This paper explores the development of enterprise risk management as a function of the development of risk-based capital across the world over the last two decades. The paper identifies a clear correspondence between the emergence of RBC and ERM. The development of RBC worldwide was triggered by...

Risk culture is essential for the success of enterprise risk management (ERM). Enterprise riskmanagement is different from silo risk management where risks were mainly managed by onedepartment. Enterprise risk management means that the risk management is integrated fromBoard to the last employee...

Businesses are the main drivers of any economy and impact all the economic actors explicitly or implicitly. According to Gupta (2010) accountability, transparency, fairness, and responsibility of firms on legal social, and economic grounds are crucial for the wellbeing of every entity of a...

A business value is created by identifying the risks in the business and developing a risk mitigation plan. The only identification of risks is of little use unless an effective advance plan is developed and implemented to reduce either the likelihood or impact or both of the events. In this...

This paper examines the financial stability implications arising from securitization markets, with one eye on the past and another on the future. The paper begins by deriving a number of “lessons learned” based on an examination of key industry developments in the years before the crisis....

In choosing financial products and services, consumers often rely on financial advisers to recommend products or services. With surprising frequency, these advisers receive side payments or other forms of compensation from the firms that provide the products or services the advisers recommend....

In this paper, I review some selected literature about or related to the monetary neutrality and show that specific aspects of the monetary (non-)neutrality are actually derived from the underlying welfare consideration and thus their validity or desirability depend on the current state and way...

The global financial and economic crisis of the late 2000s highlights the ongoing tug-of-war between those who pull toward free markets and those who pull toward strict regulation of markets. It also highlights the sometimes parallel and sometimes perpendicular tug-of-war between those who pull...

This article discusses some of the challenges present in embedding Enterprise Risk Management issues like corporate governance, independence of CRO, challenges in implementing three lines of defense model, lack of risk knowledge in the first line of defense, lack of risk qualification in the...

Our analysis reveals that banks could develop capital-constrained by holding nonperforming household debts supported by central bank liquidity. We demonstrate the sequential responses to nonperforming assets on retained earnings, capital reserve, and new equity issuance. With capital reserves,...