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Thursday, February 22, 2018

Risk Adjusted ROIC

In our first article on Next Gen Enterprise Risk Management [LINK] we talked about a prevailing trend for managers to move beyond the esoteric ERM practices used to gather data across a company TO the importance of aligning Risk Management initiatives with the actual fabric of the business. In this article, we will explore in part how Risk Management can be connected to the Finance Department.

Tuesday, February 13, 2018

Next Generation ERM

In this posting, we are going to take a reality call on where Enterprise Risk Management is today and why the Next Generation of this management function needs to evolve.

Monday, February 5, 2018

Auditing Control Effectiveness

Not all controls are designed equal, not all risks are equal that we know to be a potential truism, but the deviation between these two places nearly always leaves some organisations exposed.

Monday, January 22, 2018

Ethics in Risk Culture

In our previous blog on the outstanding attributes of a solid Risk Manager [LINK], a few practitioners have asked me various questions about Causal Capital’s 'Grid of Permissibility', and so I thought it prudent to delve into a couple of slides in more detail.

Thursday, January 18, 2018

Attributes of Risk Managers

Working with the London School of Business and Finance, and a set of MBA students on risk management. The topic of interest today is "The scope of a risk manager" (in a bank) and what it takes to make a good risk manager.

It's a nice change from the technically heavy presentations we can wade through at times, and I look forward to any commentary on this blog, as per usual.

Saturday, December 16, 2017

Degenerating Bank's Risk Frameworks

It is a tragic end to the year for risk management in banking where the regulator's fascination with Risk Comparability and Risk Framework Uniformity has reduced banking risk management solutions to nothing more than Risk = BCI x ILM.

Wednesday, November 1, 2017

Project Finance Backtested

Looking back in time is something I recommend risk managers should do from time to time and this week drove me to do just that. In this short blog posting, we are going to take a peep at why and how it is essential for risk managers to see how well they are truly doing and that comes from looking back, it’s more healthy than you may believe, especially if you are honest with yourself.

Sunday, October 29, 2017

When to act on a KRI

In this short blog posting, we have shared a risk management white paper on Key Risk Indicators and when an auditor should act given a specific KRI position.

Tuesday, September 19, 2017

Upending Risk Velocity

The Velocity of Risk is a novel risk measure some Enterprise Risk Managers have started to toy around with and in this article, we explore its application and a method for modelling it.

A presentation that walks through what Velocity of Risk is and where it can be applied is attached to this blog.

Wednesday, September 13, 2017

Applied Risk Appetite

Causal Capital often partners with various risk management solution providers across the planet and tomorrow we are pleased to announce that we will be part of a cohort Risk Management debate hosted by Metricstream [LINK], feel free to pop down to the event and say hi. We have also developed a small presentation on Risk Appetite that will influence our discussion and this document can be accessed from the blog below, please do take a look.

Friday, September 8, 2017

Sound Practices for Fintech

Issued in August and with one month to comment, the Bank for International Settlements has recently released Sound Practices for Implications of Fintech developments on banks and by extension, the supervisors of those banks are captured in this practice brief as well.

Monday, August 14, 2017

Hedge Fund CRO Charter

From a recent discussion on LinkedIn, the following question was put forward: "What are some of the roles a risk manager should play at the public market / equity investment fund?".

In this short article, we'll take a look at the charter of a risk manager, and why not? Actually, let's quickly take a peep at the top risk management position in any firm, the Chief Risk Officer.

Tuesday, June 27, 2017

ERM Decision Trees and ISO 31010

Over the years we have written numerous blogs that share in-depth presentations on different risk modelling methods and in the coming months ahead, Causal Capital is going to increase the number of these technically natured risk management articles.

Today we are going to focus on Decision-Trees from the ISO 31010 Risk Assessment standard, and if you are interested in downloading the presentation associated with this posting, please do continue reading.

Monday, June 12, 2017

Why some risk comparisons are problematic

Elusive Etiological Risks ~ Every once in a while, especially when a specific situation is resonating with society at large, partial intellectuals tend to come forth to put everything into perspective but unless they are careful with their 'etiological typecasting', they chance to further mislead everyone including themselves.

Why are people so bad at assessing risk?

Wednesday, June 7, 2017

Circular 900 a right way forwards

Every once in a while, banking regulators get it right, and Bangko Sentral ng Pilipinas (BSP) has certainly done so with its Circular 900 [LINK] on operational risk.

Sunday, May 21, 2017

Risk Management Interconnectedness

Recent correspondence with a client drew me into a debate on ‘Interconnectedness’ or specifically: It would be good to get your thoughts on the second bullet point – Interconnectedness?

Tuesday, May 2, 2017

New Step-In Risk Guidelines

It has been a long time since we have blogged on this channel, a whole year, that is way too long in the world of banking and risk management. There has also been a lot of requests to bring this portal back into action, so without further ado, we'll attend to that with this new posting on Step-In risk.

Saturday, March 26, 2016

The risk of doing nothing

Norman Marks recently published a blog on "Why do people take risks" [LINK] which has inspired this commentary.

In this quick but explicit blog response, we explore eight iterative considerations that should be transgressed for effective decision making in the realm of risk management.

Friday, February 5, 2016

Risk Management Puzzles

Representing Operational Risk or Enterprise Risk Management for that matter as pieces of a puzzle has always been appealing and that appeal never seems to wear thin. It certainly used to be a bit of a fascination for me but the real magic of a risk framework design doesn't come from identifying the pieces of the puzzle specifically but from interconnecting these elements in a seamless manner.

Putting the pieces of a risk framework puzzle together still seems to be a challenge for risk managers, even today.

Tuesday, January 5, 2016

Board Level Risk Reports Need To Change

One area where Enterprise Risk Management often fails is when it comes to reporting risks to the executive team of a company, its stakeholders or the board. In this posting, we are going to take a look at why risk managers go off the rails with this top level reporting requirement and how these flaws can be addressed.