Contributor: John Winter

Recent volatility in global markets has prompted insurers to introduce more rigorous risk modelling into their risk management discipline. “Vulnerability to Volatility Risk – a Global Challenge,” a survey conducted by the Economist Intelligence Unit for SunGard, concluded that a majority of bankers, insurers and asset managers, as well as finance executives at non-financial companies, consider their organizations to be vulnerable to exceptional or sudden swings in volatility. More than half of the respondents in this survey say their company conducts stress tests or scenario analysis to check their ability to cope with volatility just once a year or once in six months. That means the majority of these organizations are seriously exposed in today’s fast-moving markets.... read more