Operational risk is fundamentally different from all other risks taken on by a bank. It is embedded in every activity … varies considerably, operational risk tends to represent about 10-30% of the total risk pie, and has grown rapidly since the … – small changes in the data have dramatic impacts on modeled output – and thus required operational risk capital is unstable …

Banks as financial intermediaries are broadly exposed to a wide range of economic and financial risk factors. We parse … climate risk into its two main types: physical risk such as sea level rise and transition risk such as climate related policy … through which climate related risks can impact banks’ risk profiles with particular attention to credit risk, the dominant …

Stress testing has become a tool of choice in banking for risk managers and regulators alike, and it is used more … widely as a way to assess resilience to severely adverse events. Yet even the most creative risk manager would have been …

differences in macro risk factor sensitivities …