by Regitze Ladekarl, FRM | Jun 10, 2024 | Risk Report
The Risk Report is always excited to dive into news details that validate what it already believes to be true. And if it can be combined with topical lyrics from Queen Bey, it is even better. So, remember the yield curve? The one by all measures has been inverted for...
by Regitze Ladekarl, FRM | Jun 3, 2024 | Risk Report
It is widely felt and reported that housing costs have entered the painful range. Especially more recent home buyers (with less equity built up) and those in areas prone to extreme weather events are struggling, because they are being hit thrice or even quince...
by Regitze Ladekarl, FRM | May 27, 2024 | Risk Report
We all know how it started. Last summer Team Regulator slammed Team Bank hard with a proposal that among other stingers would mean an almost 20% increase—AKA $150bn—in the core capital requirement for Club G-SIB. A G-SIB is a Global Systemically Important Bank. The...
by Jonathan Leonardelli, FRM | May 21, 2024 | CECL
Much has changed since CECL became effective—data has grown, technologies have advanced. While those changes themselves may cause a Financial Institution (FI) to reevaluate its CECL system a more important motivator might be experience. For most FIs, the CECL process...
by Regitze Ladekarl, FRM | May 20, 2024 | Risk Report
We at The Risk Report have been exploring entities that by all accounts (haha!) act like banks but aren’t. This week Forbes and a few others highlighted that while these companies largely are exempt from regulation, and market that as an upside, they are also very...
by Regitze Ladekarl, FRM | May 6, 2024 | Risk Report
A bank has a credit card portfolio. It is happy about that. Fees are good and higher rates mean more interest coming in. There is just one little bummer, and that is the capital it has to hold in reserve incase any cardholders default. A private credit firm has a...
by Joey Doyle | May 3, 2024 | Climate Risk
This blog series explores initial industry research into managing climate risk so that you understand what is at stake for your financial institution (FI), as well as how to get started with measuring and mitigating this emerging source of risk. We have presented an...
by Regitze Ladekarl, FRM | Apr 29, 2024 | Climate Risk, Risk Report
As you might have noticed, there are differences in the approach to climate change between the US and Europe. In the US, the political discourse on the subject tends to set the pace of progress whereas the Europeans seem to agree more on the interpretation of...
by Regitze Ladekarl, FRM | Apr 22, 2024 | Risk Report
It’s unfair to always pick on broccoli because it is healthy and (with copious amounts of cheese) also delicious, but for the sake of the example, please let it slide this time. Say that we have all been promised dessert (interest rate cuts) if we finish that pesky...
by Regitze Ladekarl, FRM | Apr 15, 2024 | Climate Risk, Risk Report
A few weeks ago, we reported that the SEC had finally settled on a rule for companies to disclose a small part of their carbon emissions. It seemed like a baby step in the direction of where the rest of the world has been heading for years, namely a global net zero...
