Valuation Risk (VR) is the risk that an entity will experience a loss due to the inaccurate determination of the fair … value of the financial instruments on its balance sheet. This risk is particularly significant for financial instruments …, the European Systemic Risk Board warned that the substantial amounts of instruments with complex features and limited …

Identifying the relevant risk factors and their interdependence is central to understanding the risk exposures and … vulnerabilities of a financial institution. It is needed for risk management, solvency assessment and stress testing. We assemble a … unique dataset of risk factors relevant for insurers which are different than for banks, although they share exposure to …

This article takes a look at the major accounting policies pertinent to risk management functions of banks … divergence in policies in Indian banks versus internationally especially in credit and interest rate risk. It also finds …

Cyber risk, a type of operational risk, is today considered a key component in the enterprise risk management framework …. Under BASEL regulations, a bank could recognize the risk mitigating impact of the Cyber Liability Insurance (CLI) contract … while calculating the minimum operational risk capital requirement. Despite this benefit and the onerous data protection …

examinations is what Comptroller of the Currency Eugene Ludwig calls “supervision by risk,” i.e., exams which focus on evaluating … the quantity of risk exposure in an institution and determining the quality of the risk management systems in place to … control that risk. Taking a similar approach, Ricki Helfer, Chairman of the FDIC notes, the exam focus will be more of a …

We study solvency contagion risk in the UK banking system from 2008 to 2015. We develop a model that only accounts for …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … estimate bank biases at the credit level by comparing bank-generated risk estimates within loan syndicates. The biases are … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … estimate bank biases at the credit-level by comparing bank generated risk estimates within loan syndicates. The biases are … addition, we find that low-capital banks' risk estimates have less explanatory power than those of high-capital banks with …

like credit risk, market risk, liquidity risk, interest rate risk and so on. For them, financial risks pose a far more … the financial risks. Little do they realise the significance of non-financial risks (NFRs), such as operational risk …, conduct risk, and compliance risk. These NFRs have a potential to wreak havoc on their financial objectives, apart from …