This month, we travel further on the road to risk management.
We begin with a new topic: natural catastrophes such as volcano eruptions, hurricanes, tsunamis, earthquakes, violent typhoons, etc. All seem to be jostling at the gate!
Beyond risks linked to catastrophe losses, which is handled by the insurance realm majority of the time, there is often a direct impact on the management of investment credit portfolios.
In this month's first article, we offer an analytical and managerial approach to credit portfolios as borrowers are subject to these natural catastrophes.

In the second article we focus on another kind of insurance, variable annuities. While these products have been quite popular and controversial in the US market for quite some time, they are still being developed and increasingly marketed in Europe. We present the European market view of these products, and review the hedging methods of these products.

As always, the full articles are available on our website.

Within the large family of bank risks, catastrophic risk is usually considered an operational risk, likely to affect bank business by damaging it physically. A financial institution can also be exposed in a more indirect way, through numerous intermediary connections to the economic system.

Read more >>