Global Risk Institute is a preeminent source of ideas on the management of emerging risks and trends for financial services organizations
21 August 2019 | Climate Risk and Sustainable Finance
The overall goal of this study is to develop a framework for rapidly assessing the hazard (i.e. the probability and magnitude of a dam failure) and the exposure (what gets affected by a failure), scalable over many regions for a preliminary ranking of the priority areas of concern. The intended application is for a portfolio level risk analysis by investors, asset managers, and insurance providers.
21 August 2019 | Cyber security and Fraud
Recent headlines about cyber-attacks and massive data breaches are revealing the fragility of the digital infrastructure and the impossibility of assuring the integrity of computer systems, even for organizations such as financial institutions that maintain the most mature cyber security programs.
21 August 2019 | Technology Innovations
A recent surge of interest in Machine Learning (ML) tools within the financial services industry has exposed many challenges of ML applications in financial modelling
10 July 2019 | Financial Stability and Regulatory Compliance
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.
10 July 2019 | Technology Innovations
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.
5 June 2019 | Climate Risk and Sustainable Finance
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.
15 May 2019 | Climate Risk and Sustainable Finance
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.
15 May 2019 | National Pension Hub Publications
This paper for the National Pension Hub develops a robust self-financing hedging portfolio to replicate the ultra-long dated (more than 30 years) liability in incomplete bond markets.
15 May 2019 | Geopolitical
In the race to innovate, the geopolitical determinants of big data, AI and 5G are critical to the financial services industry. Emerging technologies like Big Data, Artificial Intelligence and 5G telecommunications are of critical importance to the financial services industry, underpinning new products and services and transforming operational processes.
1 May 2019 | Risk Management Practices
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.