Automation and Risk

We have been a little quiet on the blogging front at Causal Capital and a lot of people have asked; where's the team, what's going on? ... but it's been a busy, crazy year of growth for the company ~ We have tippled in size in less than twelve months and sadly we have stepped back from blogging to accommodate so much change, but rest assured this is only for a while.

Hopefully, we will be able to launch back into our publishing frequency for 2020 with various exciting articles, white papers, models and who knows, a few videos thrown in for fun ... certainly a new website is in order but more on that later.

Today we are going to explore automation and it's relationship on operational risk.

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.

Degenerating Bank's Risk Frameworks

It is a tragic end to the year for risk management in banking where the regulator's fascination with Risk Comparability and Risk Framework Uniformity has reduced banking risk management solutions to nothing more than Risk = BCI x ILM.

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.

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.

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.

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.

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.

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.