by Glyn Holton | Jan 3, 2023
The risk manager slumped behind his desk. It had been a long day, troubleshooting the latest emergency. He was tired. We both were. He was coming to terms—everyone was—with the fact that there would be no bonuses this year. Bonuses were tied to the firm achieving its... 
by Glyn Holton | Nov 5, 2019
A lot of people who receive your risk report never read it. Here is a simple fix: Add narrative, qualitative information. Years ago, a client asked me to attend his firm’s corporate board meeting. I got a front row seat for how one closely-held... 
by Glyn Holton | Oct 11, 2018
The power of value-at-risk lies in ints generality. Unlike market risk metrics such as the Greeks, duration or beta, which are applicable to only certain asset categories or certain sources of market risk, value-at-risk is general. It is based on the probability... 
by Glyn Holton | May 9, 2017
Last week, some hedge fund manager made fleeting headlines when he announced he was bullish because “Animal spirits matter.” Are you paying attention? I hope not. As a risk manager, don’t be co-opted by finance’s latest loaded phrase:... 
by Glyn Holton | Jul 9, 2016
Suppose you arrive at your dentist’s office for an appointment. Before escorting you to an examination room, the receptionist asks what your pain appetite is. That afternoon, you head over to the Apple store to buy the latest iPhone. A sales clerk at the front... 
by Glyn Holton | Jun 6, 2016
You finally did it! You landed that senior risk management position at a fabulous firm. The job search took a while, and the vetting was intense. But you made the cut. They chose you! A bigger challenge is yet to come. Starting a new job is exciting. It can also be a... 
by Glyn Holton | Jan 28, 2015
On Friday, I wrote a lighthearted piece challenging criticisms of value-at-risk. The Swiss had abandoned their currency peg; people had lost money; and VaR was being blamed—again. My message was essentially this If your VaR measure wasn’t flashing red alerts... 
by Glyn Holton | Jan 24, 2015
Last week, the Swiss pulled their peg, and swissie soared. Part of the fallout—surprise, surprise!—is criticisms of value-at-risk. This time The Economist is leading the charge, writing: … Another likely casualty is the ‘value-at-risk’ models banks... 
by Glyn Holton | Nov 20, 2014
I have written about it before, and I am sure I will write about it again. … how financial risks that devastate firms aren’t random occurrences, as if the gods on Olympus toss dice to determine a company’s fate. No. There are causes. And these are usually... 
by Glyn Holton | Aug 28, 2014
There are few life decisions as consequential as your choice of career. Get it wrong, and you’re in for a world of discontent. Perhaps you currently have a risk management position and are wondering if you can make it a career. Or maybe you are just starting out...