🌍 The Impact of Carbon Pricing on Credit Risk

🌍 The Impact of Carbon Pricing on Credit Risk: Insights for Financial Institutions and Regulators 📊💼 A recent study by Oyegunle & al. has interesting findings on the effect of high greenhouse gas (GHG) emissions on the credit risk of companies. The study specifically examines the potential impact of carbon pricing policies on credit risk
Read more
No Comments

CRO series #8 – Model risk management

📢 Chief Risk Officers (CROs) play a crucial role in today’s business landscape, particularly as financial institutions (FIs) increasingly rely on complex models. Model risk management is at the forefront of CROs’ minds. Welcome to post #8 of the CRO series! 🔍 What is a model? A model can be defined as a quantitative method, system, or
Read more
No Comments

CRO series #7 – Risk Culture

📢 Chief Risk Officers (CROs) play a vital role in today’s business landscape by focusing on building a robust risk culture within their organizations. Welcome to post #7 of the CRO series! ✨ What is Risk Culture?There is no consensus on the definition of Risk culture. However, most definitions agree that risk culture refers to
Read more
No Comments

What is shadow banking? How is it interconnected to the traditional banking system? And does it pose any risks to the global financial system?

💼 What is Shadow Banking? Shadow banking refers to a diverse range of non-bank financial institutions that might issue money-like instruments and provide credit. These entities operate outside the traditional banking framework, often with limited or no regulatory oversight. Examples include hedge funds, private equity firms, money market funds, pension funds and special purpose entities. 📈
Read more
No Comments

The CRO series #6 – Managing third-party risk

Chief Risk Officers of banks and financial institutions are currently paying close attention to third-party risk. Welcome to post #6 of the CRO series. In today’s interconnected world, financial institutions face an array of potential vulnerabilities that can arise from their extensive network of partners, vendors, and service providers. Here are some key considerations for managing
Read more
No Comments

Key insights from the Bank of Canada’s 2023 Financial System Review

My favorite business reading of the year was out yesterday. Here are a few takeaways that I found worth highlighting: 🏘 Household debt ▶ Higher interest rates and declining house prices have reduced financial flexibility for many households, resulting in early signs of financial stress.▶ The share of households affected by higher interest rates will
Read more
No Comments

CRO series #5 – Insights from the 2023 US debt-ceiling crisis

Chief Risk Officers of Banks are currently keeping a close eye on the debt-ceiling crisis in the US. What are the risks banks face in case of a U.S. default? Welcome to post #5 of the CRO series. A recent article by MarketWatch highlights the growing concerns surrounding this issue and sheds light on the
Read more
No Comments

What are Canada’s top disaster risks?

What are Canada’s top disaster risks? In May 2023, the Government released its first National Risk Profile (NRP) providing a comprehensive overview of Canada’s top disaster risks. This inaugural report delves into key areas such as earthquakes, wildland fires, floods, and pandemics, offering invaluable insights to inform your risk management strategies and enhance your ESG
Read more
No Comments

ESG insights from Wells Fargo’s recent $1 billion settlement

Wells Fargo’s agreed to pay $1 billion to settle a class-action lawsuit filed by shareholders. The lawsuit accused the bank of overstating its progress in addressing governance issues and risk management systems following the 2016 fake-accounts scandal. Here are a few insights regarding the S and the G factors in ESG: ➡ Social: The lawsuit
Read more
No Comments

CRO series #3 – Climate change risks

How should banks manage climate change risk?
For Chief Risk Officers (CRO) in the banking sector, managing the challenges of climate risk is among their top priorities. Welcome to post #3 of the CRO series. Climate risks can manifest in different forms, such as physical risks like natural disasters, and transition risks such as shifts in policy or market preferences. These risks
Read more
No Comments