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Wednesday, November 1, 2017

Project Finance Backtested

Looking back in time is something I recommend risk managers should do from time to time and this week drove me to do just that. In this short blog posting, we are going to take a peep at why and how it is essential for risk managers to see how well they are truly doing and that comes from looking back, it’s more healthy than you may believe, especially if you are honest with yourself.

Sunday, October 29, 2017

When to act on a KRI

In this short blog posting, we have shared a risk management white paper on Key Risk Indicators and when an auditor should act given a specific KRI position.

Tuesday, September 19, 2017

Upending Risk Velocity

The Velocity of Risk is a novel risk measure some Enterprise Risk Managers have started to toy around with and in this article, we explore its application and a method for modelling it.

A presentation that walks through what Velocity of Risk is and where it can be applied is attached to this blog.

Wednesday, September 13, 2017

Applied Risk Appetite

Causal Capital often partners with various risk management solution providers across the planet and tomorrow we are pleased to announce that we will be part of a cohort Risk Management debate hosted by Metricstream [LINK], feel free to pop down to the event and say hi. We have also developed a small presentation on Risk Appetite that will influence our discussion and this document can be accessed from the blog below, please do take a look.

Friday, September 8, 2017

Sound Practices for Fintech

Issued in August and with one month to comment, the Bank for International Settlements has recently released Sound Practices for Implications of Fintech developments on banks and by extension, the supervisors of those banks are captured in this practice brief as well.

Monday, August 14, 2017

Hedge Fund CRO Charter

From a recent discussion on LinkedIn, the following question was put forward: "What are some of the roles a risk manager should play at the public market / equity investment fund?".

In this short article, we'll take a look at the charter of a risk manager, and why not? Actually, let's quickly take a peep at the top risk management position in any firm, the Chief Risk Officer.


Tuesday, June 27, 2017

ERM Decision Trees and ISO 31010

Over the years we have written numerous blogs that share in-depth presentations on different risk modelling methods and in the coming months ahead, Causal Capital is going to increase the number of these technically natured risk management articles.

Today we are going to focus on Decision-Trees from the ISO 31010 Risk Assessment standard, and if you are interested in downloading the presentation associated with this posting, please do continue reading.

Monday, June 12, 2017

Why some risk comparisons are problematic

Elusive Etiological Risks ~ Every once in a while, especially when a specific situation is resonating with society at large, partial intellectuals tend to come forth to put everything into perspective but unless they are careful with their 'etiological typecasting', they chance to further mislead everyone including themselves.

Why are people so bad at assessing risk?


Wednesday, June 7, 2017

Circular 900 a right way forwards

Every once in a while, banking regulators get it right, and Bangko Sentral ng Pilipinas (BSP) has certainly done so with its Circular 900 [LINK] on operational risk.


Sunday, May 21, 2017

Risk Management Interconnectedness

Recent correspondence with a client drew me into a debate on ‘Interconnectedness’ or specifically: It would be good to get your thoughts on the second bullet point – Interconnectedness?


Tuesday, May 2, 2017

New Step-In Risk Guidelines

It has been a long time since we have blogged on this channel, a whole year, that is way too long in the world of banking and risk management. There has also been a lot of requests to bring this portal back into action, so without further ado, we'll attend to that with this new posting on Step-In risk.

Saturday, March 26, 2016

The risk of doing nothing

Norman Marks recently published a blog on "Why do people take risks" [LINK] which has inspired this commentary.

In this quick but explicit blog response, we explore eight iterative considerations that should be transgressed for effective decision making in the realm of risk management.

Friday, February 5, 2016

Risk Management Puzzles

Representing Operational Risk or Enterprise Risk Management for that matter as pieces of a puzzle has always been appealing and that appeal never seems to wear thin. It certainly used to be a bit of a fascination for me but the real magic of a risk framework design doesn't come from identifying the pieces of the puzzle specifically but from interconnecting these elements in a seamless manner.

Putting the pieces of a risk framework puzzle together still seems to be a challenge for risk managers, even today.

Tuesday, January 5, 2016

Board Level Risk Reports Need To Change

One area where Enterprise Risk Management often fails is when it comes to reporting risks to the executive team of a company, its stakeholders or the board. In this posting, we are going to take a look at why risk managers go off the rails with this top level reporting requirement and how these flaws can be addressed.

Friday, November 27, 2015

Responding to Systemic Failures

An interesting comment from a respected senior associate today is worth pondering on:

Am guessing/hoping this [Systemic Risk] is directly in your wheelhouse & not sure how ISO 31000 deals with it as it involves or influences multiple systems within a sector or industry.

In my world, this type of issue is viewed as an external influence which essentially sidelines what should be considered a strategic risk.

Would be interested to see your thoughts on your site or in the group.

Thursday, September 10, 2015

Emerging Markets Workplace Safety

When a typical person from the developed world asks me about risk management practices in the emerging markets, I have this sense they just don't quite grasp what we are dealing with much of the time as risk managers. Over the years I have amassed some of the most incredible and unbelievable stories of dysfunction, yet ... society kind of works it all out pieced together by a thread. Much of the madness that goes on is unfathomable unless you see it with your own eyes, if you are looking out for it that is.

Just as a typical example; on my way to a risk management meeting of all things with a bank this morning, I was presented with a couple of images which starkly represent what I mean when I say risk management in the emerging markets has its challenges.

Friday, September 4, 2015

RMA Credit Risk Brown Bag

If you are in Singapore on the 17th of September and you work in the world of credit risk, this RMA credit risk program looks like an interesting presentation to attend.


Saturday, August 29, 2015

Assessing uncertainty is full of error

Our recent article on the risk matrix [LINK] is all fine but the concept of a risk matrix from the outset seems to embody much of what is wrong in risk management today, let me elaborate on all of this for a moment.


Saturday, August 22, 2015

Making A Risk Matrix Useful

A recent debate on the G31000 forum titled "Test your Risk Matrix" isn't the first time this contentious subject of Risk Matrices has been debated between practitioners and, I doubt it will be the last.  The use of a Risk Matrix, which we will explain in this blog article, is broadly popular among enterprise risk managers looking to report aggregated and enterprise-wide view of exposures that threaten their stakeholders.  Those that use risk software systems often find that the Risk Matrix comes installed as part of the package and I know some practitioners out there wouldn't procure a risk solution unless this type of report was available from the outset.

The Risk Matrix is a bit of FAIL though and it generally does not yield to the industry of risk management what it promises. Some seasoned risk analysts are so disgruntled with the tool that they choose to drop the whole reporting concept altogether.  That is all fine but it doesn't detract from the requirement that stakeholders are going to ask for a summarized view of their risks at some point in time and as it stands, many of them have become accustomed to seeing their world of risks in a matrix.

Disbanding the Risk Matrix to the rubbish bin doesn't seem a viable solution for avoiding its problems, unless something better comes along. So then, let's tackle its flaws and try to resolve them.


Friday, July 31, 2015

Australian and Canadian Bank Risk Culture Examined

An interesting study on the internal "Risk Governance Culture and Behaviour" of Australian and Canadian banks has recently been published by Elizabeth Sheedy and Barbara Griffin from the Faculty of Business and Economics at Macquarie University [LINK].

There are some curious insights to be found after surveying 22,145 employees of 222 various business units in six major banks headquartered across two countries and, I have plucked out some of these findings or perhaps their interpretations in this short blog posting.