All Publications >> Risk Methodology
This paper discusses how Enterprise Risk Management (ERM) can be implemented horizontally across asset-classes and vertically up the chain of risk management functions for each asset, with a particular focus on integrating commercial real estate into an ERM framework.
All Publications >> Risk Methodology
As financial institutions have begun to re-evaluate their CRE risk assessment process, it has become apparent to many that only limited or incomplete CRE deal data exists centrally within the organization. This article investigates the impact that missing data has on the risk assessment of commercial real estate assets. The impact is first shown at the level of an individual deal and then the effect is demonstrated for a portfolio. The paper also suggests algorithms that can be used to quantify the accuracy of portfolio loss estimates and to guide the prioritization of collecting the missing data.
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All Publications >> Risk Methodology
Regulators are rightly concerned about the validity of any models that are being used by banks to estimate risk. One major constraint in commercial real estate is that loans are highly structured, complex, and diverse. Very large differences to the risk can be caused by seemingly small differences in deal structure.
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All Publications >> Risk Methodology
Risk Integrated CEO Chris Marrison proposes banks can manage their liquidity risk for the commercial real estate portfolio using the same tools they have used for assessing their credit risk. The article is due to appear in this month's Commercial Lending Review.
All Publications >> Risk Methodology
A shortened version of this paper will be appearing in the September issue of Banking Systems & Technology. In it Chris Marrison introduces the concept of using cashflow simulation to evaluate risk in construction projects. Two related commercial real estate projects are compared to show how cashflow simulation can give different risk results as compared to nominal and stress cases.
All Publications >> Risk Methodology
Duncan Martin, Head of Wholesale Credit Modeling at the Royal Bank of Scotland and Chris Marrison, CEO of Risk Integrated review the implementation strategies for embedding risk models in a bank's day-to-day business. Their remarks appeared in early November 2008 on the Infrastructure Journal website.
All Publications >> Risk Methodology
To control their reliance on external funding, bank treasurers can get an accurate reading of the liquidity profile of their CRE portfolio by using the same data and framework already in place for assessing their capital requirements.
All Publications >> Risk Methodology
In this month's issue of Mortgage Risk magazine, Risk Integrated CEO, Chris Marrison, examines the four principle forces luring banks back to floating rate lending: forgetfulness, the borrowers' desires, their treasury department and mislaid risk.
All Publications >> Risk Methodology
The May 2008 issue of Project Finance magazine and online news services features an article written by Risk Integrated's Peter Andresén. He discusses what we feel is the best strategy for reducing error in predicting future cashflows in project finance lending and commercial real estate deals.
All Publications >> Risk Methodology
The use of property derivatives are not new in the UK commercial property market, but could experience strong growth in the US in the coming years. Risk Integrated's Peter Andresén explores the nascent property derivatives market and how their use necessitates solid quantitative methods for valuing risk.