{"id":172117,"date":"2020-05-28T20:08:26","date_gmt":"2020-05-28T20:08:26","guid":{"rendered":"https:\/\/wordpress-693215-2610341.cloudwaysapps.com\/index.php\/2020\/05\/28\/how-does-ccp-skin-in-the-game-affect-risk-management\/"},"modified":"2020-05-28T20:08:26","modified_gmt":"2020-05-28T20:08:26","slug":"how-does-ccp-skin-in-the-game-affect-risk-management","status":"publish","type":"post","link":"https:\/\/theotcspace.com\/how-does-ccp-skin-in-the-game-affect-risk-management\/","title":{"rendered":"How Does CCP Skin In The Game Affect Risk Management?"},"content":{"rendered":"<p>The BIS have conducated a rigorous study using public metrics to look for a relationship between the amount of CCP capital at risk in the default waterfall, and the behaviour of CCP risk models. I won&#39;t spoil the surprise on the outcome, but this appears to be the first quantitative study into the possibility that if a CCP is likely to lose money, they operate more conservative risk models.<\/p>\n<p>The paper covers:<\/p>\n<ul>\n<li>The default waterfall<\/li>\n<li>CCP profitability<\/li>\n<li>The hypotheses to be tested<\/li>\n<li>Public data, featuring ClarusFT<\/li>\n<li>Model risk management<\/li>\n<li>The role of &#39;skin in the game&#39;<\/li>\n<li>The value of a franchise versus risk<\/li>\n<li>The conclusion<\/li>\n<\/ul>\n<p>More information and the PDF plus the outcome<\/p>\n<ul>\n<li>https:\/\/www.bis.org\/publ\/work866.htm<\/li>\n<\/ul>\n<hr \/>\n<p>Photo by&nbsp;<a href=\"https:\/\/unsplash.com\/@mehnditrainingcenter?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" rel=\"nofollow noopener\" target=\"_blank\">Mehndi Training Center<\/a>&nbsp;on&nbsp;<a href=\"https:\/\/unsplash.com\/s\/photos\/tattoo?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" rel=\"nofollow noopener\" target=\"_blank\">Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The BIS have conducated a rigorous study using public metrics to look for a relationship between the amount of CCP capital at risk in the default waterfall, and the behaviour &#8230; <\/p>\n<div><a href=\"https:\/\/theotcspace.com\/how-does-ccp-skin-in-the-game-affect-risk-management\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":1,"featured_media":18989,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2862],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/172117"}],"collection":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/comments?post=172117"}],"version-history":[{"count":0,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/172117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/media?parent=172117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/categories?post=172117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/tags?post=172117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}