Research

We emphasize and encourage links between academic researchers and practitioners at financial institutions to bring theoretical techniques to bear on real-world issues.

Macroeconomic Risk

Macroeconomic risk derives from the behaviour of industries and governments and the relationships between them rather than from individual companies. It concerns fiscal and monetary policies, trade and investment flows and political developments on a national and international scale, and the effects of these factors on financial portfolios and company valuations. Intermediate variables of particular importance to macroeconomic risk include equities and commodities markets, business cycles, unemployment, inflation, interest rates, prices, and exports/imports.

GRI seeks to support our members as they refine and supplement existing risk management practices in response to changing macroeconomic conditions.


Reimagining “NAFTA 2.0”

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.

United States-Mexico-Canada Agreement

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.

Equity Holding Preferences of U.S. based Insurance Companies in Low Interest Rate Periods

Equity Holding Preferences of U.S. based Insurance Companies in Low Interest Rate PeriodsRelated Project: Optimal and Actual Asset Allocation Decisions in Protracted Low Interest Rate PeriodsAuthor: C. Krishnamurti, N. Papagiorgiou, F. RadmehrProfessor Chandrasekhar Krishnamurti is the lead research contributor for the Global Risk Institute on Optimal and Actual Asset Allocation Decisions in Protracted Low Interest Rate Periods…. View Article

Optimal and Actual Asset Allocation Decisions in Protracted Low Interest Rate Periods

Optimal and Actual Asset Allocation Decisions in Protracted Low Interest Rate Periods The project conducts an empirical study of the aggregate asset allocation decisions of Canadian, UK and US life insurance companies and pension funds. The project addresses three questions: 1. When making asset allocation decisions, do institutional investors react to changing economic conditions, including… View Article

Low for Long

Low for Long This research analyses the response of pension funds to the prolonged low-interest rate environment. This was achieved by; Looking at what different pensions have actually done since 2008; Determining what the response should have been based on strategic asset allocation models that acknowledge possible changes in the interest rate regime; Examining the… View Article