Archive: Rowe on Risk Management
Rowe on Risk: Thought Leadership for Risk Managers
- 2008 Archive
Dangerous momentum
All too often, we extrapolate tomorrow based on the momentum of today’s trends. But we would do well to adopt our primitive fear of physical momentum when assessing the prospects for financial markets, argues David Rowe
Risk Magazine, December 2008
Macrofinancial risk
A valuable synthesis of financial theory and macroeconomics appears to be emerging. This could enrich both areas, says David Rowe.
Risk Magazine, November 2008
Time for action
Back-office processing has long been the neglected stepchild of the derivatives business. But improved technology and growing systemic risk mean the time is ripe for supervisors to demand T+0 reconciliation, argues David Rowe.
Risk Magazine, October 2008
Towards T+0 reconciliation
The Counterparty Risk Management Policy Group’s third major policy statement appeared in early August – and it presents surprisingly radical demands, says David Rowe.
The meltdown in subprime collateralised debt obligations will affect financial markets for years. One likely result will be a renewed market willingness to reward sound credit underwriting – and therein lies a valuable business opportunity, argues David Rowe.
Risk Magazine, August 2008
Required reading
Over the past year, we have witnessed a unique experiment in what makes financial risk management effective. A succinct supervisory summary of what we have learned should be required reading for all interested parties, argues David Rowe.
In the same way credit risk managers used to question how a loan would be repaid if the primary means of payment were to fail, so banks ought to ask if there is another way to value structured credit investments if market liquidity were to dry up, argues David Rowe.
Are bulge-bracket investment banks really too big to be allowed to fail? Despite the upheavals such a failure would cause, the consequences may have been overblown, argues David Rowe.
Risk Magazine, May 2008
Self referential risk
Even good models and successful product innovations can cause problems when their very success exposes them to the paradox of self-referential risk. David Rowe emphasises the importance of analysing such feedback effects in our risk assessments.
Risk Magazine, April 2008
Wither, originate and distribute
Some argue the crisis in structured credit markets signals the demise of the originate and-distribute model of banking, but this fails to take into account the pattern of all revolutions, argues David Rowe.
Risk Magazine, March 2008
Legal Lethargy
Constraining buy-side institutions to hold only investment-grade securities uses a nearly century-old metric with limited contemporary relevance. David Rowe supports one modest proposed reform.
Risk Magazine, February 2008
Where the buck stops
Risk management units alone cannot avoid the damage from periodic bouts of irrational exuberance. Rather, that responsibility lies with the chief executive, argues David Rowe.
Risk Magazine, January 2008