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Financial risks

NARROWER TERMS


Discussion paper

Macrofinancial stress testing on Australian banks

This paper outlines how the Reserve Bank of Australia’s bank stress testing model works. It also shows how the model was useful in a real-world crisis, at the onset of the COVID-19 pandemic.
Strategy

ASIC corporate plan 2022-26: focus 2022-23

This corporate plan highlights the work ASIC will be undertaking over the next four years, with an emphasis on regulating product design and distribution, sustainable finance, retirement decision making and technology risks.
Report

Retail investor research

This report presents the findings of research into Australian retail investors’ motivations, attitudes and behaviours. The results provide a point-in-time snapshot of the period following the onset of the COVID-19 pandemic.
Report

Modelling it all: secondary perils in a warming world

This report seeks to understand how the insurance industry can refine the way it defines, measures and underwrites secondary perils amidst an evolving climate risk landscape. The report also outlines key issues the insurance sector faces regarding secondary perils and the surrounding discourse, and identifies...
Report

World development report 2022: finance for an equitable recovery

This report focuses on the interrelated economic risks that households, businesses, financial institutions and governments worldwide are facing as a consequence of the COVID-19 crisis. The report offers new insights from research on the interconnectedness of balance sheets and the potential spillover effects across sectors.
Case study

Nature-related financial risk: use case

This document demonstrates how the vulnerability of degraded soil and extreme weather can deliver a blow to asset value.
Guide

Auditing risk culture: a practical guide

Specifically developed in the context of Australian financial services organisations for internal auditors, senior management, board audit committees and other assurance providers, this 40-page guide will be useful more broadly: in non-financial organisations and both within and outside Australia.
Discussion paper

Financial conditions and downside risk to economic activity in Australia

The key finding in this paper is that financial conditions provide useful information about downside risks to GDP and employment growth, and upside risks to the unemployment rate. That is, when financial conditions are extremely restrictive, the risks of very bad outcomes for these variables...
Discussion paper

The role of collateral in borrowing

This paper studies the role of collateral in credit markets under stress.
Report

The Australian Taxation Office’s management of risks related to the rapid implementation of COVID-19 economic response measures

The objective of this audit was to assess whether the Australian Taxation Office (ATO) has effectively managed risks related to the rapid implementation of COVID-19 economic response measures.
Report

Services Australia COVID-19 measures and enterprise risk management

The objective of this audit was to assess whether Services Australia had effectively managed risks related to the rapid preparation for and delivery of COVID-19 economic response measures.
Report

The rise of megaprojects: counting the costs

Australian governments are fast-tracking their transport projects, hoping for an infrastructure-led recovery from the pandemic-induced recession. This report argues that governments need to rethink major projects that have been promised or are under construction, particularly those announced without a business case.
Report

Financial knowledge of New Zealanders

Recognising the importance of measuring financial knowledge as a building block of financial capability, this report analyses New Zealand’s results by age, gender, ethnicity, education, employment status and personal income to identify areas of need and opportunity when targeting delivery of financial education.
Working paper

Increased risk taking, not loss tolerance, drives adolescents’ propensity to gamble more under peer observation

In the presence of peers, adolescents’ relative weighting of losses to gains (loss aversion) increases. This is good news for policy, suggesting that appealing to loss aversion should be especially effective at reducing harmful adolescent behaviours committed in the presence of peers.
Working paper

How people react to pension risk

This paper shows that people exposed to greater pension risk are less likely to invest in risky assets. The authors exploit a reform that links people’s future pension benefits to their pension funds’ funding ratio—a measure of the fund’s financial health—making funding ratios a fund-specific...
Conference proceedings

CPD business roundtable on climate and sustainability: summary of conclusions

The discussion outlined in this roundtable summary document highlights that the bar on climate risks continues to rise for Australian company directors, investors and regulators. It also suggests there is strong support for accelerated action on climate change and a new national mission to address...
Policy report

Delivering an investable long-term emissions strategy

The Australian and New Zealand Governments have committed to release long-term emissions strategies in 2020 under the Paris Agreement. This paper provides an overview of the role and implications of long-term emissions strategies for institutional investors, such as super and pension funds, in Australia and...
Policy report

Climate risk and fiduciary duties

Investors have a clear legal obligation to manage climate risks. In addition, financial regulators around the world are now requiring a proactive response from investors and companies to manage climate related financial risks in order to ensure financial stability.
Blog post

A risky proposition? Australian aid loans and the Pacific

Just because other donors have struggled to lend successfully in the Pacific does not mean Australia is destined to fail. But the track record of loans in the region provides cause for caution.
Article

Australian universities can’t rely on India if funds from Chinese students start to fall

From a business perspective, investing so much in one portfolio is risky, and universities need to diversify where they’re getting their income to ensure a stable economic future.