Risk Management Skills for the Fintech Era

Risk Management Skills for the Fintech Era Financial services jobs continue being decimated. A recent FT article was a sobering summary of the continuing “transformation” of the financial sector: 2015 alone has seen more than 10% reduction of the total workforce across large EU/US banks: As main drivers for this […]

Listening to the sound of the economy   New !

Listening to the sound of the economy How do we make sense of the torrent of economic datasets becoming available? One obvious answer is via visualization. This domain is experiencing a veritable renaissance and you ain’t seen nothing yet (no pun). Here we want to do instead an initial, and […]

Seven Heavens of Finance and the Open Risk API

Seven Heavens of Finance and the Open Risk API Back-to-basics is not salvation It has become trendy since the financial crisis to be wearing an “anti-complexity” hat in matters concerning the shape of the financial system. This is an understandable reaction to the entangled constructions that had sprung to existence […]

Open Risk is proud to be funded by the EU FIWARE FINODEX accelerator

Open Risk is proud to be funded by the FIWARE FINODEX accelerator! Finodex, the European accelerator for ICT projects based on Open Data and FIWARE technologies, has already chosen over one hundred projects via two open calls for proposal. This week the results of the second call evaluation closed in […]

Open Source Risk Data with MongoDB and Python   New !

Open Source Risk Data with MongoDB and Python Open source software is all the rage those days in IT and the concept is making rapid inroads in all parts of the enterprise. An earlier comprehensive survey by Gartner, Inc. found that by 2011 more than half of organizations surveyed had […]

Open Risk API

Open Risk API If you work in financial risk management you will most likely recognize where the following sentence is coming from: “One of the most significant lessons learned from the global financial crisis that began in 2007 was that banks information technology (IT) and data architectures were inadequate to […]

The Zen of Modeling   New !

Risk modeling is as much art as it is science The Zen of Modeling aims to capture the struggle for risk modeling beauty An undocumented risk model is only a computer program A risk model that cannot be programmed is only a concept A risk model only comes to life […]

The mystery of the collapsed cathedral

The mystery of the collapsed cathedral You walk to the center of an old city and you see its glorious cathedral lying in ruins. What in the world has happened here? Your investigative instinct goes into overdrive. This is not supposed to happen. Not in peacetime anyway. How can it […]

The periodic table of risk elements

The periodic table of risk elements You know the periodic table of elements, even if you flunked your science courses! It is the large colorful and blocky table that hanged on every school’s classrooms before becoming yet another mobile app. The periodic table is one of the early and iconic […]

Revisiting simple concentration indexes

Revisiting simple concentration indexes Our white paper “Revisiting simple concentration indexes” reviews the definitions of widely used concentration metrics such as the concentration ratio, the HHI index and the Gini and clarify their meaning and relationships. This new analytic framework helps clarify the apparent arbitrariness of simple concentration indexes and […]

Visualizing the Stress of US Banks   New !

Visualizing the Stress of US Banks A recurring cycle of regulatory stress testing exercises has become the new normal in the banking world, at least on the two shores of the northern Atlantic. The periodicity of the European stress testing heartbeat has not yet been firmly established. Did we just […]

Concentrating on Concentration Risk

Concentrating on Concentration Risk Senior economists such as Ben Bernanke were still studying the Great 30’s Depression when the financial crisis struck in full force circa 2007. Given the complexity of the modern economic and financial landscape compared to the blessed good old days – we have no reports of […]

A mini course on risk management

A mini course on risk management, its perils and the silver lining When talking about risk management, it is not very clear what we are talking about in broad terms, definitely not getting clearer when we start getting into the details and it is even not clear how to best […]

Open Source Risk Modeling Manifesto

Open Source Risk Modeling Manifesto This post is a summary of a presentation given at the 2014 Autumn TopQuants Meeting, aka, the “Open Source Risk Modeling Manifesto”. The dismal state of quantitative risk modeling The current framework of internal risk modeling at financial institutions has had a fatal triple stroke. […]

FuriousBanker: The Credit Detox Challenge

FuriousBanker(TM) helps you learn risk management concepts in a fun and engaging way. This educational game series for mobiles and tablets is developed by Open Risk to enable modern interactive elearning for people working (or aspiring to work) in financial risk management. The first episode sees FuriousBanker facing The credit […]

EU Risk Dashboard Released   New !

EU Risk Dashboard Released About the app: The EU Risk Dashboard is a web app developed by Open Risk to assist with the exploration and understanding of the large number of economic indicators published by the ECB in its Statistical Data Warehouse. The app data are derived from the timeseries […]

Credit Detox Series: Step 1, Credit Correlation

We are happy to publish the first installment of a trilogy that focuses on the risk factors that can turn any credit portfolio toxic. The first topic is default correlation, a topic that is both core to understanding credit risk and much misunderstood. Enjoy!

New App Release: RegNews, the Regulatory News Aggregator

RegNews, the Regulatory News Aggregator With all the activity around financial regulation having a convenient aggregation of the main news feeds is an indispensable tool for risk managers. This led us to build and roll out of the Regulatory News App (RegNews in short), which is now live and freely […]

Free online courses on credit concentration (Oct 7th – Oct 13th)

As part of the public beta testing programme, two new Open Risk Academy courses are accessible absolutely free (and with no strings attached :-). The courses are introductions to measuring credit name or sector concentrations in credit portfolios. They cover the following topics: The concept of credit name or sector […]

Benchmarking and the future use of internal capital models

The rationale for continuing with internal capital models in the Basel 3 world Overview of the challenges and opportunities offered by internal capital models (economic capital models) in the post-crisis era. Conference Presentation given at: Venue: 2nd Annual Capital Modelling under Basel III (Marcus Evans Conference) Location: London Time: January […]