Risk.net - Financial Risk Management News Analysis
WEBOur new research service compares op risk practices at financial institutions – from staffing to AI safeguards, key controls to board reporting packs. Click here for selected highlights. Singapore. The world's leading source of in-depth news and analysis on risk management, derivatives and regulation.
Risk management news and analysis articles - Risk.net
WEBAI in banking risk management: exploring latest trends and use cases. The financial sector is abuzz with the potential of GenAI to revolutionise risk management. This Risk.net special report dives into some of the latest trends and use cases transforming this critical function for banks. 31 Jul 2024. Risk management.
Total loss-absorbing capacity (TLAC) definition - Risk.net
WEBTotal loss-absorbing capacity is an international standard, finalised by the Financial Stability Board (FSB) in November 2015, intended to ensure that global systemically important banks (G-Sibs) have enough equity and bail-in debt to pass losses to investors and minimise the risk of a government bailout. From January 1, 2022, G-Sibs are required to hold a TLAC amount of 18% in terms of risk ...
Managing Strategic Execution Risks - Risk.net
WEBJun 24, 2016 · The chapter discusses concepts, such as the strategic-execution risk-management framework (SERMF), introducing models to help manage the risks that will arise in the execution of all strategies. Strategic objectives and the importance of developing strategic key risk indicators (SKRIs) to monitor the progress of a strategy’s execution are ...
Credit linked notes - Risk.net
WEBSep 1, 2003 · Credit linked notes (CLNs) are debt instruments whose payments are tied to the performance of the debt obligations of selected entities or “reference entities” – ie, they are linked to the credit quality of the reference entities’ obligations. The cashflow promised to the holder of the CLN note depends on the occurrence of pre-specified ...
VAR versus expected shortfall - Risk.net
WEBMar 1, 2007 · Expected shortfall, like VAR, is a function of two parameters: N (the time horizon in days) and X % (the confidence level). It is the expected loss during an N -day period, conditional that the loss is greater than the X th percentile of the loss distribution. For example, with X = 99 and N = 10, the expected shortfall is the average amount ...
Liquidity risk definition - Risk.net
WEBIn the context of traded markets, liquidity risk is the risk of being unable to buy or sell assets in a given size over a given period without adversely affecting the price of the asset. The risk will be high if, for example, a large trade is being executed over a short period of time in an insufficiently liquid market. Some market participants have argued liquidity risk has become worse after ...
Journal of Risk Model Validation
WEBJun 6, 2019 · Modeling continues to play an increasing role in financial services. Indeed, as more and more data becomes available and the technology for using data becomes cheaper and more powerful, more sophisticated quantitative modeling and business analytics are spreading across the industry landscape.
Credit risk definition - Risk.net
WEBCredit risk is the risk of a borrower defaulting on a loan, or related financial obligation. Alongside market risk and operational risk, it is one of the three major classes of risk that banks face, and accounts for by far the largest share of risk-weighted assets (RWAs) at most banks. Banks use credit risk modelling to calculate the amount of capital to hold against credit losses.
Market risk definition - Risk.net
WEBMarket risk is the risk of losses on financial investments caused by adverse price movements. Examples of market risk are: changes in equity prices or commodity prices, interest rate moves or foreign exchange fluctuations. Market risk is one of the three core risks all banks are required to report and hold capital against, alongside credit risk and operational risk.
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