Description: Feature article discussing the four main perspectives of ERM.

Description: The IFRS Foundation’s establishment of the International Sustainability Standards Board is a major step toward achieving relevant, decision-useful sustainability information for market participants that is comparable across industries and jurisdictions.

Description: The IFRS Foundation’s establishment of the International Sustainability Standards Board is a major step toward achieving relevant, decision-useful sustainability information for market participants that is comparable across industries and jurisdictions.

Description: Feature article that discusses how insurance and banking business models have continued to grow in complexity over the past 50 years—from simple and local risk exposures to the current environment of complex and global exposures

Description: The upside of the downturn is that these powerful, influential, connected and important, yet incompetent people can be removed from their positions. To quote a great insight of Ayn Rand: “There is no substitute for competence.”

Description: Models are imperfect approximations of reality. Once a bubble has been recognized, that’s the time for mechanisms of caution and prudence to kick in, even in the face of exuberance – especially in the face of exuberance. Liquidity and trust is plentiful until it’s not – it can evaporate with blazing speed and only returns slowly. Risk is contagious, which means every single employee and citizen has a vested interest in taking on the role of chief risk officer.

Description: The new ways of calculating capital requirements are relatively untested. We may be witnessing the results of such a test today. As of this writing, the global economy is almost surely entering a serious recession. One of the reasons for this appears to be inadequate capital provisioning. The failure of capital regimes to protect financial entities and, by extension, their customers has had unfortunate effects on the markets and economies of the world.

Description: Financial crises are nothing new. What is unique and sobering is the far greater speed with which the current situation has evolved from a weakening of the U.S. housing market into a full-blown, global economic meltdown. Also new this time is how quickly the fallout spread beyond the financial sector into all areas of the economy. Advanced communications and information technologies are creating an era of greater risk with more serious and far-reaching consequences when compared with even the recent past.

Description: This article provides background and key results of the Risk Premium Project of the Committee on Theory of Risk [DOTOR] of the Casualty Actuarial Society [CAS]. The project is intended to gather research on risk issues and encourage further development.

Description: The crisis has spread due to a systematic failure of the regulatory system. Over the last 20 years, regulations that fostered market stability were eliminated and new financial instruments were allowed to propagate without any real oversight. Instead of bailing out weak financial firms, we should be liquidating them. All doubtful assets need to be written-downs. We need accurate and transparent accounting. Government can help in this effort by cleaning up our accounting system. But it needs to stop being an investor propping up those that should be in the morgue. It needs to conservatively regulate all financial instruments. It should foster liquidity and stoke demand.