Towards better financial risk learning
Abstract
As recent events have shown, finance professionals need to be as comfortable with risk concepts like liquidity and capital as they currently are with business concepts like compound interest and variable annuities. The firm that succeeds in integrating risk awareness into its business activities has a decided advantage over its competition. Attaining this degree of risk knowledge requires innovative learning approaches drawn from technical communication, presentation, knowledge management and training, as this paper explores. Although external risk training is available within the finance industry, this paper proposes that the interpretation and application of risk concepts are unique to the organisation and will necessarily require customised in-house training. Such a complex effort demands executive sponsorship, and partners within risk management and multiple business units. This paper highlights two financial risk concepts — economic capital and potential future exposure — and proposes practical learning recommendations for each.
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Author's Biography
Anna Waldvogel is a training consultant specialising in custom and proprietary learning problems related to software use and business process. She applies best practices in learning, design and information management theory on behalf of organisations and learners. Anna offers a unique combination of technical and learning acumen with business experience managing the training function and working in both training and consulting roles. In two decades in IT, she has served clients in financial services, cable and telecom, military and internet commerce. She has led hundreds of successful training implementations in the classroom, through the internet and using on-demand rapid e-learning.
Niall Whelan joined Scotiabank in 2000 and has had various roles since then. He is currently Director of Research and Model Risk with responsibilities for counterparty credit risk measures and the vetting of pricing and risk models. Prior to 2000 he was a theoretical physicist with appointments in Copenhagen, Paris and Hamilton, Ontario. He speaks on the topic of quantitative risk management at conferences and other forums and has authored several quantitative finance research papers.
Citation
Waldvogel, Anna and Whelan, Niall (2008, September 1). Towards better financial risk learning. In the Journal of Risk Management in Financial Institutions, Volume 1, Issue 4. https://doi.org/10.69554/ZVAN1869.
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