Knowledge Base Articles
Part III: Cyber Risk Management, Security Controls and Insurance
In continuation of our discussion of cyber risk, this paper investigates the issues of cyber risk management within financial industry. In particular, we look into the process of determining the optimal size of the investments in cyber security as well as the quantification of the appropriate cyber insurance premiums.
Part II: Cyber Risk; A Prime Component of Operational Risk
In continuation of our discussion of cyber risk, this article reviews different methods and models, which can be used to analyse and quantify the risks of information security breaches faced by the contemporary financial industry.
Establishing a Framework for Operational Risk
In this article, we will develop a framework for structuring the operational risk within a company.
Modelling Operational Risk
In this article we conduct a case study of the operational risk capital requirement, with the ambition of comparing it with the Solvency II Standard Formula.
An Introduction to Operational Risk
We will in this article give an introduction to operational risk, and explain the subject as it is defined in Basel II.
September 2018 News Update
We have gathered the most exciting highlights from the digital advice innovation landscape as well as the latest news related to balance sheet risk. Overall, the news indicates positive ground for the growth of automatic financial advisers although the industry has been surprised by the large player's withdrawal from the emerging digital advice offering. On the balance sheet risk side, cyber risk is gaining prominence as an operational risk, while the IFRS 17 is increasingly viewed as a catalyst for business model innovation for the insurers. Additionally, the use of machine learning is penetrating accounting industry, though it is not expected to cause disruption in terms of massive unemployment.
The Dark Side of Digitalisation: Addressing Cyber Risks
The minimal criterion of success is an absence of failure. However, when it comes to information security breaches, it is safe to claim that this criterion is far from being met. A few prominent scandals in recent years demonstrate the scope and impact of such risks on the financial industry, influencing the EIOPA to include a cyber security questionnaire in its Cyber Risk Assessment Package. Gauging cyber risk is a challenging endeavour, marked by the sensitive character of the underlying data and a lack of established academic research within the field. However, Kidbrooke Advisory has formulated its take on the cyber risk assessment.
Balancing Innovation: Use Both Hands in Establishing Robotic Advice!
In the wake of rapid technological advancements and looming regulatory challenges, large players of the British financial industry turn to innovation as a tool to preserve the margins high and keep the customers satisfied. However, the extent to which the multinational giants commit to letting their new offerings cannibalize their traditional businesses varies dramatically.
MiFID II: Are the ETFs the way to go?
MiFID II creates a downward pressure on the conventional investment companies’ margins and influences them to either turn to ETFs as a low-cost solution or take on a full-scale digital transformation of the business. However, there are some pitfalls on the ETF direction side.