Credit Scoring and Rating
After completing this reading, you should be able to: Compare the credit scoring system to the credit rating system in assessing credit quality and describe the different types of each system. Distinguish between through-the-cycle and point-in-time credit rating systems. Describe…
Governance
After completing this reading, you should be able to: Define risk management responsibilities in an organization and explain the three lines of defense framework for effective risk management and control. Explain the processes that lead to risk-taking, including credit origination,…
Fundamentals of Credit Risk
After completing this reading, you should be able to: Define credit risk and explain how it arises using examples. Explain the distinctions between insolvency, default, and bankruptcy. Identify and describe transactions that generate credit risk. Describe the entities that are…
Climate-related Risk Drivers and their Transmission Channels
After completing this reading, you should be able to: Describe climate-related risk drivers and explain how those drivers give rise to different types of risks for banks. Compare physical and transition risk drivers related to climate change. Assess the potential…
The Credit Suisse CoCo Wipeout: Facts, Misperceptions, and Lessons for Financial Regulation
After completing this reading, you should be able to: Describe the features and mechanics of contingent convertible bonds (CoCos) and explain the rationale for banks to issue them. Explain the rescue of Credit Suisse by Swiss regulators in 2023 and…
Digital Resilience and Financial Stability. The Quest for Policy Tools in The Financial Sector
After completing this reading, you should be able to: Describe characteristics of cyber risks and information/communication technology (ICT) risks faced by financial institutions. Assess the interactions between cyber and ICT risks and financial risks and explain how cyber and ICT…
The Crypto Ecosystem: Key Elements and Risks
After completing this reading, you should be able to: Describe the key elements of the crypto ecosystem, including unbacked crypto, stablecoins, smart contracts, and DeFi services. Describe the structural flaws inherent in various elements of the crypto ecosystem. Describe the…
Artificial Intelligence Risk Management Framework
After completing this reading, you should be able to: Describe how organizations can frame the risks related to AI and explain the challenges that should be considered in AI risk management. Identify AI actors across the AI lifecycle dimensions and…
Financial Risk Management and Explainable, Trustworthy, Responsible AI
After completing this reading, you should be able to: Describe the challenge posed by potential model bias and the ethical and responsible considerations surrounding the implementation of AI-driven solutions in financial risk management. Analyze the potential benefits and challenges of…
Artificial Intelligence and Bank Supervision
After completing this reading, you should be able to: Describe historical evolution and common types of AI-based applications used in the financial sector. Explain the advantages of implementing AI-based applications to the banking services companies and their customers. Discuss the…
