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Date: 1-16-2012   Visits: 70 Banking Apples and Oranges Vikram Pandit, the CEO of Citigroup, used an opinion piece in last week’s Financial Times to make an interesting proposal on risk disclosures: banks and other financial institutions should...
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Date: 1-12-2012   Visits: 89 Bankers’ Favorite Metrics Botch Liquidity Risk From the Phoenicians to the late 1970s, the top two risks in banking were always seen to be credit followed by liquidity. That changed with the marriage of high interest-rate volatility and comp...
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Date: 1-10-2012   Visits: 111 Apples v apples – a new way to measure riskIt is hardly surprising that the financial crisis and ongoing economic turmoil have caused some to question the value of capitalism. But in fact the crisis was not an indictment of capitalism. It shou...
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Date: 1-7-2012   Visits: 112 Christmas, Kurtosis, Fat Tails, Black Swans And Risk Management, Pt. 2 Christmas season is as good a time as ever to remind you that a probability distribution has two tails. Event distributions have been getting a lot of attention over the past several years, espe...
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Date: 1-3-2012   Visits: 88 Fed Envisions Stronger Risk Control at Large Financial FirmsSpanning 173 pages, the proposed rules aim to impose more rigorous risk management on large financial firms, to avoid the chaos and paralysis experienced in the fall of 2008 after Lehman Brothers sudd...
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Date: 12-31-2011   Visits: 80 Value At Risk – A Key Measure Of Oil And Gas Risk Management Risk assessment is a first step in oil and gas risk management. It is a process of determining quantitative or qualitative risks and threats in relation to a given situation through risk analysi...
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Date: 12-31-2011   Visits: 56 Author of ‘The Number That Killed Us’ Explains what Really Caused the Great Recession What if I told you that the true culprit behind the 2007-2008 credit crisis and, indirectly, the current Euro crisis was a mathematical model known as Value at Risk? And what if I told you that ...
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Date: 12-17-2011   Visits: 100 Conflicts about Risk Risk is always about the future.  There will always be disagreements about the level of risk.  True disagreements.  People believing completely different things.  And it is t...
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Date: 12-17-2011   Visits: 70 Exelon Names Risk Leadership Team for Combined Exelon-Constellation CHICAGO & BALTIMORE, Dec 14, 2011 (BUSINESS WIRE) -- Exelon EXC -0.95% today announced that upon closing of the Exelon-Constellation merger, Joseph R. Glace will become senior vice president...
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Date: 12-17-2011   Visits: 127 The Worst Measure of RiskWorld history repeatedly reminds us that the most we can lose is everything. Although approximate measures can serve us well, some measures are bound to backfire. So is “Value at Risk”, or...
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Date: 12-17-2011   Visits: 69 Another Partial Solution: Conditional Sharpe Ratio“What this country needs is a good five-cent cigar,” Thomas Marshall (Woodrow Wilson’s vice president) once remarked. Updating the quip for 21st century finance might run as follows:...
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Date: 12-15-2011   Visits: 257 Should Value at Risk Be Abandoned Entirely? Wall Street banks are continuing to use a widely discredited measure of risk, which could prove to be a “very treacherous guide to the future,” according to the author of a new book ...
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Date: 12-14-2011   Visits: 69 To navigate economic storms we need better forecasting This act of bravery was prompted by a recent piece of research about the structure of the global corporate network that was reported in New Scientist(22 October, p 8). This gave us a tantal...
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Date: 12-8-2011   Visits: 65 EU CAPITAL EXERCISE - December 2011 The European Banking Authority (EBA) published a formal Recommendation, and the final figures, related to banks’ recapitalisation needs. These measures form part of a broader European pack...
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Date: 12-5-2011   Visits: 90 Building CVA on top of an existing risk infrastructure This article explains the ‘CVA landscape’ like the drivers and the different approaches that banks can adopt in response to these drivers.  It provides practical help for banks ...
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