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Show don’t tell: BoE’s climate stress test dilemma
Making the test easier to run could come at the expense of building risk management capacity
Bank disruptors: JP Morgan smashes silos
To foster innovation, the US banking giant rebuilds its culture by breaking boundaries
At CCPs, sovereign bonds are top IM collateral
Government debt makes up 48% of IM on average among top clearing houses
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
Outsourced model validation: is it viable?
Consortium promises cost savings in outsourcing model validation, but some say pooling doesn’t float
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.
Read the full article7 days in 60 seconds
Disruption, CCP default and the latest Libor problem
The week on Risk.net, January 18–24, 2020
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When the data’s not there, expert-led models could help
The end of the fintech gold rush?
Our Take
Climate change spells death of certainty
Swiss banks ask, how about a magic trick?