Description: Le problème et le plus grand défi que posent la détermination et la gestion du risque systémique se situent dans le fait que les activités à risque élevé et les entreprises à risque élevé ne sont souvent identifiées qu’en rétrospective. Dans le présent article, nous définissons les facteurs de risque et nous proposons un cadre de gestion du risque systémique qui peut être appliqué à l’avance par les organismes de réglementation, la direction de l’entreprise et d’autres parties prenantes.

Description: it discusses the framework and modeling of the market consistent valuation of fixed indexed annuity, against the backdrop of the convergence of accounting standards and internal risk management.

Description: This is the second of a two-part article introducing and elaborating an “Adaptor” strategy for ERM. Such a strategy is intended to fulfil two purposes: first, switching among four styles of risk-coping strategies in order to track qualitative changes in a business’s risk environment; and, second, to support the business in navigating with resilience through all the seasons of a business-economic cycle, i.e., of boom, bust, moderate, uncertain. This latter requires careful study of the nature of resilience, the familiar idea of bounce back, and the less familiar idea of bounce forward. Part I of our article is underpinned therefore by a supplementary document (available from https://riskviews.wordpress.com/adaptor-exceptionalism/), which addresses the issue of structural change in a business or economy. It draws heavily on ideas taken from the discipline of control engineering, as well as some from ecology, social anthropology, and economics. The entire two-part article is thus an exercise in cross-disciplinary Systems Thinking.

Description: Strategic Risk Management was given lower priority in a recent survey of ERM Objectives. This article tells how the author believes that recent events have caused many to shift to a more short term focus and in the future there will be a shift back to a priority for the longer term view that stands behind Strategic Risk Management when the environment settles down and things again seem to be more predictable.

Description: Duration matching is a risk management strategy, commonly used in the insurance industry, where the duration (price sensitivity to a yield curve movement) of an asset portfolio is adjusted to be made equal to the duration of the liability. However, this approach has flaws. In this essay, I note some key failures of duration matching and offer a potential alternative.

Description: Combinations of risks are an important component of the Survey of Emerging Risks, now in its 15th iteration. Also known as risk clusters or compound risks, the most popular in the survey define threat multipliers, where a risk makes other risks worse. The top risks chosen are trended for the last 10 years, showing interesting cycles and discontinuities.

Description: An update to the risk management readers on what the JRMS is planning to do over 2023 to serve its membership.

Description: Since most cash flows being discounted in the value calculation are dependent on the forward rates, in the key-rate calculation forwards (not spots) should be shifted. I will show that if spots are shifted up/down, they would not necessarily result in forwards being up/down for all the years in the particular key rate, resulting in unexpected results. I will further show how metrics calculated by shifting forwards versus spots enhance the accuracy of the approximation of projected value in various rate environments.

Description: The Joint Risk Management Section's chairperson explains the Joint Risk Management Section Council members plans for the coming year, with a heavy focus on research and continuing education.

Description: This article explores how simple climate targets are driving paper decarbonization, which has serious unintended consequences. Risk managers must keep this in mind and choose metrics carefully to do their part in the climate transition.