Opinion/Risk management
Conflict in China
Editor's letter
Beyond comparative statics
David Rowe says it is time to extend stress testing to include more than just analysing the immediate impact of selected extreme events
Financial network risk
Both macroeconomics and financial theory have failed to deal adequately with systemic risk. However, other disciplines have much to teach us about the stability and fragility of complex dynamic systems, argues David Rowe
It's NOT the econometrics, stupid
Risk modelling has come under the microscope since the onset of the crisis, with many blaming market risk models for exacerbating the crisis. Elizabeth Sheedy presents a defence of quantitative techniques
Better safe than sorry
Editor's Letter
Autonomy or centralisation?
Regulators have drawn attention to the silo approach taken by many financial institutions, which hampered effective risk management across organisations. Mauro Maccarinelli and Michael Zerbs argue the time has come for firms to take a more centralised…
Dealing with disputes
Editor's letter
Market view: The role of the chief risk officer
Risk management is a discipline often neglected amongst buy-side firms but now more than ever investment managers need to get to grips with their risk exposure. Reinforcing the role of chief risk officer is a start.
A return to credibility
The financial crisis has exposed the fact that many banks merely paid lip service to risk management, as well as relying too heavily on quantitative techniques. However, genuine risk management requires judgement and a strong risk culture within a firm,…
Heads in the sand
Editor's Letter
Fostering opacity
'Too-big-to-fail' is not just a moral hazard problem, it positively fosters dangerous opacity, argues David Rowe
A sense of déjà vu
Letter to the editor
What next?
Editor's letter
A return to credibility
The financial crisis has exposed the fact that many banks merely paid lip service to risk management, as well as relying too heavily on quantitative techniques. However, genuine risk management requires judgement and a strong risk culture within a firm,…
Markets are not magic
Despite their pervasive contributions to economic growth and efficiency, it is important to remember markets are not magic when transparency fails, argues David Rowe
Market graphic - Derivatives usage amongst the Fortune Global 500
A recent survey by Isda reveals that 20% of the world's 500 largest companies are users of credit derivatives, against 94% across all derivatives classes
Column: Charles Cronin
Flawed models, conflicts of interest, ineffectual leadership: the rating agencies have emerged from the financial crisis with little credit, and reform may strip them further of their influence
Feeling the squeeze
Editor's Letter