GARP Risk Podcast

Hear from Michael Crumpler, CEO, Credit Benchmark and Jon Hilsenrath, former Wall St. Journal senior writer and founder of Serpa Pinto Advisory, as we examine early warning signs, strategic responses, and innovative risk management approaches needed in today's volatile trade environment. This podcast explores the intersection of trade policy and credit risk, offering insights for senior risk managers navigating an increasingly complex global landscape: Rising Credit Risk: How tariffs are reshaping the credit risk landscape across key global sectors and what early warning signs risk officers should be tracking. Capital Allocation Strategies: How CROs and portfolio managers should reframe risk appetites given significant credit deterioration in vulnerable sectors. Data-Driven Decision Making: The role of alternative data and credit consensus insights in scenario planning and stress testing for portfolios exposed to supply chain shocks and regulatory retaliation. Central Bank Response: Potential actions the Fed and ECB may take given impacts of tariffs on inflation, Treasury yields, and economic uncertainty. Links from today’s discussion: Global Credit Risk Rising as Trade War Starts   Speaker Bios Michael Crumpler, CEO, Credit Benchmark Michael was appointed CEO of Credit Benchmark in June 2023 after serving in several key executive roles including most recently as Chief Operating Officer and Head of Risk. He is also a member of the Executive Committee. Prior to joining Credit Benchmark in 2016, Michael worked at Goldman Sachs in the Credit Risk Management & Advisory group covering a diverse portfolio of entities across the natural resources and public finance sectors. Before Goldman, Michael spent over 10 years in other credit risk and banking roles at Barclays, Dexia and Moody’s Investors Service focused primarily on energy, infrastructure and U.S. public finance. Michael holds a Master of International Affairs from Columbia University’s School of International and Public Affairs and a Bachelor of English Literature from the University of North Carolina at Chapel Hill.   Jon Hilsenrath, Former Wall St. Journal Senior Writer and Editor Author and 26-year veteran of The Wall Street Journal. Former chief economics correspondent, economics editor, markets editor and senior writer, based in New York, Hong Kong & Washington D.C. Pulitzer Prize finalist in 2014 for coverage of the Federal Reserve; part of WSJ team that was Pulitzer finalist in 2009 for coverage of financial crisis; contributed on-the-scene reporting to the WSJ’s Sept. 11 coverage which won 2002 Pulitzer. Author of “Yellen,” a biography of the Treasury Secretary and former Federal Reserve Chairwoman, book described by The Economist magazine as "elegant and erudite." Wilson Center Fellow, 2021. Cum laude graduate of Duke University, Knight-Bagehot Fellow at Columbia University with MBA and M.A. Hong Kong University of Science and Technology alum. Partner of Duke economics department as Visiting Fellow.   Moderator Katherine Wolicki, Global Head of Engagement and Outreach, GARP Benchmarking Initiative (GBI) Katherine is the Global Head of Engagement and Outreach for GARP Benchmarking Initiative (GBI).  GBI plays a key role in supporting evidence-based policymaking through the provision of industry benchmarking studies.  Prior to this she was with HSBC for 12 years where she led the Global Financial and Model Risk Regulatory Policy and Engagement team for Risk. The team was responsible for the external regulatory interface for the Traded Risk, Treasury Risk Management and Global Risk Analytics function.  This included the provision of guidance on regulatory risk matters, regulatory policy interpretation and industry engagement.   Prior to this she was based in Brussels as a Public Affairs consultant specialising in financial services regulation.  Katie has an MA in International Economic Relations from American University and a Maîtrise in European and International Law from the University of La Reunion. She is a fluent French speaker and an avid hiker and mountaineer.     About Credit Benchmark Credit Benchmark is a leading provider of credit risk data and analytics. The company aggregates and anonymizes contributed risk data from over 40 global financial institutions, producing unique obligor-level Credit Consensus Ratings and other key credit metrics. Covering over 110,000 legal entities, 90% of which are not publicly rated—Credit Benchmark’s insights are trusted by major financial institutions worldwide to enhance their internal credit risk analysis and gain accurate risk perspectives.

Hear from Zeynep Tunc at SAS, who is leading risk management activities across Northern Europe, to learn about AgenticAI, a groundbreaking approach to decision making that interacts dynamically with its environment to achieve specific goals. Key topics: How AgenticAI differs from traditional AI through dynamic environmental interaction The technology behind the revolution: reinforcement learning, decision theory, and cognitive modeling Real-world applications in autonomous vehicles, loan approvals, portfolio management, and collections Critical ethical considerations including transparency, accountability, and bias mitigation Featuring insights from cutting edge research, including a Cambridge University project on self-driving cars, this episode maps the future landscape of AI-driven decision making. Relevant links: Rethinking risk: Smarter models, better decisions Discover your organisation’s Gen AI preparedness vs others - try the SAS GenAI benchmark tool    Speaker’s Bio Zeynep Tunc is a credit risk professional with experience managing originations, customer management, and collections teams for consumer and small business portfolios. She joined SAS in 2022 and is currently leading risk management activities across Northern Europe. Zeynep is passionate about driving automation, seamless customer experiences, convergence of credit and fraud evaluations across customer lifecycle, AI-driven customer engagements, and working with clients to support near and long-term strategic roadmaps to drive value. Before joining SAS, Zeynep held key roles at financial institutions including Citibank, HSBC, Toyota Finance, and UniCredit, as well as software vendors such as FICO. Over the years, GARP and SAS have partnered to bring risk practitioners unique insights on a variety of topics related to risk management. Now we present a series of podcasts focused on making financial risk-based decisions in light of the rapid evolution of artificial intelligence and machine learning. About SAS SAS is a global leader in data and AI. We help organizations transform data into trusted decisions faster by providing knowledge in the moments that matter. No matter how you prioritize risk, SAS has proven solutions and best practices to help organizations establish a risk-aware culture, optimize capital and liquidity, and meet regulatory demands. SAS® provides on-demand, high-performance risk analytics to ensure greater efficiency and transparency. Strike the right balance between short- and long-term strategies. And confidently address changing regulations and manage compliance. Discover why 90% of the Fortune 100 use SAS. sas.com/riskmanagement.

Hear from Peter Mortensen, the chief risk officer of Russell Investments, about inflation volatility, tariffs, liquidity risk, AI threats and benefits, and ERM. Across the financial services spectrum, amid a global environment of uncertainty and political upheaval, risk management is as daunting as ever in 2025. Banks, for example, must contend with everything from cybersecurity hazards and the rise of AI to regulatory risk, global debt problems and increased supply-chain risk. Investment managers, meanwhile, face many of the same challenges but are also concerned with portfolio management, inflation volatility, the introduction of new tariffs, stress testing and liquidity risk obstacles.  Peter Mortensen, CRO of Russell Investments, joins us today to share his insights on the risk trends, challenges and opportunities impacting the global investment management community. Relevant Links: GARP Benchmarking Initiative   Speaker’s Bio Peter Mortensen is chief risk officer at Russell Investments, where he is responsible for measuring and monitoring market and liquidity risks for the firm's risk management program and regulatory reporting. He was promoted to CRO in June 2023, after serving a stint as the firm’s managing director of investment risk. In his current role, Peter also oversees the development, daily operation and support of Russell Investments’ proprietary multi-asset enterprise risk management system, which facilitates quantification of market, liquidity, credit and concentration risks. Since July 2015, he has assisted the CFA Institute with their curriculum development on risk management. Prior to joining Russell Investments in 2012, Peter worked as a senior risk analyst in the product solution group at Nykredit Bank. In that role, he was responsible for the development and implementation of OTC pricing models, in addition to models for pricing expected liquidity and capital costs arising from OTC trades.

Hear from Moody’s Analytics’ Cris deRitis about cybersecurity, AI, deglobalization, regulatory risk, global debt problems, geopolitical volatility, supply-chain risk, and other key issues that will impact risk managers this year. In 2024, the complex obstacles facing financial institutions and their risk managers were illuminated by headline-grabbing risk events – including the CrowdStrike IT outage, the fall of Republic First Bank, terrorist attacks on commercial shipping vessels in the Red Sea, and a plethora of climate-change-abetted natural disasters. Indeed, multi-faceted risks - ranging from rising cyber threats, third-party risks and AI encroachment to evolving regulatory and climate risks to geopolitical volatility and supply-chain uncertainty – created a very challenging environment. Part of the problem is that many of the major risk types are interconnected and distributed across multiple transmission channels. For example, cybersecurity not only covers ransomware attacks and internal breaches but also requires monitoring of threats from both third-party vendors (like CrowdStrike) and from AI tools, like deepfake technology, used by cyber criminals. Likewise, geopolitical risks, such as the Russia/Ukraine and Israel/Hamas wars, have a major impact on the supply chain.  This year, risk managers can expect to face many of the same issues, while also tackling global debt problems, deglobalization, political upheaval, and even greater AI, cyber and third-party hazards. Relevant Links: Modeling Risk (GARP column by Cris deRitis) GARP Benchmarking Initiative GBI Study on Operational Resilience: Key Findings   Speaker’s Bio Cristian deRitis is Managing Director and Deputy Chief Economist at Moody's Analytics. As the head of econometric model research and development, he specializes in the analysis of current and future economic conditions, scenario design, consumer credit markets and housing. In addition to his published research, Cristian is a co-host on the popular Inside Economics Podcast. He can be reached at cristian.deritis@moodys.com.

Join Martim Rocha, Global Head of Risk Banking Solutions at SAS, and Luis Jesus, Senior Manager at SAS, as they discuss how financial institutions can transform their risk management to thrive in today's volatile market. Financial organizations today face heightened regulatory scrutiny while contending with siloed, legacy risk systems. But those that embrace AI, cloud, and integration can unlock new levels of efficiency, scalability, and proactive insights. Hear expert strategies for building a future-ready risk ecosystem - one that delivers governance, control, and competitive advantage.  Key topics: - Top challenges risk teams face in cost rationalization and automation - How modernizing risk technology impacts business processes and decision-making. - Balancing business continuity, modernization, and regulatory demands - Addressing banking industry challenges and trends related to risk modernization over the next 5 years   Speakers’ Bios Martim Rocha, Global Head of Risk Banking Solutions at SAS Martim manages a team of global experts on banking risk management, defining roadmaps and priorities for SAS solutions and supporting customers all over the world on their journey to take the best of the SAS solutions, from scoping and defining the best approach for each business case to helping customers taking the SAS solutions through implementation to be live as a production system. Martim has published several papers and has spoken at several conferences around the world on the topics of Risk Management in Banking, Risk and Finance Integration, IFRS9/CECL, Regulatory Risk Management, ALM, Capital Planning , Scenario Based Analysis and Stress-testing. With SAS for more then 17 years, he played the role of Strategic Advisor and Solution Designer on projects such as Stress-testing on a G-Sib based in London; IFRS9 and Stress-testing at G-SIB bank covering more than 60 locations worldwide; IFRS9 impairment at a couple of Top 5 Nordic Bank covering 5 countries; IFRS9 full-scope at Top banks in UAE; and IFRS9 impairment at more than a Top 5 South African Bank. Martim has more than 25 years of experience in the financial services industry on the topics of risk management, business analytics and data management. He has designed and managed projects for banks, insurance firms and other financial services companies in areas such as financial management, risk management, predictive analytics, financial and sales performance, strategy management, and customer analysis and segmentation. In addition, he was a lecturer for courses on advanced decision support systems, data warehousing and data mining at the Autonomous University of Lisbon and at the ISCTE Business School. Before joining SAS, Martim was a partner on the Business Analytics focused consulting firm, Noscitare where he led the delivery of many IT projects in financial services companies. Martim has a post-graduate degree in Business Administration from Nova SBE and has an undergraduate degree in Computer Science from ISIG.   Luis Jesus, Senior Manager at Risk, Fraud and Compliance Solutions , SAS Luis Jesus is a risk management professional with 20+ years of experience in the financial services sector. He is currently a Senior Manager in the Integrated Balance-sheet Management solutions. Luís has a professional experience of more than 20 years in the financial sector being involved in different risk management projects namely on the implementation of the Basel Accord requirements, development of PD, LGD and CCF models, operational risk frameworks, recovery and resolution plans, ICAAP and ILAAP frameworks, development of IFRS9 compliant impairment calculation information systems and risk governance. Before joining SAS he was the Chief Risk Officer in a Portuguese bank and before that he was an Associated Partner in KPMG. Links from today’s discussion: https://www.sas.com/en/whitepapers/how-to-win-by-liberating-alm-113740.html   Over the years, GARP and SAS have partnered to bring risk practitioners unique insights on a variety of topics related to risk management. Now we present a series of podcasts focused on making financial risk-based decisions in light of the rapid evolution of artificial intelligence and machine learning.   About SAS SAS is a global leader in data and AI. We help organizations transform data into trusted decisions faster by providing knowledge in the moments that matter. No matter how you prioritize risk, SAS has proven solutions and best practices to help organizations establish a risk-aware culture, optimize capital and liquidity, and meet regulatory demands. SAS® provides on-demand, high-performance risk analytics to ensure greater efficiency and transparency. Strike the right balance between short- and long-term strategies. And confidently address changing regulations and manage compliance. Discover why 90% of the Fortune 100 use SAS. sas.com/riskmanagement.

Hear from Pedro Morales, the Director and Global Head of AML/Sanctions Compliance at Google, about AI, cyber threats, fraud, third-party risk, regulation and other complex operational resilience obstacles, trends and risks. The Federal Reserve defines operational resilience as the ability to deliver operations, including critical operations and core business lines, through a disruption from any hazard. In an interconnected world rife with volatility and uncertainty, there are certainly a plethora of hazards that can disrupt a business, and managing operational resilience is therefore a daunting task. At financial institutions, the operational resilience umbrella covers everything from AI, geopolitical threats and cyber risk to fraud, money laundering, IT outrages, third-party risk and disaster recovery. Indeed, on any given day, an operational resilience leader could have to contend with, for example, a cyberattack, an AI threat, a money-laundering scheme, or the fallout from a natural disaster or from wars in Eastern Europe and the Middle East. Governance and regulatory obstacles, moreover, also come with the job. With so many different problems to contend with, there’s not necessarily a one-size-fits-all approach for operational resilience. But a manager must stay on top of trends and be aware of all potential risks, while also following best practices – all as part of an effort to withstand, adapt and recover from disruptive events. *The views expressed by our guest speaker, Pedro Morales, are his alone and do not necessarily reflect those of his employer. Relevant Links: GARP Benchmarking Initiative Risk Intelligence: Operational Risk   Speaker’s Bio Pedro Morales is the Director and Global Head of AML/Sanctions Compliance for Google. He previously served as Google’s Global Head of Enterprise Risk Management for Payments, and has also worked in various leadership roles at the Federal Reserve Bank of New York, where he supervised large banks.

Join industry experts Theodora Lau, founder of Unconventional Ventures and co-author of The Metaverse Economy and Beyond Good, and Julie Muckleroy, Global Banking Strategist at SAS as they explore the critical crossroads of AI in banking for 2025. This podcast delves into how banks are shifting from AI hype to strategic implementation, focusing on building foundational elements like data governance and trust. The conversation examines how mature approaches to AI can align investment with board priorities, select strategic use cases, and ultimately deliver meaningful return on investment while navigating complex regulatory landscapes. Key Insights: - How banks can align AI strategies with business priorities - Potential benefits and risks of AI technology - Innovative applications supporting small businesses, fraud prevention, and customer experience - Social good opportunities in AI development Dive into the future of banking technology with this must-listen podcast episode. Relevant Links: 2025 Trends in Global Banking | SAS   Speakers’ Bio Theodora Lau, Founder, Unconventional Ventures Theodora Lau is the founder of Unconventional Ventures, a public speaker, and an advisor. She is the co-author of The Metaverse Economy (2023) and Beyond Good (2021), and host of One Vision, a podcast on fintech and innovation. Her monthly column on FinTech Futures explores the intersection of financial services, tech, and humanity. She is named one of American Banker’s Most Influential Women in FinTech in 2023. She is also a regular contributor and commentator for top industry events and publications, including BBC News, Finovate, American Banker, and Journal of Digital Banking. Julie Muckleroy, Global Banking Strategist, SAS With a background in marketing leadership roles at SaaS organizations and large US banks like Bank of America and Wells Fargo, Julie brings extensive knowledge and expertise in global banking trends and marketing strategies. She evaluates the future state of banking as a strategist at SAS.   Over the years, GARP and SAS have partnered to bring risk practitioners unique insights on a variety of topics related to risk management. Now we present a series of podcasts focused on making financial risk-based decisions in light of the rapid evolution of artificial intelligence and machine learning. About SAS SAS is a global leader in data and AI. We help organizations transform data into trusted decisions faster by providing knowledge in the moments that matter. No matter how you prioritize risk, SAS has proven solutions and best practices to help organizations establish a risk-aware culture, optimize capital and liquidity, and meet regulatory demands. SAS® provides on-demand, high-performance risk analytics to ensure greater efficiency and transparency. Strike the right balance between short- and long-term strategies.

Hear from Bo Xu, a Principal at Boston Consulting Group (BCG) and a member of GARP’s Risk and AI Advisory Committee, about GenAI use cases and challenges, as well as its impact on modeling, governance, regulation and risk careers. Even though generative AI is in its early days, its already having a big effect in financial risk management. As a powerful, interactive technology that can understand natural language, quickly search through reams of data and provide human-style answer to questions, GenAI is being used today for everything from data processing to risk monitoring and measurement to quantitative risk modeling. At the same time, financial institutions must decide how to properly govern GenAI, particularly as critics have expressed concerns about data leakage, intellectual property protection and third-party risk. What’s more, there are questions about the impact GenAI could have on risk jobs and about how regulators are going to respond to this innovative technology. Relevant Links: GARP Benchmarking Initiative Risk Intelligence: Technology Section   Speaker’s Bio Bo Xu serves as a Principal at Boston Consulting Group (BCG), where he is a core member of the global GenAI expert team. His professional journey at BCG began in 2019, following a four-year tenure at KPMG in the risk consulting practice, concentrating on CCAR/DFAST model development and validation work. In his role at BCG, Xu leads a multi-disciplinary team focused on AI and GenAI programs. His responsibilities encompass strategy development, AI/GenAI implementation, and change management. He also has expertise in credit risk analysis, model risk management, and data governance from his earlier career.

Hear from Terisa Roberts, Global Head of Risk Modeling and Decisioning at SAS and Sarah Murphy, Principal Director of Accenture Data and AI, as we explore real-time customer decision making and what it means for portfolio monitoring. Thanks to the internet and artificial intelligence, consumers today can make financial decisions through multiple channels, resulting in a new level of competitive pressure for the sector. Financial services firms must make decisions that are not only fast and reliable, but also automated. Real-time customer decisioning plays a pivotal role in achieving these goals throughout the credit value chain, from the point of onboarding (including KYC, credit risk and fraud assessments and marketing) and beyond. Today’s episode will focus on: What are the global trends driving change in customer decisioning in financial services? What problems/challenges are there with conventional approaches? What are the benefits of modernizing your credit decisioning infrastructure? How are forward-thinking organizations deriving concrete business value from their decisioning modernization projects? Links from today’s discussion: SAS and Accenture Risk Model Decisioning Risk-Based Decisioning in an Age of Uncertainty Part 1 Risk-Based Decisioning in an Age of Uncertainty Part 2 Speakers Bios: Terisa Roberts Global Head of Risk Modeling and Decisioning, SAS Terisa Roberts is a risk management professional with 20 years of experience primarily in the financial services sector. She is currently a Director and Global Lead for Risk Modeling and Decisioning at SAS. Terisa has an extensive background in risk modeling for retail and commercial portfolios including regulatory capital stress testing and IFRS9/CECL. She advises banks, other financial services providers and regulators concerning innovations in Risk Modeling and Decisioning including artificial intelligence and machine learning. Teresa holds a Ph.D. in Operations Research and Informatics and lives in Sydney Australia   Sarah Murphy, Principal Director, Accenture Data and AI As a Principal Director at Accenture, Sarah leads the growth of Intelligent Decisioning within the Applied Intelligence practice, leveraging 25+ years of risk management and operational experience in financial services and global consulting. ​  Sarah has a proven track record of solving complex risk issues across the credit customer lifecycle, applying predictive analytics and decision management to transform business culture, minimize exposure, increase profitability, and create risk management centers of excellence. She also has a strong executive presence and excellent communication skills, enabling her to partner with clients and stakeholders at all levels and deliver value-added solutions. ​ Passionate about staying at the forefront of the latest trends and technologies in intelligent decisioning, her mission is to help organizations harness the power of data and analytics to optimize their decision making, enhance their customer experience, and achieve their strategic goals.    Over the years, GARP and SAS have partnered to bring risk practitioners unique insights on a variety of topics related to risk management. Now we present a series of podcasts focused on making financial risk-based decisions in light of the rapid evolution of artificial intelligence and machine learning.   About SAS SAS is a global leader in data and AI. We help organizations transform data into trusted decisions faster by providing knowledge in the moments that matter. No matter how you prioritize risk, SAS has proven solutions and best practices to help organizations establish a risk-aware culture, optimize capital and liquidity, and meet regulatory demands. SAS® provides on-demand, high-performance risk analytics to ensure greater efficiency and transparency. Strike the right balance between short- and long-term strategies. And confidently address changing regulations and manage compliance.  Discover why 90% of Fortune 100 companies choose SAS to solve their toughest challenges at sas.com/riskmanagement.

Hear from Cristian deRitis, deputy chief economist at Moody’s analytics, about the evolution of stress testing, current trends, and the biggest challenges facing banks and regulators. Regulatory stress tests play a vital role in ensuring that large banks hold enough capital to withstand extreme recessions, while internal stress tests at banks are used for everything from capital and liquidity planning to risk monitoring, risk identification and operational resilience. The 2023 failures of a group of mid-sized U.S. banks, however, have led some critics to question whether the Federal Reserve’s annual stress test is broad enough, comprehensive enough and sufficiently proactive – particularly with respect to emerging threats and rare tail risks. Globally, meanwhile, we’ve seen stress testing expand beyond capital and liquidity and into areas like climate risk, which has created a whole new set of hurdles for regulators and banks. In the future, to address perceived flaws, it’s feasible that we could see a broadening of regulatory stress tests and changes to central banks’ approaches to scenarios. Banks, meanwhile, may consider increasing the frequency of their internal tests and expanding their use of AI models to rapidly factor in a wider array of scenarios. Relevant Links: GARP Benchmarking Initiative Modeling Risk (Risk Intelligence column by Cristian deRitis)   Speaker’s Bio Cristian deRitis is Managing Director and Deputy Chief Economist at Moody's Analytics. As the head of econometric model research and development, he specializes in the analysis of current and future economic conditions, scenario design, consumer credit markets and housing. In addition to his published research, Cristian is a co-host on the popular Inside Economics Podcast. He can be reached at cristian.deritis@moodys.com.