OpenCPM NPL Database

First Release: OpenCPM NPL Database Further building out the OpenCPM set of tools, we took the Eupean Banking Authority’s recommended Non-Performning Loan templates and created an #opensource production grade database for capturing NPL portfolio data sets. Motivation for Building an open source database based on EBA’s Standardized NPL Templates In […]

Data Scientists Have No Future

Data Scientists have no future. Currently the working definition of a Data Scientist seems to be: “whatever it takes to get the job done in a digital #tech domain that we have long neglected but which is now coming back to haunt us” 🙂 That’s nice urgency while it lasts, […]

Four individuals that can look straight into your eyes

Here are four individuals that can look straight into your eyes * Torvalds developed the #linux operating system, the software engine now powering anything from the tiniest #raspberrypi to the scariest supercomputer. Humanity’s best guarantee that the digital era remains an equal playing field * Mullenweg developed the #wordpress blogging […]

Machine Learning Ballyhoo

Are you getting a bit tired with all the machine learning ballyhoo? You can blame it all on a German mathematician(*), Carl Friedrich Gauss, who started the futuristic “mega-trend” back in 1809: He showed us how to “train” a straight line to pass nicely through a cloud of unruly, scattered […]

If programming languages were human languages which one would be which?

If programming languages were human languages which one would be which? #python -> English. Simple and easy. Spoken everywhere, from lowly scripts, to web servers to #datascience. You’re never stranded if you know it #rlang -> German. Rigorous. Capable. Sometimes a bit convoluted. Not spoken much outside the Germanic world […]

Transition Matrix Library First Release

Open Risk released version 0.1 of the Transition Matrix Library Motivation State transition phenomena where a system exhibits stochastic (random) migration between well defined discrete states (see picture below for an illustration) are very common in a variety of fields. Depending on the precise specification and modelling assumptions they may […]

The Zen of IFRS 9 Modeling

At Open Risk we are firm believers in balancing art and science when developing quantitative risk tools. The introduction of the IFRS 9 and CECL accounting frameworks for reporting credit sensitive financial instruments is a massive new worldwide initiative that relies in no small part on quantitative models. The scope […]

Loan Level Templates Using Python

In this Open Risk Academy course we figure step by step how to use python to work with Loan Level Templates, using the ECB SME template as an example. Overview of the loan level template Manipulating spreadsheets with Python The Python Dictionary Organization of Portfolio Data Generating Test Portfolios Get […]

Guiding principles for a viable open source operational risk model

Guiding principles for a viable open source operational risk model (OSORM) Such a framework: Must avoid formulaic inclusion of meaningless risk event types (e.g., legal risk created by the firm’s own management decisions) or any risks where the nature and state of current knowledge does not support any meaningful quantification. […]


The data privacy genie is out of the bottle From Yahoo’s massive email data leaks, to Equifax’s exposing of sensitive data for a large segment of the US population, to Apple’s resisting the bypassing the security features of the iPhone, not a week goes by without some alarming piece of […]

RegNews Upgrade and Dashboard Integration

RegNews Upgrade and Dashboard Integration The Financial Regulatory News app (RegNews in short) is now integrated with the Open Risk Dashboard. The latest release adds several new feeds and allows filtering of news items by freshness (last day, last week, last two weeks) and by world region (Supra-national, Americas, Europe […]

How to Stress Test Financial Weapons of Mass Destruction

How to Stress Test Financial Weapons of Mass Destruction In recent decades we have been collectively spared the haunting images and existential anxiety provoked by the sight of detonating nuclear weapons for testing purposes – not to mention the increased levels of radiation in the atmosphere and other side-effects. This […]

The Promise of Open Risk Data

There is a legend that every time a data set is released into the open, somewhere dies a black swan The Promise of Open Risk Data Well, it is not a true legend. Legends take centuries of oral storytelling to form. In our frantic age, dominated by the daily news […]

Seeking clues for financial stability in quantum physics

Seeking clues for financial stability from quantum physics How physicists discovered why the world is stable Physics is one of those remarkably successful branches of science that have helped shape the modern era. Let your gaze drop on any man made gadget in your surroundings and its likely that its […]

If banks were airlines

If banks were airlines Ever since the scary turbulence of the Great Financial Crisis it has been instructive and illuminating to compare the travails of the financial industry with the state of other industries, especially those more down to earth, also known as real world industries. The automotive industry was […]

Lehman, Brexit, De-Regulation and the future of EU fintech

Lehman, Brexit, De-Regulation and the future of EU fintech The decision by the citizens of the United Kingdom to vote against continuing membership of the European Union (#brexit) will have wide ranging repercussions on many facets of the European (and even global) economic system. As of early 2017, we see […]

Transparency, standards, collaboration key to regaining trust in financial services

Transparency, collaboration key to regaining trust in financial services In banking, confidence is the first order of business Maintaining the confidence of market participants, clients, shareholders, regulators and governments is uniquely important for the financial sector. Trust is, quite literally, the real currency. Yet it is a truism that confidence […]

We are hiring artificially intelligent bankers

Job Specification for an Artificially Intelligent Banker The Artificially Intelligent Banker is responsible for the overall management of the AI2H (AI to Human) lending department. The following requirements (job specifications) were determined by extensive data mining analysis and derived from the job description as crucial for success in the Artificially […]

Eternal Risk Management One-Liners

Eternal Risk Management One-Liners A single line is sometimes the only thing that separates you from disaster Do you know of any good one-liners that saved the day at one point? (Update May 2017) We moved the list to the Open Risk Manual for easier editing and contributions Send us […]

Fintech, embrace your inner regulator!

2017 is shaping to be the year of “#regtech“, aka new technology startups setting up digital shop to help the financial services sector cope with its heavy “regulatory burden”. But what is “regulation”? Why is it a burden and how does it relate to real risks and risk management? The […]