Organisation of YoungPro Media

𝐆𝐥𝐨𝐛𝐚𝐥 𝐓𝐫𝐞𝐧𝐝𝐬 𝐢𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: 𝐒𝐤𝐢𝐥𝐥𝐬 𝐍𝐞𝐞𝐝𝐞𝐝 𝐟𝐨𝐫 2024 & 𝐁𝐞𝐲𝐨𝐧𝐝 The landscape of financial risk management is rapidly evolving, and staying ahead of the curve is essential. Join us for an insightful webinar, where we shed light on the tools, competencies, and strategies shaping the future of Risk Management. 𝘞𝘩𝘰 𝘠𝘰𝘶'𝘭𝘭 𝘔𝘦𝘦𝘵 𝘢𝘵 𝘵𝘩𝘦 𝘞𝘦𝘣𝘪𝘯𝘢𝘳 🗣️ Host: Mr. Ripul Dutt, Founder, Risk Inn 🎤 Guest Speaker: Mr. Gabriel Ryan, Vice President, DBS Bank Singapore Our Guest Speaker, a seasoned leader in financial services with a wealth of experience across banking, wealth management, securities, and insurance, will share his insights into the key trends transforming risk management. With expertise in credit risk, advanced data analytics, and a history of working alongside senior leaders, he brings a unique perspective to the challenges and opportunities in the financial sector. This is a must-attend for anyone eager to understand how risk management is evolving and how you can stay ahead in a data-driven world. Whether you’re embarking on your journey in risk management or looking to sharpen your strategic insight, this session will provide invaluable guidance. Don’t miss out, register now to equip yourself with the knowledge and skills necessary for 2024 and beyond. 𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐋𝐢𝐧𝐤: https://shorturl.at/v2ZEc 👉 Join 𝐆𝐥𝐨𝐛𝐚𝐥 𝐂𝐚𝐫𝐞𝐞𝐫𝐬 𝐂𝐥𝐮𝐛 https://shorturl.at/MeAdw (𝘞𝘦 𝘷𝘦𝘳𝘪𝘧𝘺) Ripul D. Gabriel Ryan, FRM Amey Tawde Global Careers Club (GCC) Avadhoot Muli Umar Siddiqui Aman Sharma #riskmanagement #creditrisk #datadriven #riskanalytics #riskstrategy #fintech #banking #financecareers #riskassessment #financialservices #riskmitigation #financialplanning #cyberrisk #operationalrisk #regulatorycompliance #frm #cfa #scr #riskcontrols #marketrisk #enterpriserisk #financialmodeling #riskframework #riskmanagementsolutions #dataanalytics #financeriskmanagement #riskprofessionals #riskinn

𝐑𝐞𝐚𝐜𝐭𝐢𝐯𝐞 𝐭𝐨 𝐏𝐫𝐨𝐚𝐜𝐭𝐢𝐯𝐞: 𝐄𝐱𝐩𝐥𝐨𝐫𝐢𝐧𝐠 𝐂𝐨𝐮𝐧𝐭𝐞𝐫𝐜𝐲𝐜𝐥𝐢𝐜𝐚𝐥 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐨𝐟 𝐈𝐅𝐑𝐒 9 This insightful 2023 study evaluates the cyclicality of loan loss provisions under IFRS 9, focusing on its Expected Credit Loss (ECL) model during crises such as COVID-19. The research analyzes whether IFRS 9's forward-looking approach reduces financial instability by mitigating procyclicality, a critical flaw under IAS 39. The authors assess the model’s effectiveness in times of economic stress providing key insights for Financial Risk Managers and Regulators. 🔍 𝐖𝐡𝐚𝐭 𝐌𝐚𝐤𝐞𝐬 𝐓𝐡𝐢𝐬 𝐏𝐚𝐩𝐞𝐫 𝐄𝐬𝐬𝐞𝐧𝐭𝐢𝐚𝐥? This paper provides one of the first empirical tests of IFRS 9’s performance under a real-world global stress scenario, offering vital insights to enhance financial stability through improved credit risk management practices 💡 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 The study examines 51 Eurozone banks over seven years, revealing the complex effects of IFRS 9, highlighting necessity of strong statistical methods to understand provisioning behaviors under varying conditions. A. 𝐏𝐫𝐨𝐜𝐲𝐜𝐥𝐢𝐜𝐚𝐥𝐢𝐭𝐲 𝐯𝐬. 𝐂𝐨𝐮𝐧𝐭𝐞𝐫𝐜𝐲𝐜𝐥𝐢𝐜𝐚𝐥𝐢𝐭𝐲: The authors observed that while IFRS 9 initially exhibited procyclical tendencies (consistent with IAS 39), there was limited evidence of countercyclical movement in loan loss provisions during 2020. While this finding offers some optimism, the authors caution that further data and analysis are required to confirm the sustained effectiveness of IFRS 9 during various stress scenarios. We'd love to hear your thoughts on this in the comments below 👇 B. 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐯𝐞 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡 & 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐢𝐧 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧: According to the authors, IFRS 9's approach, considering macroeconomic factors, offers potential improvements over IAS 39. However, they note challenges related to managerial discretion and uneven application across banks, which could affect the model's consistency and comparability. The study emphasizes the vital need for continuous oversight of provisioning models to achieve the perfect balance between prudence and financial stability. A big thanks to the authors for delivering such a profound and impactful analysis, truly a deep dive into this essential topic! Source: https://shorturl.at/Z3XOw 𝗘𝗻𝗷𝗼𝘆𝗲𝗱 𝗥𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗶𝘀? Join a global vibrant community of ~15000 finance and risk management professionals at Risk Inn 𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗻𝗱 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱 🤝 https://bit.ly/4dXIc2h (𝘞𝘦 𝘝𝘦𝘳𝘪𝘧𝘺) #finance #riskmanagement #creditrisk #ifrs9 #accountingstandards #banking #ifrs9limitation #globalbanking #financialstability #creditloss #countercyclical #frm #cfa #scr #rai #marketrisk #irrbb #financialregulations #eclmodel #bankingregulations #ias39 #ifrsstandards #financialriskmanagement #big4 #loanprovisions #capitaladequacy #gsibs #financialcrisis #eurozonebanks #businessfinance #riskinn

𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐢𝐬𝐤 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭: 𝐔𝐧𝐥𝐞𝐚𝐬𝐡𝐢𝐧𝐠 𝐭𝐡𝐞 𝐏𝐨𝐰𝐞𝐫 𝐨𝐟 𝐌𝐨𝐧𝐭𝐞 𝐂𝐚𝐫𝐥𝐨 𝐒𝐢𝐦𝐮𝐥𝐚𝐭𝐢𝐨𝐧 This 2024 study published in International Scientific and Practical Conference, highlights the transformative use of Monte Carlo simulation for financial risk assessment and investment decision-making. 🔍 𝐖𝐡𝐲 𝐑𝐞𝐚𝐝 𝐭𝐡𝐢𝐬 𝐩𝐚𝐩𝐞𝐫? The paper explores the application of Monte Carlo methods in evaluating economic risks and improving project management under uncertain conditions. It details algorithms for incorporating randomness into investment cycle modeling. 💡 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬  1. 𝐑𝐢𝐬𝐤 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐑𝐞𝐝𝐞𝐟𝐢𝐧𝐞𝐝: Combines sensitivity analysis with probability-based scenarios, generating robust probabilistic distributions of financial outcomes (e.g., NPV). 2. 𝐂𝐨𝐦𝐩𝐮𝐭𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞: Automates iterations to evaluate project outcomes using random sampling, leveraging tools like the Risk-Master software. 3. 𝐃𝐚𝐭𝐚-𝐃𝐫𝐢𝐯𝐞𝐧 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬: Introduces methods to estimate risk distribution and account for correlated variables, addressing potential biases. 📈 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐚𝐥 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: Monte Carlo simulation enhances investment decision-making by addressing variability and uncertainty in cash flow projections. Its combination with statistical tools and game theory enables more optimistic and precise risk evaluations compared to traditional methods. This research underscores the critical role of accurate input data and correlation analysis in ensuring reliable results. By refining economic risk modeling, the study provides valuable insights for professionals in finance and investment planning. Source : https://shorturl.at/2rLPk 𝗘𝗻𝗷𝗼𝘆𝗲𝗱 𝗥𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗶𝘀? Join a vibrant community of 10000+ finance and risk management professionals at Risk Inn 𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗻𝗱 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱 🤝  https://bit.ly/4dXIc2h (𝘞𝘦 𝘝𝘦𝘳𝘪𝘧𝘺) #riskmanagement #montecarlosimulation #financialrisk #investmentstrategy #projectmanagement #decisionmaking #uncertaintyanalysis #dataanalytics #businessstrategy #financialmodeling #quantitativerisk #simulationtools #economicforecasting #businessanalytics #projectevaluation #riskassessment #dataanalysis #statisticalmodeling #investmentrisk #decisionanalytics #complexsystems #economicmodeling #financialplanning #probabilityanalysis #businessinsights

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐑𝐢𝐬𝐤 𝐚𝐧𝐝 𝐑𝐞𝐭𝐮𝐫𝐧: 𝐂𝐀𝐏𝐌 𝐚𝐧𝐝 𝐅𝐚𝐦𝐚-𝐅𝐫𝐞𝐧𝐜𝐡 𝐓𝐡𝐫𝐞𝐞-𝐅𝐚𝐜𝐭𝐨𝐫 𝐌𝐨𝐝𝐞𝐥 This foundational paper by the Tuck School of Business demystifies two key models: The Capital Asset Pricing Model (CAPM) and The Fama-French Three-Factor Model for analyzing investment risks and returns. 🔍 𝐖𝐡𝐚𝐭’𝐬 𝐍𝐞𝐰? The paper explains the evolution from CAPM's single-factor model to the Fama-French framework, which incorporates size and value factors, offering a richer explanation of asset returns. 💡 𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐚𝐭 𝐚 𝐆𝐥𝐚𝐧𝐜𝐞: 𝐑𝐢𝐬𝐤-𝐑𝐞𝐭𝐮𝐫𝐧 𝐓𝐫𝐚𝐝𝐞𝐨𝐟𝐟: 1) CAPM links higher expected returns to systematic market risk (beta), providing a baseline for asset evaluation. The Fama-French model extends this by introducing size (SMB) and value (HML) factors to capture additional risks. 2) Diversification reduces unsystematic risk, emphasizing the importance of systematic factors in return predictions. Fund Manager Evaluation: 3) CAPM and Fama-French models can identify whether excess returns result from manager skill or mere exposure to risk factors. 📈 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐚𝐥 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: These models guide investors in constructing well-diversified portfolios, analyzing mutual funds, and making informed investment decisions based on risk-reward preferences. Source: https://shorturl.at/FMeq4 𝗘𝗻𝗷𝗼𝘆𝗲𝗱 𝗥𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗶𝘀? Join a vibrant community of 10000+ finance and risk management professionals at Risk Inn 𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗻𝗱 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱 🤝  https://bit.ly/4dXIc2h (𝘞𝘦 𝘝𝘦𝘳𝘪𝘧𝘺) #finance #investing #riskmanagement #portfoliotheory #capm #famafrench #financialmodels #systematicrisk #unsystematicrisk #returns #investments #riskreturn #financialanalysis #mutualfunds #diversification #valueinvesting #growthinvesting #assetmanagement #beta #stockmarket #marketrisk #sizereffect #valuerisk #financialtheory #investmentstrategies

𝐂𝐫𝐚𝐜𝐤𝐢𝐧𝐠 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐑𝐢𝐬𝐤 𝐏𝐚𝐫𝐭 𝐁: 𝐇𝐨𝐰 𝐌𝐚𝐜𝐡𝐢𝐧𝐞 𝐋𝐞𝐚𝐫𝐧𝐢𝐧𝐠 𝐢𝐬 𝐄𝐧𝐡𝐚𝐧𝐜𝐢𝐧𝐠 𝐒𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐑𝐢𝐬𝐤 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭𝐬 Seeing the strong response to Part 1, which received 18,000+ impressions, here’s Part 2 on the subject, where we discuss a 2022 study offering deeper insights into the supervisory approach to liquidity risk. Using real-world data from the Portuguese banks between 2014 and 2021, the study highlights how advanced models like XGBoost are reshaping liquidity risk assessment and providing tools for stress testing and Early Warning Systems (EWS). 𝐖𝐡𝐲 𝐘𝐨𝐮 𝐒𝐡𝐨𝐮𝐥𝐝 𝐑𝐞𝐚𝐝 𝐭𝐡𝐢𝐬 𝐏𝐚𝐩𝐞𝐫 For those in banking and financial risk management, this paper demonstrates how supervisory bodies can leverage ML to achieve more precise, scalable, and replicable risk assessments. It’s a must-read for anyone seeking to align with modern regulatory expectations while building a resilient liquidity framework. 💡 𝐓𝐨𝐩 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐭𝐨 𝐄𝐥𝐞𝐯𝐚𝐭𝐞 𝐑𝐢𝐬𝐤 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭! 1. 𝐗𝐆𝐁𝐨𝐨𝐬𝐭 𝐋𝐞𝐚𝐝𝐬 𝐭𝐡𝐞 𝐖𝐚𝐲: The paper highlights that XGBoost outperformed both traditional statistical models, such as logistic regression, and other machine learning algorithms, like Random Forest, in terms of accuracy and interpretability. This makes it particularly suited for supervisory liquidity risk classification tasks. 2. 𝐌𝐮𝐥𝐭𝐢-𝐂𝐥𝐚𝐬𝐬 𝐂𝐥𝐚𝐬𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: The authors propose and implement a more nuanced multi-class classification system under the European Central Bank (ECB)’s Risk Assessment System (RAS). This framework categorizes liquidity risk into four levels: low, medium-low, medium, and high, enhancing the granularity and interpretability of risk profiles.  3. 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 & 𝐄𝐚𝐫𝐥𝐲 𝐖𝐚𝐫𝐧𝐢𝐧𝐠 𝐒𝐲𝐬𝐭𝐞𝐦𝐬: By integrating scenario analysis tools with EWS, the study offers practical solutions for forecasting and mitigating liquidity crises before they escalate. Kudos to the authors for their visionary work! Want to dive deeper? 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗮𝘁𝘁𝗮𝗰𝗵𝗲𝗱 𝐩𝐚𝐩𝐞𝐫! 𝐒𝐨𝐮𝐫𝐜𝐞: https://shorturl.at/Vfnln 𝗘𝗻𝗷𝗼𝘆𝗲𝗱 𝗥𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗶𝘀? Join a vibrant community of 10000+ finance and risk management professionals at Risk Inn 𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗻𝗱 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱 🤝 https://bit.ly/4dXIc2h (𝘞𝘦 𝘝𝘦𝘳𝘪𝘧𝘺) #machinelearning #riskmanagement #liquidityrisk #bankingsupervision #financialregulation #stresstesting #earlywarningsystem #datascienceinfinance #riskassessment #xgboost #fintechinnovation #financialstability #marketrisk #creditrisk #frm #scr #cfa #rai #supervisorytechnology #bankinginnovation #creditrisk #dataanalytics #economicpolicy #europeancentralbank #financialmodeling #srep #algorithmicfinance #aiinbanking #regulatorycompliance #bigdata #predictiveanalytics

🌟 𝐌𝐞𝐭𝐚 rolled out its 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐝𝐬 𝐟𝐞𝐚𝐭𝐮𝐫𝐞 on September 20, 2022, for brands looking to collaborate with local retailers. This feature allows brands to showcase their products and connect consumers directly to local delivery options. 🚚 The timing couldn’t be better, as more people have turned to e-commerce and social media for their shopping needs especially during and after the pandemic. 🛍️ With Collaborative Ads, brands can forge stronger ties with their local communities while giving retailers a boost. It's a win-win situation that makes shopping not just easier but also more connected to local businesses! 🤝 𝐇𝐨𝐰 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐢𝐬 𝐭𝐡𝐢𝐬 𝐟𝐞𝐚𝐭𝐮𝐫𝐞? Let us know through your comments! 💬 #metaads #retail #ecommerce #shopping #d2c

𝐃𝐞𝐞𝐩 𝐋𝐞𝐚𝐫𝐧𝐢𝐧𝐠 𝐌𝐨𝐝𝐞𝐥𝐬 𝐟𝐨𝐫 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐢𝐬𝐤 𝐏𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐨𝐧 This important paper from 2023 published in the 𝘑𝘰𝘶𝘳𝘯𝘢𝘭 𝘰𝘧 𝘈𝘱𝘱𝘭𝘪𝘦𝘥 𝘔𝘢𝘵𝘩𝘦𝘮𝘢𝘵𝘪𝘤𝘴 𝘢𝘯𝘥 𝘕𝘰𝘯-𝘓𝘪𝘯𝘦𝘢𝘳 𝘚𝘤𝘪𝘦𝘯𝘤𝘦𝘴 introduces a revolutionary deep learning framework for financial risk assessment and prediction, pushing the boundaries of what's possible in risk management. 🔍 𝐖𝐡𝐚𝐭’𝐬 𝐍𝐞𝐰? The study proposes a multi-dimensional, multi-granularity cascade forest model (grcForest) optimized with ResNet structures and XGBoost classifiers. It enhances model accuracy for unbalanced financial datasets, demonstrating robust predictive capabilities. 💡 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐚𝐭 𝐚 𝐆𝐥𝐚𝐧𝐜𝐞: 1. 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐑𝐢𝐬𝐤 𝐌𝐨𝐝𝐞𝐥𝐢𝐧𝐠: The paper introduces a framework that improves feature learning using residual networks, ensuring stability in predictions for time-series data. 2. 𝐈𝐧𝐭𝐞𝐫𝐛𝐚𝐧𝐤 𝐋𝐞𝐧𝐝𝐢𝐧𝐠 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐒𝐢𝐦𝐮𝐥𝐚𝐭𝐢𝐨𝐧: The authors model the domino effects of bank failures within lending networks, factoring in dynamic assets, liabilities, and adjustable default rates. 3. 𝐀𝐝𝐚𝐩𝐭𝐢𝐯𝐞 𝐓𝐞𝐜𝐡𝐧𝐢𝐪𝐮𝐞𝐬: : The paper shows that replacing random forests with XGBoost enhances the grcForest model’s precision, particularly in systemic risk prediction. 4. 𝐀𝐜𝐜𝐮𝐫𝐚𝐜𝐲 & 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞: The grcForest model achieved an AUC of 0.8224, recall of 0.8319, and accuracy of 0.9732, outperforming logistic regression, LSTM, and BP neural networks. 📈 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐚𝐥 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: The framework aids banks and regulators in identifying systemic risks and implementing proactive measures. It is particularly effective for state-controlled banks, achieving a 100% risk-level prediction rate when using an adaptive weighted Bayesian classifier. Whether you’re a risk manager or financial strategist, this study exemplifies the transformative potential of AI-driven approaches in financial risk management. Source: https://shorturl.at/PIMKs 💡 Pro Tip: Join the discussion in global community of over 8,000 risk professionals! 👉 Join 𝐆𝐥𝐨𝐛𝐚𝐥 𝐂𝐚𝐫𝐞𝐞𝐫𝐬 𝐂𝐥𝐮𝐛 https://shorturl.at/MeAdw (𝘞𝘦 𝘷𝘦𝘳𝘪𝘧𝘺) #financialriskmanagement #deeplearning #riskprediction #systemicrisk #grcforest #xgboost #residualnetworks #interbanklending #fintechinnovation #riskassessment #machinelearninginfinance #predictiveanalytics #marketrisk #frm #scr #rai #aiinfinance #bankingrisk #riskmodeling #financialanalytics #creditrisk #financialstability #riskmitigation #cfa #datadriveninsights #financialtechnology #aiapplications #financialdecisionmaking #bigdatafinance #financeresearch #riskinn

𝐌𝐨𝐮𝐧𝐭𝐚𝐢𝐧𝐬 𝐚𝐧𝐝 𝐌𝐚𝐫𝐤𝐞𝐭𝐬: 𝐓𝐡𝐞 𝐀𝐫𝐭 𝐨𝐟 𝐌𝐚𝐧𝐚𝐠𝐢𝐧𝐠 𝐑𝐢𝐬𝐤𝐬 𝐄𝐯𝐞𝐫𝐲𝐰𝐡𝐞𝐫𝐞 Whether navigating a steep Himalayan trail or managing risks in a financial institution, the underlying principles share a striking resemblance. Last weekend, as I hiked through the Himalayas, each step offered a subtle lesson in Risk Management, balancing caution with confidence Much like a hiker’s journey, where the reward comes not only from reaching the summit but also from enjoying the stunning views along the way, Risk Managers find success in more than just profitability. It’s about achieving a balance, maintaining stability while pursuing growth. Both require careful planning, constant awareness of potential obstacles, and the ability to adapt to ever-changing conditions! Let me expand on this further... 1. 𝐑𝐢𝐬𝐤 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: In finance, identifying risks involves spotting vulnerabilities like credit defaults, operational inefficiencies, or market disruptions, akin to a hiker spotting loose rocks or unexpected wildlife on the trail 2. 𝐄𝐱𝐩𝐨𝐬𝐮𝐫𝐞 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭: For hikers, estimating the steepness of a trail or the proximity of potential hazards (wildlife, landslide) is vital. Similarly, financial institutions measure exposure, such as a loan portfolio's sensitivity to economic downturns or market shifts, to evaluate the true scale of risk. 3. 𝐃𝐞𝐟𝐢𝐧𝐢𝐧𝐠 𝐑𝐢𝐬𝐤 𝐀𝐩𝐩𝐞𝐭𝐢𝐭𝐞: For financial institutions, defining risk appetite means striking a balance between potential returns and the probability or magnitude of losses, akin to a hiker choosing whether to forge ahead or turn back based on conditions. 4. 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐄𝐱𝐞𝐜𝐮𝐭𝐢𝐨𝐧: In hiking, based on your risk assessment, you adjust your route, timing, and gear to ensure safety. Similarly, financial institutions implement strategies like diversification, credit controls, or advanced cybersecurity measures to mitigate risks. For those who thrive on analyzing challenges, anticipating outcomes, and devising strategies, a career in risk management offers endless opportunities to navigate uncertainty and reach new summits of success. Discover resources at Risk Inn for more What’s your 'trail strategy' for navigating risks in your career or personal life? Share your thoughts in the comments below! 𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗻𝗱 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗲𝗱 🤝 https://bit.ly/4dXIc2h (𝘞𝘦 𝘝𝘦𝘳𝘪𝘧𝘺) #riskmanagement #careerpath #strategicthinking #financialplanning #decisionmaking #riskassessment #adaptability #problemsolving #riskappetite #exposuremanagement #financialinstitutions #mitigationstrategies #creditrisk #operationalrisk #cybersecurity #marketvolatility #marketrisk #liquidityrisk #businessstrategy #careergrowth #hikinglessons #successmindset #leadershipskills #professionaldevelopment #lifelessons #growthmindset #riskandresilience #frm #scr #rai #cfa #riskinn

𝐁𝐞𝐲𝐨𝐧𝐝 𝐭𝐡𝐞 𝐁𝐚𝐬𝐢𝐜𝐬: 𝐌𝐮𝐥𝐭𝐢𝐬𝐭𝐚𝐠𝐞 𝐏𝐫𝐨𝐠𝐫𝐚𝐦𝐦𝐢𝐧𝐠 𝐟𝐨𝐫 𝐓𝐚𝐢𝐥𝐨𝐫𝐞𝐝 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 As the financial landscape faces increasing complexity, leveraging stochastic frameworks is becoming a must-have for informed decision-making. In the constantly changing landscape of finance, it's essential to manage portfolio risks dynamically and make the most of derivatives to maintain a competitive edge. This recent paper explores an innovative framework aimed at enhancing portfolio performance and effectively managing risk. 🔍 𝐖𝐡𝐚𝐭’𝐬 𝐍𝐞𝐰? The paper breaks ground by introducing the Volatility Index (VIX) as a direct investment asset class, complementing traditional portfolios. It presents actionable insights for a 6-month investment horizon, highlighting the interplay between derivatives and risk-adjusted returns. 💡 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬: 1. 𝐃𝐲𝐧𝐚𝐦𝐢𝐜 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: The authors propose integrating equity options and VIX as asset classes, enabling robust hedging and speculative strategies, particularly in uncertain markets. 2. 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐑𝐢𝐬𝐤 𝐌𝐞𝐚𝐬𝐮𝐫𝐞𝐬: The paper utilizes Conditional Value-at-Risk (CVaR) to ensure superior tail-risk control and improved risk-adjusted returns, offering a sophisticated method to balance risk and reward. 3. 𝐌𝐮𝐥𝐭𝐢𝐬𝐭𝐚𝐠𝐞 𝐒𝐭𝐨𝐜𝐡𝐚𝐬𝐭𝐢𝐜 𝐏𝐫𝐨𝐠𝐫𝐚𝐦𝐦𝐢𝐧𝐠: This research adopts a scenario-driven approach for dynamic decision-making, factoring in market volatility and diverse investor risk preferences. 4. 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐚𝐥 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: The study examines real-world strategies such as protective puts, covered calls, and straddles, showcasing how portfolios can adapt across varying market conditions. For portfolio managers and financial engineers, this model offers tools to dynamically shape return distributions and optimize performance in incomplete markets. Whether you’re an FRM, CFA, or simply enthusiastic about financial innovation, this paper provides a wealth of insights to enhance your risk management skills. A big thank you to the authors! What do you think about integrating derivatives like the VIX into portfolio optimization? Let’s discuss in the comments! Source: https://shorturl.at/V2fYs 💡 Pro Tip: Join the discussion in global community of over 8,000 risk professionals! 👉 Join 𝐆𝐥𝐨𝐛𝐚𝐥 𝐂𝐚𝐫𝐞𝐞𝐫𝐬 𝐂𝐥𝐮𝐛 https://shorturl.at/MeAdw (𝘞𝘦 𝘷𝘦𝘳𝘪𝘧𝘺) #portfoliomanagement #riskmanagement #stochasticprogramming #financialderivatives #investmentstrategies #dynamichedging #volatilityindex #optionstrading #equityoptions #riskadjustedreturns #cvar #frm #scr #rai #quantfinance #financialrisk #finance #deloitt #jpmorgan #big4 #ey #pwc #financialinnovation #marketvolatility #assetallocation #wealthmanagement #quantitativefinance #riskmodeling #financeresearch #derivativestrategies #hedgingtechniques #investmenttools #financetrends #volatilitytrading #portfoliooptimization #quantfinance #riskinn

🚀 𝐖𝐡𝐚𝐭 𝐄𝐘 𝐑𝐞𝐩𝐨𝐫𝐭 𝐬𝐚𝐲𝐬 𝐚𝐛𝐨𝐮𝐭 𝐈𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞𝐫 𝐌𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐆𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚: 🔹 Market Growth: Set to expand from INR 2,344 crore (2024) to INR 3,375 crore (2026) 📈 🔹 Budget Priority: Brands are dedicating larger portions of their budgets to influencer campaigns. 💰 🔹 Top Platforms: Instagram and YouTube dominate the influencer space. 📸🎥 🔹 Micro & Nano Influencers: Favored for higher engagement and cost efficiency. 🌟 🔹 Sector Leaders: Lifestyle, fashion, and beauty industries lead the way. 👗💄 🔹 Emerging Spenders: E-commerce, FMCG, and automobile industries are increasing their budgets. 🛍️🚗 🔹 Core Objectives: Brand awareness (61%) and audience engagement (32%) are the primary goals. 🎯 🔹 Influencer Selection: Engagement quality and audience alignment are top priorities. ✔️🤝 🔹 Budget Plans: 70% of brands plan to maintain or increase their spending in 2024. 🚀 🔹 Innovative Formats: Shoppable content and interactive campaigns are fueling creativity. 🛒🎬 📌 Key Takeaway: Influencer marketing is here to stay and grow! #InfluencerMarketing #DigitalTrends #MarketingInnovation #Growth