Bionic Turtle’s Week in Risk (ending Jan 29th)

New Practice Questions

In the forum this week (selected only) or Major News

Banking, Political and regulatory risk, including Systemic Risk (including BIS)

Technology, including FinTech and Cybersecurity

Natural Science, including Climate and Energy

  • The ESG Evolution Continues: France Issues Its First Sovereign Green Bond http://blog.pimco.com/2017/01/25/the-esg-evolution-continues-france-issues-its-first-sovereign-green-bond/ “How can a sovereign bond be green? In a sense, France’s green bonds fit into the existing sovereign bond ecosystem: The new issue is designed to share the same quality rating as its other comparable sovereign issues and to be equally as liquid. However, the new issue will also follow the green bond principles as defined by the International Capital Market Association (ICMA) – meaning the bonds enable capital-raising and investment for new and existing projects with environmental benefits.
  • Will Global Warming Make Hurricane Forecasting More Difficult? https://www.wunderground.com/blog/JeffMasters/will-global-warming-make-hurricane-forecasting-more-difficultHurricanes are heat engines that take heat energy out of the oceans and convert it to the mechanical energy of wind. Thus, hurricane scientists are in broad agreement that global warming should make the strongest hurricanes stronger.”

Exams, Financial Associations (GARP, FRM, CFA Institute) and Careers, including CRO Interviews

Case Studies and Companies, including Strategic or Reputation risk

  • At Wells Fargo, Bank Branches Were Tipped Off to Inspections (Managers and employees at the bank’s roughly 6,000 branches across the U.S. typically had at least 24 hours’ warning about inspections conducted by risk employees) http://www.wsj.com/articles/at-wells-fargo-bank-branches-were-tipped-off-to-inspections-1485253800Banks are expected to have three lines of defense to spot irregularities or problems: its business executives, risk-management professionals and internal auditors. The board of directors is supposed to add another layer for checks and balances. It appears some of these were lacking at Wells Fargo, according to regulators … At Wells Fargo, retail-bank risk executives (some branch employees called them auditors) typically traveled district by district to check on branches, some current and former employees said. But retail-bank executives would usually receive anywhere from 24 to 72 hours’ notice of the inspections, and branch managers typically got one day’s heads up, these people said.
  • Samsung Galaxy Note 7 Crisis Signals Problems at Korea Inc. https://www.nytimes.com/2017/01/23/business/samsung-galaxy-note7-fires.html

Risk Foundations (FRM P1.T1)

 

Quantitative Analysis (FRM P1.T2)

Financial Markets and Products, including Interest Rates, Commodity Risk, and Foreign Exchange (FX) (FRM P1.T3)

Valuation and Risk Models, including Country risk (FRM P1.T4)

Operational risk, including Legal risk (FRM P1.T7)

Investment risk, including Pensions (FRM P1.T8)

Current issues (FRM P2.T9)

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