Risk.net - Financial Risk Management News Analysis
Data insights, delivered daily. Risk Quantum tracks thousands of data points across hundreds of metrics from organisations that represent a cross-section of the financial system. Published daily, articles are short and broken into chunks – the facts, the context and a brief commentary – and use data visualisations to get each story across.
Value-at-risk (VAR) definition - Risk.net
Value-at-risk is a statistical measure of the riskiness of financial entities or portfolios of assets. It is defined as the maximum dollar amount expected to be lost over a given time horizon, at a pre-defined confidence level. For example, if the 95% one-month VAR is $1 million, there is 95% confidence that over the next month the portfolio will not lose more than $1 million.
Risk-free rate (RFR) definition - Risk.net
The risk-free rate is the theoretical rate of return on an investment with zero risk. As such, it is the benchmark to measure other investments that include an element of risk.Government bond yields are the most commonly used risk-free rates for assets. Libor is a widely used proxy for a risk-free rate for swaps and bonds. But as a result of rigging controversies and a lack of relevant ...
Risk Journals - Quantitative Risk Management Resources - Risk.net
Risk Journals deliver academically rigorous, practitioner-focused content and resources for the rapidly evolving discipline of financial risk management. Each quarter, Risk Journals provide peer-reviewed research and technical papers, delivered to a global audience in print and online. The Risk Journals portfolio has been serving broad and ...
Top 10 operational risks for 2021 - Risk.net
Mar 3, 2021 · Welcome to Risk.net’s annual ranking of the top op risks for 2021, based on a survey of operational risk practitioners across the globe and in-depth interviews with respondents.. As in years past, there is no great secret to the methodology: Risk.net’s editorial team gets in touch with 100 chief risk officers, heads of operational risk and senior practitioners at financial services firms ...
Risk management news and analysis articles - Risk.net
Data insights, delivered daily. Risk Quantum finds insights in data. The service tracks the public disclosures of over 120 banks, funds, insurers, corporates, and central counterparties – as well as reports from prudential and markets regulators – in Asia, Europe and North America.
Risk-weighted assets (RWAs) definition - Risk.net
Risk-weighted assets are used to determine the minimum amount of regulatory capital that must be held by banks to maintain their solvency. This minimum is based on a risk assessment for each type of bank risk exposure: credit, market, operational, counterparty and credit valuation adjustment risks. The riskier the asset, the higher the RWAs and the greater the amount of regulatory capital ...
Credit risk definition - Risk.net
Credit risk is the risk of a borrower defaulting on a loan, or related financial obligation. Alongside market risk and operational risk, it is one of the three major classes of risk that banks face, and accounts for by far the largest share of risk-weighted assets (RWAs) at most banks. Banks use credit risk modelling to calculate the amount of capital to hold against credit losses.
Journal of Risk - a Risk.net journal
The Journal of Risk is particularly interested in papers on the following topics: Risk management regulations and their implications. Risk capital allocation and risk budgeting. Efficient evaluation of risk measures under increasingly complex and realistic model assumptions. Impact of risk measurement on portfolio allocation.
Three lines of defence (3LOD) definition - Risk.net
The three lines of defence is a risk governance framework that splits responsibility for operational risk management across three functions. Individuals in the first line own and manage risk directly. The second line oversees the first line, setting policies, defining risk tolerances, and ensuring they are met. The third line, consisting of internal audit, provides independent assurance of the ...