Tag: risk management

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Thoughts on p2p lending, risks and the future of the industry

Colin Henderson

In times of business renewal and especially following times of crisis it becomes easy to develop simple homely answers to problems. Mark Gimien falls into two traps, namely, coming up with a simple explanation that summarises a diverse set of peer-to-peer lending players, and that of a few simplistic anecdotes designed to explain a complex situation. Person-to-person lending is much riskier than you’ve been told | The Big Money – Slate Her credit rating is not bad. But then you lean back in your chair and wonder, “Wait a second! Why in heaven’s name would someone pay me this kind … Continue reading Thoughts on p2p lending, risks and the future of the industry

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The Canadian bank model secret? | risk aversion

Colin Henderson

The general theme that the ‘Canadian Bank model’ is superior has constantly intrigued me, having been personally involved there. Size and Diversification: They are smaller and less diversified, so some risk mitigation appears there. This is probably the biggest reason. Number: There are only five of them, of any consequence, so a couple of regulators can do a lot of supervision there. Loan restriction: there is a restriction on loan participation relative to capital. Purdy Crawford/ Pan Canadian Investments: The Canadian government did presciently freeze $35 billion in derivatives back in 2007. But no … in aggregate there is no … Continue reading The Canadian bank model secret? | risk aversion

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New thinking for Risk Management | Deloitte

Colin Henderson

Risk management has come under the microscope of late, and clearly new thinking is required.  Recently Andrew Haldane of the Bank of England reflected to the weeks and months that it took to work “stress test” models within banks and how that is clearly unacceptable.  He described stress testing as being less “regulatory arbitrage” and more “regulatory camouflage”. (my post summarising Haldane)  (Haldane – BofE pdf) The Deloitte Center for Banking Solutions has a new report out that focusses on providing for an integrated approach across the enterprise. Integrated Compliance and Risk Management Rethinking the approach Unprecedented market turmoil in the industry … Continue reading New thinking for Risk Management | Deloitte