Latest Insights

The balance between trust and control

Back in 2010, the American Economic Review published the article Growth in a time of debt, which was penned by Carmen Reinhart and Kenneth Rogoff (Reinhart and Rogoff).

The difference between risk and uncertainty

The FAUC assessment

The world is complex and the future uncertain. What does that mean for the existing models on which we base our expectations? For Prof. Lex Hoogduin, professor of complexity and uncertainty in financial markets and financial institutions and Chairman of LCH Clearnet, it was a reason to set up the Global Complexity Network (GloComNet), an open platform focusing on how to deal effectively with ‘complexity and uncertainty’. Zanders joined last year and together we developed the Framework for Acting under Uncertainty and Complexity (FAUC).

Preparing corporates for credit risk challenges ahead

Increased volatility in financial markets is one of the factors that have driven corporate treasurers to become more aware of the importance of risk management.

The forward-looking provisions of IFRS 9

As of January 2018, new accounting rules will come into effect for financial institutions and listed companies with respect to the measurement of impairments. So far, only a few banks act as early adaptors; most choose to be late followers and ‘watch the hare running’. The new rules are principle-based and simple. The design and implementation, however, can be challenging, especially the treatment of forward-looking aspects.

Public credit ratings: Navigating on faith

The reputation of credit rating agencies (CRAs) was seriously damaged following the fallout of the 2008 financial crisis and the subsequent European sovereign debt crisis. Nonetheless, both regulators and risk managers still often take risk-related decisions 12 based on their faith in public credit ratings.