Fighting Terrorism
Over the last few years responding to incidents from the source of terrorism has started to feature heavily in the scope of work Enterprise Risk Managers entertain each day. Until quite recently ERM practitioners have struggled to develop effective controls for battling Activism, Social Disorder, Terrorism and Cyber Risk. This is partly because data around these types of incidents is loaded with paucity but also robust mainstream risk management practices for responding to th
The Flaws in LCR
Last week Causal Capital delivered a speech at the Liquidity Risk Management Symposium in Singapore and the entire presentation page can be found here [LINK]. The focus of our work was on the Liquidity Coverage Ratios LCR banks are now required to measure and while we explained how banks across the planet have been meeting the BCBS guidelines, we also highlighted substantial flaws that exist in the LCR measure. I am going to briefly talk about some of these LCR failings here
Precautionary Principle
The Precautionary Principle in the realm of risk management states that if an action or policy has a suspected possible risk of causing harm to the public, society at large or even to the extended environment; in the absence of scientific consensus that the action or policy is not harmful, the burden of proof that it will do no harm falls on those taking the action. Under the Precautionary Principle the actor becomes responsible for acting and one would have thought that woul
