Description: Full French version of Risk Management, March 2007, Issue No. 2007.

Description: Increasing uncertainties and volatility in financial as well as real goods markets increasingly reveal that controlling systems based on deterministic and pseudo-exact values are insufficiently eligible to manage the business activities. This raises the question how management systems can be modified to generate the adequate management impulses in volatile periods. Risk management deals from identifying, evaluating and aggregating chances and risks, which again determine the potential fluctuation range of relevant performance indicators. Everyday corporate life shows that risk management is considered important; but the corresponding processes to identify, evaluate and report chances and risks are seldom part of established decision criteria. This “paradox” lets assume that risks are managed in various differing and unsystematic ways. The combination of traditional controlling methods and risk management is not primarily a methodological challenge. The behavior of the whole organization, practiced over a long-year period, has to be transferred into a new corporate culture of transparent dealing with chances and risks. This paper describes the necessary change management process, which has to come along with necessary methodological modifications.

Description: This article introduces a non-traditional type of economic scenario generator that relies on dynamic stochastic general equilibrium (DSGE) models are complex macroeconomics models and have been increasingly popular in central banks for analyzing monetary policies.

Description: This article from A Year in the Life of the Strategic CRO series explains how to enhance the risk appetite to better support business planning discussions.

Description: Article provides a brief summary of the highlights from a survey completed in fall 2018 covering Emerging Risks. This is the 12th iteration of the survey and provides trends and qualitative comments from respondents on a variety of ER and ERM topics. Climate change and cyber risks continue to lead the responses.

Description: Article provides a brief summary of the highlights from a survey completed in fall 2018 covering Emerging Risks. This is the 12th iteration of the survey and provides trends and qualitative comments from respondents on a variety of ER and ERM topics. Climate change and cyber risks continue to lead the responses.

Description: What risks should ERM actuaries be working on?

Description: It is the belief of this author that the subprime mortgage mess was none other than a Ponzi scheme repackaged into 21st century financial engineering clothes. What makes this scheme particularly disastrous is that the 21st century Ponzi mortgages were packaged and sold to investors and then trillions of dollars of derivatives were constructed based on the underlying mortgages, magnifying the problem by orders of magnitude.

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: Three drivers that are often not at the top of lists about the origins of the crisis: a At some level, every entity that handles risks should be assessing what would happen if they ended up owning the risk that they thought they would only have temporarily b The change in the real estate market that was driven by the non-marginal amount of new subprime buyers who came into the market and c Risk managers should always be aware that marginal analysis can produce incorrect results.