Centre for Risk Studies

Cambridge Centre for Risk Studies 6th Risk Summit

Risk Testing: Stressing the Boundaries

22-23 June 2015


Overview

In June 2015 the Cambridge Centre for Risk Studies brought together leaders and decision makers from businesses, governments, academia and NGOs to explore salient topics in risk management. The summit was held at the University of Cambridge Judge Business School, and was followed by a conference dinner at St John's College, Cambridge.

This year's summit, 'Risk Testing: Stressing the Boundaries', took the topical theme of applying stress tests to financial institutions, business management, and other operations. The past few years of requiring banks in all the major jurisdictions of the world to perform different sets of stress tests has proved controversial and has prompted questions about the objectives and techniques of stress testing. The conference addressed current thinking about how to develop better stress tests that make our financial services and our overall society safer, including learning from how stress tests are used in other disciplines and setting 'risk tests' that reflect likelihood and realistic narratives as well as severity benchmarks.

Keynote speakers addressed a number of different viewpoints around stress testing, the issues of understanding systemic risk, and improving the resilience of our society and our economic system. Panels of specialists, including regulators, practitioners, and analysts debated the business benefits of stress testing as a practice.

Speakers included professionals involved in implementing stress tests, regulators who oversee stress tests, academics, commentators, and professionals from a range of different industries.

Download the brochure (pdf, 2.68MB)

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Meeting Programme & Agenda

Day 1: Monday 22 June 2015

09:00-14:30 Cambridge Centre for Risk Studies Research Showcase & Special Topics Seminar
All summit attendees welcome to attend and hear about the latest research activities occurring at the Risk Centre.
15:30-16:00 6th Risk Summit Registration and Coffee/Tea
16:00-16:15 Risk Summit Welcome
Dr Michelle Tuveson, Executive Director, Cambridge Centre for Risk Studies
16:15-17:00 Plenary Session 1: Ring Fencing Systemic Risk

Keynote: How to Escape the Statistical Purgatory of Stress Testing (pdf, 288KB)
Dr Riccardo Rebonato, Author and Global Head of Rates and FX Analytics, PIMCO
17:00-18:00 Risk Summit Day 1 Panel: Views on the Notion of a Stressed Financial System
Moderated by: Andrew Freeman, Risk Fellow, Cambridge Centre for Risk Studies and Director, Finance Foundation
  • Piers Haben, Director, European Banking Authority Oversight
  • Professor Daniel Ralph, Academic Director, Cambridge Centre for Risk Studies, & Professor of Operations Research, University of Cambridge Judge Business School
  • Dr Riccardo Rebonato, Author and Head of Rates and FX Analytics, PIMCO
  • Professor Venkat Venkatasubramanian, Co-Director, Center for the Management of Systemic Risk (CMSR) and Samuel Ruben-Peter G. Viele Professor of Engineering, Columbia University
  • Dr Joyce Vorholt, Partner, McKinsey
18:00-19:00 Drinks Reception at St John's College
19:00-21:30 Risk Summit Dinner at St John's College

Day 2: Tuesday 23 June 2015

09:00-09:30 6th Risk Summit Registration & Coffee
09:30-11:00 Risk Summit Welcome & Introductions

Plenary Session 2: Enhancing the Understanding of Risk
Chair: Dr Andrew Coburn, Director of the External Advisory Board, Cambridge Centre for Risk Studies and Senior Vice President, RMS
09:30-10:00 Historical Perspective of Financial Regulation (pdf, 734KB)
Rasheed Saleuddin, Author & Advisor, West Face Capital
10:00-10:30 When Failure Is Not an Option: Risk & National Security (pdf, 1.6MB)
Brad Pietras, Vice President, Engineering and Technology, Lockheed Martin, UK Lockheed Martin
10:30-11:00 Thinking the Unthinkable in Stress Tests (or Avoiding the Tyranny of the Historical Regression)
Ian Shipley, Partner, Oliver Wyman
11:00-11:30 Coffee Break
11:30-13:00 Plenary Session 3: Business Application and Value
Chair: Simon Ruffle, Director of Technology Research and Innovation, Cambridge Centre for Risk Studies
11:30-12:00 Becoming a Stress-testing Ready Organisation
Dr Aleksander Petrov, Partner, McKinsey
12:00-12:30 Harnessing the Benefits of Stress Testing: A Regulatory Perspective
Dr Alison Scott, Acting Technical HoD Prudential Regulation Authority, Bank of England
12:30-13:00 Panel Discussion: Stress Tests and Evidence for Business Value
Moderated by: Alan Laubsch, Director and VP Risk Products, FNA
  • Dr Alan Cathcart, Head of Stress Testing Strategy and Policy, HSBC Holdings
  • Roger G. Chen, Vice President, Office of Risk Management, New York Life Insurance
  • Mia de Kuijper, Chief Executive Officer, Cambridge Global Partners
  • Dr Sergey Ivliev, Deputy CEO, Prognoz
13:00-14:00 Lunch at Cambridge Judge Business School
14:00-16:00 Plenary Session 4: Confronting Risk Testing Challenges

Cambridge-McKinsey Risk Prize Announcement
Dr Sven Heiligtag, Principal, McKinsey & Company
14:00-14:30 Commodities Perspective of Regulation
Dr Frank Amend, Head of Market Analysis, RWE AG
14:30-15:00 Shareholder Resolutions for Carbon Risks (pdf, 854KB)
Gardiner Hill, Director Carbon Solutions, Group Technology, BP
15:00-16:00 The "Risk" Debate
Debate motion: This house believes that stress testing is a key enabler to the management of future financial crises.
Chair: Keren Uziyel, Editor, Economist & Country Risk Manager, Economist Intelligence Unit

For the Debate Motion:
  • Matthew Grant, General Manager, Model & Data Products, RMS
  • Ed Jenkins, Chief Risk Officer, Global Banking and Markets, HSBC
Against the Debate Motion:
  • Brad Fischtrom, Managing Director, Enterprise Risk Management, AIG
  • Dr Bill Janeway, Senior Advisor, Warburg Pincus
16:00-16:15 Summary & Conclusions
Professor Daniel Ralph, Academic Director, Cambridge Centre for Risk Studies & Professor of Operations Research, University of Cambridge Judge Business School

Note: Programme subject to change

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Videos

Watch video interviews with some of our speakers:

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Photo Gallery

6th Risk Summit - Risk Testing: Stressing the Boundaries

Risk Testing: Stressing the Boundaries

Photos from the 6th Risk Summit, held at Cambridge Judge Business School on 22-23 June 2015, are available via Flickr.

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Meeting Partners

Meeting Partners logos

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Accommodation

To book your accommodation, please contact the hotel directly. Any agreement for accommodation is between you and the hotel. Please check the hotel's terms and conditions of booking, particularly cancellation policy, before booking.

  • Cambridge City Hotel
    £162 per night bed & breakfast (quote code ICJUD for special delegate rate; only a limited number of rooms are available at this rate; the reduced rate is available until 5 June)
  • Regent Hotel
    £117 (standard double) / £108 (small double) per night bed & breakfast
    Tel: +44 (0)1223 351470
  • Hotel du Vin
    Tel: +44 (0)844 736 4253
  • Doubletree by Hilton Hotel
    Tel: +44 (0)1223 259988
  • University Rooms Cambridge
    Accommodation available in selected Cambridge Colleges

Travel & Transport

Directions to Cambridge Judge Business School

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For Further Conference Information

Crystal Mbanefo, Events & Operations Manager
Cambridge Centre for Risk Studies
University of Cambridge Judge Business School
Email: enquiries.risk@jbs.cam.ac.uk
Tel: +44 (0)1223 768386

© Cambridge Judge Business School, Trumpington Street, Cambridge, CB2 1AG, UK
Tel +44 (0)1223 339700