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In our personal lives, it is the balance between work and life, or the dreadful weight balance. In the professional sphere it might be the balance between debt and equity in the financial industry, or the balance between convenience and citizen privacy in the new tech industry, or the welfare of the many balanced against the property of the few, or finally the geopolitical balance of power of different peoples Balance ensures sustainability as it helps steer away from the risks that lurk at the extremes. It is actually hard to find scenarios in which a balanced approach would not be the optimal way to complete any meaningful journey. Maybe in a world with full visibility and zero risk.

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 detox challenge:

Financial Risk Modelling has suffered enormous setbacks in recent years, with all major strands of modelling (market, credit, operational risk) proven to have debilitating limitations. It is impossible to imagine a modern financial system that does not make extensive use of risk quantification tools, yet rebuilding confidence that these tools are fit-for-purpose will require significant changes. These need to improve governance, transparency, quality standards and in some areas even the development of completely new strands of modelling.

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!

RegNews, the Regulatory News Aggregator

With all the ongoing activity around financial regulation having a convenient aggregation point for the main news is an indispensable tool for financial risk managers. This prompted us to build and roll out the Regulatory News App (RegNews in short), which is now live and freely accessible here. The app is designed to be usable both on a desktop and mobile environment.

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 concentration - what it is and how it can be measured
• The regulatory context and how the issue is covered by requirements and regulatory guidance
• The measurement of credit name or sector concentrations using basic indicators and indexes
• The measurement of credit name or sector concentrations using more advanced (risk based) indicators

The courses run from Oct 7th till Oct 13th. Read more about prerequisites for the courses here:

Open Risk Presentation summarizing the Public Beta Phase

Overview of the motivation for initiating Open Risk and the solutions being delivered in the current phase.

• Venue: Online
• Location: The world
• Time: September 18th 2014
• Link to presentation: Open Risk Overview

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 28th 2014
• Link to presentation: Local file

Can’t turn around, we have come this far by faith…

Open Risk is now open for public beta testing.

We’ll keep the site in public beta stage for as long as needed to smooth out the rough edges.

We got the first “like” on social media, the lucky first liker earned a lifetime membership award. Now we have to think of something suitable for the second and third, as a winner takes all mentality is not in our world outlook.

A CrashCourse (short course) introducing the Open Risk Academy for first time users is now available here. Please try it out!

A Python module of analytic solutions suitable for testing credit portfolio models has been uploaded in the Open Risk github repository

Building out further the Open Risk Academy curriculum around Credit Risk Concentration management, we just added a course on sector concentration.

Alpha testing did not reveal any fatal problems with the website or the Open Risk Academy website. Many thanks to Odysseus for painstakingly testing everything!

As of this weekend login details were sent to select volunteers with a mission to further test drive Open Risk. This limited beta testing will be ongoing for the duration of May.

Direct feedback of your experience with the website is much appreciated, but we thought also of simplifying and streamlining the process based on an online survey. It is (Was) available here (Now Closed) and it will be open in this form until the end of beta testing.

Thanks for participating!

As of April 8 (late at night 🙂) the Open Risk website (this website!) is uploaded and ready for alpha testing!

The asset quality review (AQR) was one of the components of the comprehensive assessment performed by the ECB prior to assuming full responsibility for supervision under the single supervisory mechanism in November 2014.

Open Risk developed an early online accessible version of the AQR manual that offers additional means to access and browse the Phase 2 ECB AQR Manual.

We just added a new course at the Open Risk Academy!

The course covers name concentration risk measurement, chiefly the construction of suitable metrics based on portfolio data (Free registration is required for this course).

For more details see the course page.

The Risk Manual is one of the core tools of the Open Risk Commons.2

We have released a first set of article entries covering a broad area of risk management topics.

The first batch of open source tools focusing on Credit Portfolio calculations is now available here.

The functionality aims to standardize Name Concentration Measurement (concentrationMetrics)

Further Resources

• Open Risk Academy Course CNC13010

Hello World

This is our first Open Risk post! Godspeed.