Dr. Clifford Rossi is the director of the Smith Enterprise Risk Consortium and professor-of-the-practice and executive-in residence at the Robert H. Smith School of Business, University of Maryland.
Climate models that purport to assess the risk of environmental damage faced by individual properties threaten to distort the market, despite having little demonstrable accuracy.
To strengthen the industry, large regional banks should be subjected to heightened supervision and the Federal Deposit Insurance Corp. should change how it assesses deposit insurance premiums.
The models that underpin the central bank's climate risk management exercise are deeply flawed and unsuited to the task at hand.
The historic election has presented an opportunity for a comprehensive overhaul of the housing finance system after eight years of gridlock.
Revelations from the last several weeks once again underscore the need for effective reputational risk management.
Heightened risk management standards and the "three lines of defense" are supposed to help banks ward off scandal, but they failed miserably.
Despite headwinds working against the mortgage insurance industry, this business could be the catalyst for bringing private capital back to the mortgage market.
Risk management is not limited to assessing potential successes and failures of everyday business. Strategic risk management is just as important.
Financial incentives leading firms to strengthen risk governance internally is better than regulators mandating risk management standards.