Counter
Rationale For Wrap

The Conundrum

Historically

  • Financial Intermediaries and Rating Agencies had secretive and
    proprietary ‘black boxes’ for pricing and measuring the value, volatility
    and VAR of complex financial instruments
  • Institutions with the greatest exposures were some of the most opaque
  • The greater the market volume of a security or a sector, the greater was
    its perceived liquidity

Today

  • Massive net exposures across a range of non-governmental Fixed
    Income Securities
  • Trust in both financial institutions and ratings is gone,  possibly for a
    generation
  • The more opaque the calculations, the less the trust,
  • The more complex the instrument, the less its liquidity
  • Stakeholders, including banks, insurers, investors, regulators, and
    governments, demand greater transparency, the question is, how?
Collaborative Risk Transparency
Collaborative Risk Transparency
Open Models Company
Wiki  Risk  Assessment  Process 2.0