Though crude oil prices edged up last week, the market remains well below VirtualOil’s original $50 strike price, meaning the hypothetical portfolio’s production is shut in in the spot market again. Oversupply continues while China GDP forecasted growth is slowing. Given the market outlook, the VirtualOil board has decided to
Going Beyond Regulatory-Mandated Tests to Achieve True Risk Management I regularly hear banking customers talk about ‘sweating their assets’ - leveraging their substantial investments in expanded teams of risk analysts, re-engineered processes and new risk systems for Basel II and III compliance – to gain better insights into their business.
Stress testing is not new to the risk world but has been a major focus since the GFC (Global Financial Crisis). For a number of years now, stress testing has helped analytical specialists quantify various aspects of potential loss. What is new is the introduction of regulatory stress tests which
I had the opportunity to moderate a roundtable discussion on risk management at the International Institute for Analytics’ (IIA) winter symposium in Orlando earlier this month. I set the stage for the session with a brief overview of my favorite risk approach, “Competing on Value”, by Mack Hannan and Peter
In this Innovation Inspiration, a SAS user has developed the insurance rating plans for a country using predictive modeling. How exciting! Additionally, the system adjusts based upon actual experience. This is quite the accomplishment given the complexity of the ratemaking for even a small geographical territory. The comments section reveal the identity of this innovator. Check it out.
“When I started using predictive analytics in 1991, I had a desktop computer with a 600 megabyte hard drive running SAS® 5.0 something,” said Olivia Rud, respected business intelligence thought leader and author of Data Mining Cookbook: Modeling Data for Marketing, Risk and Customer Relationship Management. Technology has vastly improved
