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STUDIES | RISK MANAGEMENT

Foreign Exchange Market Survey

Credit Suisse

VIEWS ON THE FOREIGN EXCHANGE MARKET TRENDS – RESULTS OF THE 2019 CLIENT SURVEY

The Credit Suisse study on exchange rates and currency hedging surveyed 766 companies on the topic of currency management. The survey shows: The majority hedges currency risks completely or partially. Learn more about the reasons in the attached report. >more


Global Risk Management Survey 2018

Deloitte

GLOBAL RISK MANAGEMENT SURVEY: 11TH EDITION

The 11th edition is the latest edition in this ongoing survey series that assesses the industry’s risk management practices and the challenges it faces. The survey was conducted from March 2018 to July 2018 and was completed by 94 financial institutions around the world that operate in a range of financial sectors and with aggregate assets of US$29.1 trillion. The report shows that financial organizations face challenges from nonfinancial risks such as cybersecurity, model, third-party, and conduct risk—as well as looming economic dangers that will require institutions to rethink their traditional risk management approaches. >more


Digital Transformation

Ernst & Young

ACCELERATING DIGITAL TRANSFORMATION - FOUR IMPERATIVE FOR RISK MANAGEMENT

The technology revolution demands that every bank reinvent itself, and risk management has a critical role to play in this transformation. This is the core finding in our latest bank risk management survey, Accelerating digital transformation: four imperatives for risk management, a collaborative effort between EY and the Institute of International Finance. >more


Solvency II

Neuberger Berman

OPTIMIZING CURRENCY EXPOSURES UNDER SOLVENCY II

The Solvency II Directive (2009/138/EC) imposes a specific solvency capital charge on currency mismatches between insurance companies’ assets and liabilities. Most insurers choose to hedge the bulk of their foreign-currency exposures unless they hold a particularly strong view on currency valuations, but a 100% hedge will almost certainly fail to yield the best volatility-adjusted portfolio returns over time. >more


Market Risk Insights

Hermes Investment Management

MARKET RISK INSIGHTS: BEFORE THE LUCK RUNS OUT

Polar exploration has been a recurrent theme for Market Risk Insights over the last year or so, perhaps inspired by the parallels investors now face as they trudge out into largely unmapped territory featuring extreme financial conditions. In the short term at least, most investors are expecting a temperate environment: not too hot, not too cold. Nonetheless, they must – taking a cue from the Norwegian explorer of the South Pole, Roald Amundsen – consider the likelihood of a number of future scenarios and plan accordingly. >more


Currency Hedging

BlackRock

GETTING A GRIP ON FX: INSIGHTS ON CURRENCY HEDGING AND RISK

This report brings together BlackRock experts to map out methods of identifying and managing FX risks. The main takeaway from the discussions: BlackRock experts generally see FX as a portfolio risk that needs careful assessment and management, rather than as an opportunity to generate additional returns. >more


Taking Advantage of Risk

The Boston Consulting Group

TAKING ADVANTAGE OF RISK

Many companies do a good job of analyzing and planning for competitive risks, but they give only pro forma attention to non-competitive uncertainties. Rising complexity exacerbates the types of risk that companies face, and volatility amplifies the potential impact. >more


Global Banking Risk 2017

The Boston Consulting Group

GLOBAL RISK 2017: STAYING THE COURSE IN BANKING

Nearly a decade after the financial crisis, the global banking industry has largely recovered, but risk management and regulatory compliance remain tall hurdles. >more


Blockchain

KPMG

SECURING THE CHAIN

In this report, KPMG examines two recent high profile blockchain incidents in which the attackers exploited security vulnerabilities while the blockchain networks and their underlying infrastructure continued to function as intended. >more


Risk in Financial Services

Deloitte

THE FUTURE OF RISK IN FINANCIAL SERVICES

This Deloitte Global report urges financial institutions to rethink and transform the way they manage risk to leverage emergent technologies, and increase risk management productivity and effectiveness. The report describes six imperatives that institutions must consider to become more dynamic and capable of responding to new developments. >more


Risk Management Strategies

KPMG

SAFEGUARDING PRIVATE EQUITY FIRMS: SIX KEY RISK MANAGEMENT STRATEGIES TO HEAD OFF TROUBLE

By creating a robust risk management plan, executives at private equity firms and their portfolio companies can increase the probability that their organizations will be able to withstand the impact of a potential crisis, regardless of its nature. Failure to implement an appropriate program can end up costing your firm a far greater loss of resources, value, and reputation. >more


 

State of Risk Management Survey

Deloitte

GLOBAL RISK MANAGEMENT SURVEY: 10TH EDITION

This is already the 10th edition of Global risk management survey, the latest installment in Deloitte’s ongoing assessment of the state of risk management in the global financial services industry. The survey findings are based on the responses of 77 financial institutions from around the world and across multiple financial services sectors, representing a total of $13.6 trillion in aggregate assets. >more


 

Hedge

Ernst & Young

IN SEARCH OF THE PERFECT HEDGE

A period of global currency volatility has been prolonged by the UK’s decision to leave the European Union. The response of CFOs to this market turbulence has centred on a range of hedging strategies. >more


EU-wide Stress Test

European Banking Authority

2016 EU-WIDE STRESS TEST

The European Banking Authority (EBA) recently published the results of the 2016 EU-wide stress test of 51 banks from 15 EU and EEA countries covering around 70% of banking assets in each jurisdiction and across the EU. The objective of the stress test is to provide supervisors, banks and other market participants with a common analytical framework to consistently compare and assess the resilience of large EU banks to adverse economic developments. Along with the results, the EBA is providing again substantial transparency of EU banks' balance sheets, with over 16,000 data points per bank, an essential step towards enhancing market discipline in the EU. >more


 

Forecasting Bond Spreads

IMF

HOW DO EXPERTS FORECAST SOVEREIGN SPREADS?

This paper assesses how forecasting experts form their expectations about future government bond spreads. Using monthly survey forecasts for France, Italy and the United Kingdom between January 1993 and October 2014, we test whether respondents consider the expected evolution of the fiscal balance—and other economic fundamentals—to be significant drivers of the expected bond yield differential over a benchmark German 10-year bond. Our main result is that a projected improvement of the fiscal outlook significantly reduces expected sovereign spreads. This suggests that credible fiscal plans affect market experts’ expectations and reduce the pressure on sovereign bond markets. In addition, we show that expected fundamentals generally play a more important role in explaining forecasted spreads compared to realized spreads. >more


 

Global Risk Management

Ernst & Young

RETHINKING RISK MANAGEMENT

"Re-thinking risk management: Banks focus on non-financial risks and accountability" is the sixth annual study of risk management practices conducted by EY in cooperation with the Institute of International Finance (IIF) since the financial crisis. A total of 51 firms across 29 countries participated in this year’s study. >more


OTC Derivatives

Deutsche Bank Research

REFORM DER OTC-DERIVATEMÄRKTE

This Deutsche Bank note discusses first effects and open questions with respect to the reform of the OTC derivatives markets. >more


Risk Management in Corporations

The Boston Consulting Group

THE ART OF RISK MANAGEMENT

This study of BCG discussess the role of risk management in the aftermath of the Global Financial Crisis and highlights the increasing strategic importance of risk management for value creation in corporations. >more