One of the lesser-known effects of COVID-19 has been on analytical risk models. Around the world, the pandemic has created a new reality. The situation became so unpredictable that financial institutions’ risk models lost their ability to make accurate predictions. Past performance, it turned out, was very definitely not a
Today’s business banking models are changing. Internal rating models enjoyed the spotlight for a long time, but new topics are already catching on. Machine learning and artificial intelligence are key new elements in addition to traditional techniques for model development. EU and international regulators have also taken an active interest
What precisely, then, is needed in risk management? Users want a user-friendly interface, so that they can find what they need.
Risk and finance teams know more about each other’s worlds than at any time since risk emerged from finance.
Banks increasingly face challenges that put pressure on the bottom line. In this post, I’ll focus on the threats that affect the risk departments of banks. In my view, there are three critical areas. The 3 core challenges 1. Regulatory and accounting demands The first is increased regulatory and accounting
Which topics and priorities will be the focus for chief risk officers in 2019? A range of experts and representatives of major banking institutions addressed these questions at a recent event, CRO and CFO Banking Agenda 2019, organised by CeTIF, the Research Center on Technologies, Innovation and Financial Services, in collaboration
The number of models used by large operators in the financial sector is increasing by around 10 to 25 percent per year. Most of the new models are designed to meet business needs, such as pricing, the definition of strategic plans and the management of liquidity. Some, though, are for
