on the strength of major global economies. Survey responses were obtained from a range of financial institutions including banks, insurance companies, and pension funds.
6 December 2018 | Geopolitical
This report moves beyond traditional approaches to risk management in the financial services industry and focuses specifically on understanding political uncertainty. It uses the renegotiation of the North American Free Trade Agreement (NAFTA) as a case study to illustrate the value of social scientific theory when analyzing multilateral negotiations.
6 December 2018 | Risk Management Practices
Are Emerging risks foreshadowing a Systemic Risk Event? In this paper, we do a comparison of the GRAFT matrix over several years to gain insight into potential systemic changes that may be on the horizon.
19 November 2018 | Risk Management Practices
This article focuses on the challenge of changing organizational and sub-unit cultures to better manage the many forms of cultural risk (see sidebar) and thereby improve organizational performance. We propose that a focus on key character dimensions in all employees, but specifically those in risk leadership roles, will result in accelerated culture change, improved risk management and better organizational outcomes.
14 November 2018 | Technology Innovations
In this report, we draw from a wide range of sources to provide a comprehensive overview of the global digital lending landscape. We survey recent growth trends of peer-to-peer (P2P) and other forms of alternative lending that have been enabled by digitization, and compare and contrast the major digital lending markets around the world.
6 November 2018 | Geopolitical
Canadian financial service professionals have watched negotiations with a keen eye to see what changes could be made to the original NAFTA provisions and what the possible implications might be for the industry. With an agreement in place, it is possible to begin to evaluate the new elements of the USMCA and point to the kinds of first and second-order effects of which financial risk managers should be aware.
5 November 2018 | Cyber security and Fraud
Managing the Risk of Web Security Author: Henry Harrison, Co-founder & CTO of Garrison Technology The author is an independent contributor to the Global Risk Institute and is solely responsible for the content of the article.
15 October 2018 | Climate Change and Environmental Risks
In view of the recent turmoil caused by international trade negotiations, we can view climate change policy in a game theoretic setting. In other words, although the major players may benefit from global emission reduction, there is a natural tendency to engage in climate policy as a strategic game. In this report, we study three different climate change games and compare with the outcome of choices by a Social Planner.