Is Regulation of Risk Culture the Missing Piece?

Is Regulation of Risk Culture the Missing Piece?

Greater use of civil and administrative sanctions will steer good corporate behaviour more effectively than prescribed risk culture as a regulatory tool divorced from business relevance, say Dr Michelle Tuveson and Professor Danny Ralph, Directors of the Cambridge Centre for Risk Studies. Their paper “Is Regulation of Risk Culture the Missing Piece? Civil Actions Reconsidered”Read more

Who Believes Forecasters?

Who Believes Forecasters?

Cassandra, the mythological Trojan, was given the power of prophecy but cursed with never being believed.  Modern forecasters generally suffer from the Cassandra predicament. Yet the appetite for prophecy has only expanded. As we enter the new year, it is as appealing now as it ever was to attempt to forecast how a variety ofRead more

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Paris attacks: assembling an economic analysis

Paris attacks: assembling an economic analysis

On 13 November, the city of Paris was attacked by a group of armed gunmen killing 130 people and injuring a further 389. The brutality and atrocity of this attack will have lingering emotional consequences for the people of Paris, France, The European Union and the world, as well as a direct impact on policy,Read more

The dragon stirs: RMB on track to squeeze dollar

The dragon stirs: RMB on track to squeeze dollar

The rise of the Chinese renminbi (RMB) and its increasing importance in cross-border trades has accelerated since the Great Financial Crisis hit the west in 2008-2009. Since then, the US economy has experienced a number of problems in the long-term such as: Unsustainable fiscal deficit; Lowering growth of GDP; Weakening of US Dollar against otherRead more

The Art of Financial Network Science, Part II

The Art of Financial Network Science, Part II

The second annual Financial Risk & Network Science seminar was held on September 9 at the University of Cambridge Judge Business School, in partnership between the Centre and Risk Journals. As with last year, there was a great display of varied and colourful financial network visualisations on show. Network diagrams present vast amounts of data inRead more

Where does cyber risk accumulate for insurers?

Where does cyber risk accumulate for insurers?

“Taxonomy is described sometimes as a science and sometimes as an art, but really it’s a battleground.” ― Bill Bryson, A Short History of Nearly Everything  After attending a cyber-risk accumulation workshop with a variety of cyber risk underwriters, I was moved to spend my morning walks thinking hard about cyber risk accumulation. Where doesRead more

Opening Pandora’s box: Using city-scale risk models to quantify the global cost of catastrophes, and the value of resilience

Opening Pandora’s box: Using city-scale risk models to quantify the global cost of catastrophes, and the value of resilience

In the Cambridge Centre for Risk Studies we have developed a framework to quantify the potential damage from a Pandora’s box of all ills – a comprehensive taxonomy of catastrophes. The methodology and outputs speak directly to the value of investing in resilience. The analysis has been made possible by novel ‘Catastronomics’ techniques to analyseRead more

Welcome to the Boardroom: Have Chief Risk Officers Become Too Prominent?

Welcome to the Boardroom: Have Chief Risk Officers Become Too Prominent?

While participating in this year’s Aspen Critical Issues and Risk Forum, I had the opportunity to hear from a number of non-executive board members on the pressing challenges facing public boards. The theme of the forum addressed effective board governance during times of public scrutiny and how trust might be rebuilt. Board cultures have beenRead more

Eurobond Correlation Network: a case history

Eurobond Correlation Network: a case history

During the last two decades, the European sovereign bond market has been driven not only by the converging mechanism of its common currency, but by the centrifugal forces of trade imbalances and unequal sovereign credit capacity also. The Eurozone government bond spreads experienced “euro convergence” at the end of the 90’s in expectation of theRead more

Eurobond Correlation Network: fearing the Grexit

Eurobond Correlation Network: fearing the Grexit

Over the last five years, fears over a Greek debt and a financial contagion spreading to PIGS countries have dominated Euro Bond markets. Looking into 10 year bond price correlations across the same period, we are able to observe that, in this time, the Greek markets have already decoupled from those of other EU states.Read more