Climate Edition

Bad COP, Good COP, Take 28 This weekend is the COP28 (which stands for the 28th meeting of the conference of the parties (COP) to the UN Framework Convention on Climate Change (UNFCCC)). It’s being held in Dubai, ten-thousands of people are flying in from all over the...
Black Swans Don’t Live in AI

Black Swans Don’t Live in AI

Worry is within the purview of Team Regulator, and they do it well. This week, Gary Gensler of the SEC voiced his concern to FT that AI will cause substantial financial instability within the next decade. So here is his thinking: Financial institutions, especially...

IFRS 17: Bridging the Gap

Existing accounting practices in the insurance industry are inconsistent and unclear. This has led to the issuance of IFRS 17 Insurance Contracts – the first international Standard for insurance contracts. Because this Standard is based solely on principle and does...

Data Governance in FIs: Root Cause Analysis

This series focuses on Data Governance in Financial Institutions. Our first post introduced the fundamentals of Data Governance. This discussion centers on how to find root causes of problems in organizations and recommend actions to solve them.  When analyzing deep...

Optimal Pacing for Private Assets: An Example

The FRG Private Capital Forecasting (PCF) solution recently released a module for optimal pacing.  Pacing refers to the planning of future commitments. Future commitments encompass a decision on commitment size as well as a decision on commitment timing. This is done...

The 5 Ws and H of IFRS 17 (Part 2)

Previously, we talked about the 5 Ws of IFRS 17. This blog post (Part 2) will discuss the H: How does IFRS 17 replace IFRS 4? A Consistent Model Figure 1: The components that make up IFRS 17 insurance contract liabilities.[1] IFRS 17 introduces the General Measurement...