Credit Risk
261 white papers and resources
Risk Library provides a number of credit risk white papers, industry reports and opinions, which can be used to aid the decision making process and to reduce your organisations credit risk exposure. Credit risk is the type of risk that a lender assumes. As a form of compensation for taking on the risk, a lender receives interest repayments at an agreed upon rate. However, if a borrower defaults on agreed repayments, lenders may lose the partial or full sum and interest of the loan. This could result in the lender incurring further costs such as collection of debt owed and disruption to cash flow.
Essential Features of A Good Economic Scenario Generator (ESG)
This paper begins by defining an economic scenario generator and then distinguishes between real-world and riskneutral applications. The paper then discusses the key features that we believe make the difference between an adequate ESG and one that is truly powerful in its ability to uncover…
Tackling the growing risk of cyber crime
The risk of cyber-attacks on financial institutions is highly topical but not a new issue. However, what is changing, and rapidly, is the scale, frequency and sophistication of attacks. Financial institutions rely on technology to deliver convenient internet services to customers and to operate…
Future-proofing infrastructure assets: building capital-efficient infrastructure in the age of austerity
This report will examine the tools and techniques that can help drive capital efficiency in infrastructure, as well as the business models and procurement arrangements that create incentives to rein in costs, while maximising performance and operational efficiency
Integrating Risk into Pre-Trade Analysis: Practical Ways of Bringing Credit, Liquidity, Funding and Regulatory Costs into an Integrated Profitability Framework
As regulations in the derivatives market continue to be rolled out and implemented, financial institutions face growing pressure on their current business models. To survive and thrivein this new era of derivatives trading, today’s practitioners need to adopt a more integrated and holistic approach…
Reinforcing Market Confidence with Consistent Stress Testing
In this paper we will explore how financial institutions are able to systematically increase the confidence from both their customers and regulators by applying integrated and consistent stress testing techniques and methodologies.
Liquidity risk management: assessing and planning for adverse events
This paper takes a close look at the factors involved in the recent crisis and the patterns that resulted in widespread liquidity problems. It also points to specific vulnerabilities faced by financial institutions currently, and highlights best practices for liquidity risk management. Findings…
Optimizing the Capital Ratio under Basel III
Basel III stresses the integration between liquidity and credit risk, and the need to manage both from an enterprise-wide risk-management context. This demands a new enterprise-wide organization of tasks, processes, and calculation infrastructure, specifically in terms of systemsintegration, data…
Deriving Greater Enterprise-wide Risk Insight from Stronger Data Quality Management
The main issues associated with data quality in banking demonstrate that data silos continue to be the main cause of data quality issues. The paper outlines best practices banks can leverage to improve data accuracy, quality, and access across the organization.
Market Risk Analytics: Where Are We Now?
This report, based on a survey of 31 major banks, explores the current state of market risk analytics across the banking sector. It looks at the progress being made in the implementation of new market risk frameworks and infrastructure and the key challenges facing banks in facilitating these…
How is regulatory stress-testing shaping the future for banks?
Out of the shortcomings exposed in banks’ traditional risk managementprocesses during the recent global financial crisis, comes the critical need for improvement. Although the list of needed repairs is long and growing, one particular high-profile risk management requirement is subject to…