COVID-19 Rocks Risk Management

Risk carries many definitions. Sometimes it is referred to as the chance of losing money while other times it is seen as the chance that the actual outcome will be different from the expected outcome. This summer, the reality was very different from the expected and required many banks’ and financial institutions’ risk departments to redevelop the way they model, analyze, and assess risks within a very short time frame. There were many “[black swan]( the 10-year treasury yield fell below 1%, unemployment abruptly skyrocketed to 13%, and mor