Bionic Turtle’s Week in Risk (ending May 15th)

Exam week is here, and everyone is gearing up for Saturday! David and other forum members are busy answering FRM questions in the forum, as everyone is reviewing the concepts before the exam! We want to thank all of our members for joining us on this FRM journey, and we wish all of you luck on the exam this weekend! 🙂

In the forum this week (selected only)

meissner-course

Accrued Interest

Tuckman

qq plot

cvar

Kendall's Tau

Bank, banking and regulation

Eurosystem collateral framework

  • Fintech and Shadow Banks http://johnhcochrane.blogspot.com/2017/05/fintech-and-shadow-banks.htmlOur mortgage system is based on a rather crazy product, the fixed rate mortgage with a costly option to refinance. No other country does this. I know a lot of finance professors, and none of them can tell you the optimal refinancing rule” and a few gems like “The rise of fintech proves that there is no essential economic tie between loan origination and deposits or other short-term financing.
  • [GARP] Banks Need to Revisit CRO Compensation and Board Risk Committee Composition http://trtl.bz/2rh2Z9Z
  • [GARP] Are You Ready for the Next Piece of the FRTB Puzzle? (Credit valuation adjustment, CVA, and its capital implications come into focus) http://trtl.bz/2rgS5Bp

CVA risk capital

International

Brexit

Natural Science, including Climate and Energy

  • The Doomsday Glacier http://www.rollingstone.com/politics/features/the-doomsday-glacier-w481260Someday soon – possibly even by the time you read this – a chunk of the Larsen C ice shelf will break off and float into the ocean that surrounds Antarctica. The crack in the Larsen C, which is a close cousin to the Larsen B that broke up in 2002, has been developing for several years. But in the past few months, it has increased dramatically. As I write this, the crack is more than 100 miles long. Such a collapse of ice shelves is exactly what Mercer predicted would be the first sign that disaster is imminent. When it breaks, it will likely be front-page news and cited as evidence that Antarctica is rapidly falling apart.

Technology, including FinTech and Cybersecurity

  • WannaCry ransomware used in widespread attacks all over the world (securelist.com) http://trtl.bz/2rgYRqw
  • How to Accidentally Stop a Global Cyber Attacks https://www.malwaretech.com/2017/05/how-to-accidentally-stop-a-global-cyber-attacks.html … and: For $10.69, British Researcher Slows Global Cyberattack http://trtl.bz/2qHAWDQ
  • Cyber Crime Fears Drive Up Demand for Anti-Hacker Insurance (bloomberg.com) http://trtl.bz/2qHrArw
  • [NYSE Survey] The Price of Convenience: Communications, Cyber Risk, and Cybersecurity Practices of Corporate Boards http://trtl.bz/2pNaK5GThe survey of 381 corporate directors of publicly traded companies found 90% use unsecured personal email accounts to sometimes communicate with other board members and management, while 49% said they regularly download board meeting materials, reports and company documents onto personal computers and devices.

Diligent_Board_Comm_Report

Data science (primarily R), including Alternative Data

  • [new book] Processing and Analyzing Financial Data with R https://sites.google.com/view/pafdR/home
  • Technical Foundations of Informatics https://info201-s17.github.io/book/index.htmlThe course guide is a self-contained book that teaches you how to work with data using R in modern and reproducable ways. It assumes no technical background, but jumps quickly into setting up the necessary infrastructure for reproducible data science: R, RStudio, Git, an editor, and a command shell.
  • U.S. Federal Government Spending is Now a Single, Unified Data Set http://www.visualcapitalist.com/u-s-federal-governments-spending-data-single-unified-data-set/The data puts records of accounts, budgets, grants, and contracts all in one place, and links this information together in way that has never been done before. Everyday citizens, journalists, and data scientists will be able to see how the government spends money with one consolidated view. Further, this harmonization of accounts will also help to boost transparency, making it easier to spot inefficiencies, waste, and fraud at the federal level.

U.S. Federal Government Spending

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

Future including disruption

  • Artificial Intelligence: The Promise and the Playbook http://a16z.com/2017/05/12/ai-playbook/Building on our popular primer on artificial intelligence, today we’ve launched a microsite to help newcomers — both non-technical and technical — begin exploring what’s possible with AI. The site is designed as a resource for anyone asking the two questions above [How do I get started with artificial intelligence? What can I do with AI in my own product or company?], complete with examples and sample code to help get started; no computer science degree required!
  • Three Revolutions in Urban Transportation (vehicle electrification, automation, and widespread shared mobility) https://www.itdp.org/3rs/ Report here http://trtl.bz/2qiBFd8
  • Lemonade arrives in California (where I live) https://www.lemonade.com/blog/california-were-here/
  • Disrupting Insurance — So Easy a Caveman Can Do It? (1/3) http://trtl.bz/2qHFUk1

Disrupting Insurance

  • Slice is a cool insurance startup that just went live https://blog.slice.is/Slice provides coverage on-demand, and for only the periods of time you need it. The Slice policy automatically begins and ends with your business hours, whether it’s minutes, days or weeks. And, you only pay for the dates and times your policy is active.
  • Programmable blockchains in context: Ethereum’s future by Vinay Gupta (medium.com) http://trtl.bz/2rgH1UKBlockchain explainers usually focus on some very clever low-level details like mining, but that stuff really doesn’t help people (other than implementers) understand what is going on. Rather, let’s look at how the blockchains fit into the more general story about how computers impact society.

Other

Risk Foundations (FRM P1.T1)

Intelligent Risk (May issue) by PRMIA

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)

VIX ARTICLE

Credit risk (FRM P1.T6)

Deloitte’s advanced credit risk platform

Investment risk, including Pensions (FRM P1.T8)

An Algorithm, an ETF and an Academic Study Walk Into a Bar

Current issues (FRM P2.T9)

4 thoughts on “Bionic Turtle’s Week in Risk (ending May 15th)

    1. Hello,

      There are times when we have to focus on material prep, which takes priority over the Week in Risk unfortunately. We are currently preparing videos for the Study Planner, and that takes up a great deal of our time. We are trying to prepare and publish as many new videos as possible for our members before the November exam.

      We appreciate the fact that you enjoy the Week in Risk blog enough to notice that we have not published any recently. We will get back to it as soon as we possibly can. 🙂

      Nicole

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