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Latest on Risk management
Industry to take up Fed’s white paper on cyber risk
Workshop will delve into definitions and classifications of the most chameleon of risks
HSBC’s Elhedery: banks must protect whistleblowers
Corporate culture must respect and reward complainants; compensation could help, says markets chief
Citi’s counterparty credit RWAs surge 12% in Q3
Bank has increased OTC derivatives exposures 15% year-to-date and repo exposures by 37%
Latest
Quotes
You have about a 48-hour window to report if – to be blunt – you’re to have any possibility of getting your money back. It’s highly unlikely afterwards
The FBI’s Richard Jacobs urges banks to swallow their pride and notify the Bureau’s IC3.gov reporting service immediately when they suffer a business email compromise attack
He looked at me and said: ‘I’ve got no idea what’s going on in this business. All I get is phone calls from people asking for more capital, and I don’t know why’
MarketAxess CRO Oliver Huggins recalls an early meeting with a senior director at insurer Prudential during his time as the firm’s risk lead
The firm that merges decadal climate models into traditional stochastic nat models will be the winner. They will be able to say, ‘We can attribute X storm, X flood to climate change,’ and the modelling would support it. It’s a trillion-dollar question.
Alison Martin, CRO at Zurich, on the industry’s struggles to accurately predict climate change-induced extreme weather events
Editor's Choice
Engle: rise in geopolitical risks may be overestimated
Risk USA: Nobel laureate’s new ‘Geovol’ model suggests geopolitical risk no higher than during past 20 years
Big Figure
Weathering the storm(s)
The difficulty of modelling natural catastrophes is getting more extreme with the march of climate change. Across the five largest loss events from 2018, average losses estimated by the market’s two largest providers of cat models – AIR ($15.75 billion) and RMS ($12.75 billion) – were roughly 65% below the true average loss figure of $40.3 billion.
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Comment
Banks feel chill of exposure from Fed’s SCCL
Europe’s new default rules: a defined benefit?
Our Take
Climate change spells death of certainty
Swiss banks ask, how about a magic trick?