Risk Aggregation White Paper

It has been a while since the Causal Capital team has published a white paper, but due to popular request, we are going to start writing these wonderful pieces of work again. All faring well, we will be publishing a White Paper each month and today we are happy to release our White Paper on Risk Aggregation.

Banks Struggle with BCBS 239

There is a very sobering thought about risk management capability and its dependency on information technology units in banks that goes along the following lines: If your data, model and reporting systems are lacking, so will your response to risk management. It's that simple or perhaps not as we shall see with BCBS 239 regulations.

How to Straddle Risk

When we hear risk managers say there are five ways to treat risk (accept it, transfer it, reduce it, increase it, avoid it), we have to accept they aren't being especially creative with their solutions when potentially there is an unlimited number of risk treatment strategies available to them. All they have to do is just broaden their minds.

Risk Awareness & Sync

Ever heard someone say they are a great multitasker or they can work on an infinite number of new activities and never drop the ball? As it turns out, that may not be true. In a new research paper published by a team of scientists, the number of items we can hold in working memory at any one time has more limits than what we believe.

Self-Healing Risk Solutions

I was having a discussion with a risk analyst only the other day about which industry sector does it best from a risk management perspective, be it Banking or Oil and Gas, Health, Aviation and so on.

Applied Markov Example

Dear Causal Capital, we have been reading the ISO 31010 guideline on a Markov Matrix in section B.24 of the risk assessment techniques guideline and the concept is a touch abstract to understand. Do you have an example on where this risk analysis technique can be used to improve decision making in the business, something that goes beyond just Risk Assessment from a Risk Management perspective.

Okay, in this short blog we'll take a quick look.

Effective Treasury Audits

In this article, we take a look at what needs to be in place for an effective audit of a treasury function, taking in both the effectiveness of the first and second line of defense.

Risk Adjusted ROIC

In our first article on Next Gen Enterprise Risk Management [LINK] we talked about a prevailing trend for managers to move beyond the esoteric ERM practices used to gather data across a company TO the importance of aligning Risk Management initiatives with the actual fabric of the business. In this article, we will explore in part how Risk Management can be connected to the Finance Department.

Next Generation ERM

In this posting, we are going to take a reality call on where Enterprise Risk Management is today and why the Next Generation of this management function needs to evolve.

Auditing Control Effectiveness

Not all controls are designed equal, not all risks are equal that we know to be a potential truism, but the deviation between these two places nearly always leaves some organisations exposed.

Ethics in Risk Culture

In our previous blog on the outstanding attributes of a solid Risk Manager [LINK], a few practitioners have asked me various questions about Causal Capital’s 'Grid of Permissibility', and so I thought it prudent to delve into a couple of slides in more detail.

Attributes of Risk Managers

Working with the London School of Business and Finance, and a set of MBA students on risk management. The topic of interest today is "The scope of a risk manager" (in a bank) and what it takes to make a good risk manager.

It's a nice change from the technically heavy presentations we can wade through at times, and I look forward to any commentary on this blog, as per usual.