Access to Alternatives
Alternative assets are an important part of modern portfolios—but how can you gain access to them? Do investors and investment advisors know what alternative investment options exist, and what platforms provide them? Do advisors know how to use modern investment platforms to differentiate their offering and provide unique opportunities? How can this type of access on the new platforms enhance the business asset managers? Four panellists convened on October 26, 2021, to discuss these aspects of alternative assets, in a webinar sponsored by the Canadian Association of Alternative Strategies & Assets (CAASA), a trade association representing alternative investment managers, service providers, and investors. The […]
Top 5 Trends in Risk Management
The champagne has been drunk, and the New Year has been rung in. What trends are predicted in risk management as we welcome the new decade? “In 2020, we’ll likely see significant changes in risk models, processes and functions,” predicts Brenda Boultwood, Risk Advisory Partner at Deloitte. As a senior expert in risk culture and corporate governance, she published an article online January 10, 2020, for the Global Association of Risk Professionals (GARP). We present the highlights and a link to the full article below. The three lines of defense business model, as we know it, will end This is actually […]
Shadow Banking in China
Shadow banking has enjoyed extraordinary growth over the past decade, especially in the emerging markets of China. The implications were discussed in the webinar “Shadow Banking: Standing at the Precipice?” sponsored by the Global Association of Risk Professionals (GARP) on August 6, 2019. Cindy Li, a Greater China analyst of the Federal Reserve Bank of San Francisco, was the second of two speakers at the one-hour GARP webinar. She said the shadow banking system in China has evolved to a fairly large group of powerful competitors, but that has led to “a build-up of risk” as China’s economic growth slows down. First, […]
Behavioral Analytics 2
Industry leaders in the field of behavioral analysis (Facebook, Apple, Microsoft, Google, and Amazon – FAMGA, as some call them) are “decision architects,” said Joe Mattey, Vice President of Enterprise Risk Analytics, and Chief Risk Officer at USAA. Typically a FAMGA product designer will put together a solution, such as a screen dialog, and fine-tune it over the course of many randomized, controlled trials, to see if the proposed solution gets the desired result—or whether some components need to be changed. In this way, behavioral analysis is looking not just at a decision outcome, it is looking at how that […]
Mega-Platforms, Mega Risk
There’s a world of difference between innovation and disruption. “Think of innovation as doing more, in the same old way,” said Haydn Shaughnessy, innovation specialist and author of Platform Disruption Wave: How the Platform Economy is Changing the World. He presented a GARP webinar on “The Rise of Mega-Platforms and the Risks to Banking” on May 25, 2016. In the first part of his talk, he described mega-platforms. He referred to the thesis of The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail by Clayton Christensen. This book argues that successful companies get so caught up in meeting […]
Integrated Data and Modelling
How can today’s bankers prepare for tomorrow’s challenges? Consider the financial models built using available data. Data collection and financial modelling used to be conducted in each different silos of the bank, with credit separate from market, which was separate from treasury and other groups). Then data became “managed” and modelling was moved to “platforms” which did not mix well between the various silos. A few brave souls began to integrate the data management for different groups of the bank. Other brave souls tried to integrate the modelling. This was the phase of integration achieved through batch calculations. Now, the […]