News and Updates
Studies and Reports
February 15, 2019
The bank’s self-analysis of its critical risk deficiencies should serve as a cautionary tale, emphasizing the importance of risk culture, reputation, expert boards, proper compensation programs and strong management support.
January 18, 2019
Global economic stability is currently being threatened by geopolitical risk, climate change and the cyber revolution. What steps can risk mangers take to build a strategic risk framework that can effectively assess the likelihood and potential impact of these dangerous macro risks?
December 21, 2018
Instead of adopting rules geared toward eliminating risky bank behavior, the supervisory agency continues to embrace arcane policies that punish only the byproduct of excessive risk-taking.
November 30, 2018
More than a decade after the crisis, the risk to the FHA’s Mutual Mortgage Insurance Fund from a major mortgage downturn remains uncertain, thanks to a toxic combination of poor model validation, ineffective risk assessment and archaic rules established by the US Congress.
October 26, 2018
Increasingly, so-called automated valuation models are replacing manual appraisals in the mortgage industry. But while AVMs are faster, more accurate and more cost-efficient than traditional appraisals, they could also potentially yield long-term systemic risk.
September 28, 2018
Credit unions are fighting back against Sen. Elizabeth Warren’s proposal to subject them to the Community Reinvestment Act. While it’s not expected to make waves in the remainder of the current Congressional session, the plan could gain momentum if Democrats take the Senate in the midterm elections.
Wells Fargo’s ongoing problems have demonstrated that there are still significant flaws in the so-called CAMELS supervisory rating system for banks. But if the existing rating system is modified to emphasize risk culture, governance and structure, banks may have the proper incentives to steer clear of future financial disasters.
September 4, 2018
Opaque credit derivatives, increased shadow banking and ineffective mortgage regulation were among the market conditions that precipitated the Great Recession. Have we addressed these issues over the past decade, and are there any lingering problems we should be worried about today?
July 27, 2018
Product morphing and fatal process flaws played an important role in the economic meltdown. How have product risk and process risk evolved over the past decade, and do they still present a danger today?
June 8, 2018
Governance problems played a significant role in the economic catastrophe. What were the most glaring issues, and how much progress have we really made with risk governance over the past decade?