During the last 40 years, risk management has evolved tremendously. The technologies and methodologies to measure risks have reached impressive levels of sophistication and complexity. However, the 2007 to 2008 financial crisis clearly demonstrates that substantial improvements in the way financial institutions measure and manage risks are still urgently needed. This chapter provides an analysis and discussion of risk management as well as several proposals on how the financial industry should evolve.
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The Link between Default and Recovery Rates: effects on the procyclicality of regulatory capital ratios
This paper analyses the impact of various assumptions about the association between aggregate default probabilities and the loss given default [...]
19 July 2021
The link between default and recovery rates: effects on the procyclicality of regulatory capital ratios
BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and [...]
Credit Risk Scoring Models
Credit scoring models play a fundamental role in the risk management practice at most banks. They are used to quantify [...]
