On Tuesday, 23 February 2016, for the fourth time, the Chapter Meeting Frankfurt of the Global Association of Risk Professionals (GARP) of 2016 was held at Frankfurt School of Finance & Management. The Chapter Meeting included the FRM|ERP Recognition Ceremony and brought together risk professionals in the Rhine-Main region.
Markus Quick, GARP Chapter Director and Managing Partner of Dr Peter & Company AG, welcomed the guests and hosted the evening.
Dr Sebastian Fritz-Morgenthal, a risk management specialist, and Professor Dr Natalie Packham, Assistant Professor of Quantitative Finance at Frankfurt School, presented their research results (joint with Julia Hellmuth, who could not attend the meeting) on risk culture.
Their research shows that quantitative and qualitative risk culture indicators can be identified. Using a comprehensive data set comprising 81 European banks, two scores were developed: a score for risk culture based on risk culture indicators, and a stress test score based on the 2014 ECB stress test outcome.
Two hypotheses were tested: first, is there a relationship between the risk culture score and stress indicators (in this case, derived from the 2014 ECB stress test)? Second, which individual risk culture indicators explain the individual results of the ECB stress test best? The talk was followed by a lively discussion, which offered opportunities to dive further into the topic and to network with fellow GARP members.
GARP is the largest global organisation for risk managers in the finance sector. It aims to raise risk awareness in the corporate world. The global standards GARP certifies are Financial Risk Management (FRM) and Energy Risk Management (ERM). Frankfurt School was the first university in Germany to be awarded an Academic Partnership, certifying the coverage of 70 per cent of GARP FRM’s learning goals. “The demand of well-educated risk managers is rising, due to the aftermath of the financial crisis,” explains Professor Dr Natalie Packham, Assistant Professor of Quantitative Finance at Frankfurt School.