Risk management
How FX pricing is adapting to Trumpian markets
Dealers are tying pricing engines to new signals in effort to cope with out-of-the-blue moves
SRT growth raises fresh questions on valuation and risk
SRT growth and the implications for banks, investors and regulators
Trump’s FX impact: a tale of two terms
Traders say Trump version 2.0 is already proving a much trickier task to manage than the original, and have had to adapt
Regulators zero in on third-party risk, resilience
In latest survey, 35% of banks say watchdogs have “significantly increased” focus on third-party risk, with reports of arduous inspections and growing resource strain
Perceived workplace accident frequency and its impact on employee withholding behaviors and perceived productivity
The authors analyze relationships between perceived workplace accident frequency, employee withholding and perceived productivity as well as the mitigating effects of perceived risk and active communication of safety measures.
Risk prevention and regulatory challenges in metaverse trading
This paper focuses on the regulatory model of the metaverse, discussing the regulation of assets found within the metaverse, issues surrounding censorship and possible legal responsibilities that could arise.
Ninety-one per cent of banks have specialist teams for resilience risk
Latest survey shows regulatory pressure is driving broader framing of resilience, beyond IT and cyber
More than half of banks manage change as an operational risk
Others are moving to incorporate it into risk taxonomies, although some now treat it as a cause, citing supervisory guidance
Risk appetite breaches test development banks
MDBs also more likely to change services or strategy to reduce risk exposure, survey shows
Algos shrugged: AI uptake still lagging in bank op risk
Risk managers acknowledge transformative potential of artificial intelligence – most, from a safe distance
Failure mode and effects analysis–analytic hierarchy process (FMEA-AHP) model in supplier risk management
The authors put forward an FMEA-AHP method to identify and manage supplier risks in a mining firm that is also applicable to other sectors and companies.
Japan FSA’s Ariizumi on Basel delays and regulating AI
Outgoing international affairs chief issues rallying call for Basel III adoption, saying Japan has “kept its promise”
Numerix strikes Hundsun deal as China pushes domestic tech
Homegrown tech initiative – ‘Xinchuang’ – a new challenge for foreign vendors
CME suffers longest op failures in seven years
Outages totalled over 13 hours in 12-month period
Randomization of spectral risk measures and distributional robustness
The authors offer a means to describe a decision maker's risk preferences with a randomized spectral risk measure.
Volatility and geopolitical risk fuel new approaches to energy trading and risk management
Energy market participants seek new tools and signals to navigate near-term volatility and long-term uncertainty
Disaster insurance swaps
This paper proposes a novel contract, called disaster insurance swaps, to help insurance and reinsurance firms hedge extreme-weather-related liabilities.
FMIs create culture club for op risk
Exchanges and clearing houses seek to build risk resilience among front-line business, amid concerns of overreliance on second line of defence
A mix of Gaussian distributions can beat GenAI at its own game
Synthetic data is seen as the preserve of AI models. A new paper shows old methods still have legs
Taking the sting out: exchanges and CCPs bolster scenario toolkits
As cyber threats ramp up, the world’s largest exchanges re-assume the worst
Technology is a double-edged sword for FMIs
Exchanges and clearing houses rely on third-party vendors for vital systems, but outsourcing can also lead to duplication and waste
Break down the silos: the unifying power of total portfolio management
Best practices for investment operations and execution in today’s complex market landscape
Built for stress: rethinking liquidity management in a new era of risk
Funding liquidity strategies must evolve to thrive in a climate defined by volatility, regulatory pressure and rising depositor stress
Skin in the game: risk analysis of central counterparties
This paper proposes a novel framework to design the capital contribution of a central counterparty (CCP) to its default waterfall - CCP "skin in the game".