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 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 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 […]
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 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 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 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, 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 […]
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 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 […]
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 […]
How much digital bank can we fit in a 50 euro bill? Much has been said about the impact of Big Data and high-end GPU computing on the provision of digital financial services. At Open Risk we wanted to explore the boundary of what is possible at the diametrically opposite […]
StatsNews: Aggregating Economic Open Data news StatsNews Version 1.3 of the RegNews Aggregator includes a separate stream of economic opendata news releases. Regnews is a web app developed by Open Risk to assist with keeping abreast with diverse financial regulatory news releases and publications. The app data are directly derived […]
Fintech Risk Events Fintech Risk Events is an open catalog of observed and publicized operational failures of fintech business models. The catalog aims to document, in due course, such events reasonably accurately, to allow risk managers understand the (potentially new) vulnerabilities of new financial services models. Scope The scope of […]
Regnews: Financial Regulatory News Aggregation Version 1.2 The #RegNews Aggregator is a web app developed by OpenRisk to assist with keeping abreast with diverse financial regulatory news releases and publications. The app data are directly derived from the published regulatory RSS sheets (NB some are not conforming to RSS standards). […]
Top 10 Risk Manual Articles The current list of Top 10 Risk Manual Articles, sorted by reader popularity covers a range of topics in risk management. External Fraud, (Operational Risk) Herfindahl-Hirschman Index, (Concentration Risk) Hannah-Kay Index, (Concentration Risk) Concentration Ratio, (Concentration Risk) Granularity Adjustment, (Concentration Risk) Business Execution, (Operational Risk) […]
The Atlas of Bad Risk Management. The Atlas was discovered recently in archeological work studying pre-crisis civilizations. Despite the obvious wear and tear, all key risk failure areas have been preserved. We note the remarkable diversity of organizational forms and economic structures. Most interestingly, there is even an uncharted territory […]
Visualizing the risk management of the future How do we communicate risk insights? The information tools used by risk managers to communicate insights have been transformed multiple times over the ages. In each era we have adopted existing technologies, but we also created demand for new technologies. Our era is […]
Reducing variation in credit risk-weighted assets – The benign and vicious cycles of internal risk models March 2016 wasn’t a good month for so called “internal risk models”, the quantitative tools constructed by banks for determining such vital numbers as how much buffer capital is needed to protect the savings […]
