Introduction Securitizations help European banks lend more. They allow banks to move the credit risks of loans off their balance sheets and use the freed-up capital to support new lending. But since the Global Financial Crisis (“GFC”), securitization volumes in Europe have dropped significantly, while in contrast, the U.S. market has grown, even though U.S. defaults peaked during the GFC. To address this, the EU Commission is reviewing how securitization works in the EU. This

It’s Halloween night in the world of AI and Risk. The lights are dim in the data center, but something is stirring deep within the systems — models that should have been retired long ago whisper back to life. Their logs flicker with activity, unexplained trades appear in audit trails, and risk dashboards pulse with ghostly data points. No, this isn’t a scene from a sci-fi thriller. It’s what happens when model risk management lapses , when biases are left unchecked , and when

WHITEPAPER Today banks are operating under heightened uncertainty. Since early 2025, global markets have experienced considerable volatility, driven by unpredictable policy directions and rapidly shifting economic indicators. This has been reflected in pronounced movements across equity markets and widening spreads in both short and long-term interest rates. One notable development has been the sharp increase in 10-year US Treasury yields following major policy announcements.

Global banks face immense pressure to align daily risk calculations with constantly evolving FRTB mandates and to transform market risk...

Contents CSRBB Product Scope – Banking Book . Aligning CSRBB Methodologies . CSRBB Risk Assessment Methods . CSSRBB Vs IRRBB – Holistic View . Challenges faced by banks in incorporating CSRBB as Pillar II risk . Best Practices for Managing CSRBB Regulatory Compliance . Conclusion . References . Incorporating CSRBB into Pillar II Risk and Capital Requirements Managing credit spread risk in the banking book (CSRBB) is crucial for effective risk management, especially given the

The intersection of geopolitics, large scale economic crime, and artificial intelligence (AI) is rapidly reshaping the global financial...

According to Britannica, bias is a tendency to believe that some people, ideas, etc., are better than others, which usually results in...

As artificial intelligence continues to transform industries, economies, and global systems, it brings with it immense opportunities—and...

Global banks are grappling with the trade-offs between  FRTB IMA  and  SA  approaches. As deadlines for the  Fundamental Review of the Trading Book (FRTB)  draw nearer across many jurisdictions, debates around using the  Internal Models Approach (IMA)  versus the  Standardised Approach (SA)  are intensifying. The decision is not straightforward. In this article, we examine the pros and cons of each approach and discuss how market participants are addressing this challenge. Ba

Mid-90s witnessed the influx of Physics and Maths PhDs to Wall Street in large number. The likes of Goldman, Merrill Lynch and Morgan Stanley would make beelines to the pristine campuses of Columbia, Harvard and Wharton to hire their Quant PhDs as associates to do the complex Maths behind Derivative models. Many of the academically oriented quants (Maths and Physics PhDs) decided to take a shot at this new-found career option with the I-banks to try out what they learnt in

Banks face significant challenges in managing liabilities without contractual maturities—such as demand deposits and savings accounts—due...

The reinsurance sector is undergoing a structural transformation as it grapples with an increasingly complex and interconnected global...

Today I want to talk about one of the basics in the AI Governance world: Algorithmic Risk Assessments.  As the EU AI Act is starting to...

I know at some point, you’ve likely played around with an Instagram filter, tested out a quirky Snapchat lens, and even interacted with...

The Fundamental Review of the Trading Book (FRTB) is a flagship market risk regulation that is a game changer for financial institutions. For FRTB compliance, banks in the United Arab Emirates (UAE) have a choice between the Internal Model Approach (IMA) and the Standardised Approach (SA). Within the SA, banks can use the advanced approach based on risk sensitivities or a simplified standardised approach (SSA). The decision for FRTB compliance should be thought through care

A story 📖   Imagine you have a new idea. It could be great – some sort of innovation , or new project type, something that the client...

Let me start by saying that the future of eCommerce is literally thriving, not just surviving ! E-commerce is on fire! By 2026, the...

There are many developments concerning AI products that rattle the markets such as DeepSeek unveiling, , allegations of cheating ,...

The Monetary Authority of Singapore (MAS) has just released a comprehensive Information Paper on Artificial Intelligence Model Risk Management (AI MRM) . With financial institutions increasingly integrating AI into their operations—including the rapidly evolving generative AI technologies—this guidance arrives at a critical juncture. MAS’s key message is clear: while AI offers immense opportunities to drive innovation, improve efficiency, and enhance customer experiences, it

In today’s fast-evolving financial landscape, structured lending connects capital with need, managing risk with precision. This post kicks off a new series—developed with the help of AI tools—that explores the mechanics of structured lending, its key products, and the game-changing role of technology in the sector. Overview of Structured Lending Structured lending is a creative financing tool designed to meet unique borrowing needs, typically backed by specific collateral lik

Did you know that organizations today can easily identify over 500 distinct risk types in their libraries? Add to this the complexity of overlapping control matrices, hundreds of policies, and SOPs that read like novels. As businesses grow, risk landscapes also evolve—from startups requiring agility to mature organizations contending with intricate ecosystems and complexities. Simplification and Integration: The Core Challenges The true challenge of risk management lies in si

No legacy systems, no “that’s how we’ve always done it,” and absolutely no pre-existing constraints. Just a blank screen, a fresh...

The upcoming United States presidential election can have a significant effect on the shape of banking regulations, with potential ripple effects across the global financial sector. The contrasting philosophies of the candidates with respect to regulations could result in distinctly different paths forward for financial institutions worldwide. Divergent Regulatory Approaches Potential Deregulatory Trajectory A Trump administration would likely pursue a deregulatory agenda, re

We examine the imperative of establishing stringent AI regulations in the healthcare industry, focusing on the ethical, legal, and safety challenges brought about by AI's transformative impact on areas such as diagnostics and personalized treatments. The healthcare industry stands at the precipice of a revolution driven by artificial intelligence (AI). From medical diagnosis and treatment to drug discovery and personalized care, AI promises to transform healthcare delivery a

The manufacturing industry, long an engine of economic growth, stands at the precipice of a paradigm shift. Artificial intelligence (AI) is rapidly transforming production processes, promising unprecedented efficiency, automation, and innovation. However, amidst the excitement, a shadow of risk lurks, demanding careful consideration. Innovation at a Cost: AI-powered robots with superhuman precision, self-optimizing production lines, and predictive maintenance algorithms offe

We examine the diverse facets of AI adoption across multiple sectors, highlighting their unique challenges. Additionally, we provide notable examples of AI application in each sector, illustrating its transformative impact. Artificial intelligence (AI) is rapidly transforming virtually every sector of the economy, from healthcare and finance to manufacturing and transportation. Its ability to automate tasks, optimize processes, and generate insights is driving unprecedented i

President Biden issued an executive order on 30 th October titled "Advancing Responsible Development and Use of Trustworthy Artificial Intelligence" that addresses the governance of AI technologies across various sectors, including financial services. This directive focuses on both fostering AI innovation and managing associated risks. The order was issued just prior to the AI Safey Summit in the UK and was also released before the final text of the EU AI Act. It is important

Beyond processes and technology, a culture of compliance is paramount for long-term success. In our final post, we delve into the human aspect of regulation management. From fostering awareness and accountability to providing continuous training, we discuss how organizations can cultivate a culture where compliance is ingrained in the values and behaviors of every team member.

A reactive approach to compliance management can lead to costly consequences. In this post, we discuss strategies for proactive compliance, emphasizing the importance of staying ahead of regulatory changes. From conducting regular risk assessments to implementing agile compliance frameworks, we explore ways to build resilience and adaptability into your organization's regulatory strategy.

To effectively manage regulations, one must first comprehend the intricate mosaic of compliance standards. This post delves into the diverse regulatory landscape, exploring the differences between industry-specific regulations, international standards, and local laws. By understanding this mosaic, businesses can tailor their compliance strategies to specific requirements and create a robust regulatory framework.

In an era where regulatory landscapes are constantly evolving, the ability to navigate and master regulation management is a critical skill for businesses. This blog post aims to shed light on the challenges and strategies associated with effective regulation management. Introduction : In today's dynamic business environment, compliance with regulations is not just a box to check; it's a dynamic process that requires a nuanced understanding of legal frameworks, industry stan

In this introductory post, we delve into the vast landscape of AI intelligence and explore the potential risks associated with its rapid...

Addressing one of the most pressing issues in AI, this post focuses on the inherent biases present in machine learning algorithms. We...

As AI systems become increasingly complex, understanding their decision-making processes becomes more challenging. This post delves into...

In this post, we shift our focus to the security aspects of AI. Adversarial attacks pose a significant risk to AI systems, and we explore...

AI's increasing role in the workforce raises concerns about job displacement and shifts in the employment landscape. This post explores...

Concluding our series, we examine the role of regulatory frameworks and governance in managing the risks associated with AI intelligence....