Careerguide

Managing Inflation Risks: A Practical Guide

Nieuws
02-05-2024
Cristian deRitis
Article by Cristian deRitis, Deputy Chief Economist at Moody's Analytics: Price hikes and price uncertainty can have a huge impact on spending, investment, loan origination and, ultimately, default risk. But what tools can lenders use to assess inflation risk in real time, and how can credit risk models be revised to account for inflation-driven changes in consumer behavior and to protect against financial instability?

Article by Cristian deRitis

Price hikes and price uncertainty can have a huge impact on spending, investment, loan origination and, ultimately, default risk. But what tools can lenders use to assess inflation risk in real time, and how can credit risk models be revised to account for inflation-driven changes in consumer behavior and to protect against financial instability?

Inflation is a critical challenge that demands the attention of risk managers. It is a focal point for central bankers, businesses and households, and the impact inflation can have on businesses and lenders requires a vigilant and proactive approach to safeguard financial stability and foster sustainable growth.

As we witnessed in the aftermath of the pandemic, the relentless climb of prices doesn't merely create uncertainty; it stirs a profound anxiety across the economic landscape, compelling consumers and investors alike to hold back on spending and investment – actions that are vital for economic growth. For credit providers, this isn't a matter of casual observation but a pressing issue that directly affects the performance of their outstanding loans and future origination volumes.

What factors must lenders and their risk managers consider in their efforts to mitigate inflation risk, and what adjustments do they have to make to credit risk models? We’ll talk about all this in a minute, but the first step in this process is figuring out the best inflation assessment tool.

Lees verder >>


Lees verder op: garp.org

Gerelateerde vacatures

Geïnteresseerd in een carrière bij organisaties in ditzelfde vakgebied? Bekijk hieronder de gerelateerde vacatures en vind de perfecte match voor jou!
ING
4.596 - 7.460
Medior
Amsterdam
Als Finance Advice Expert Treasury bij ING analyseer en rapporteer je maandelijkse prestaties aan de CFO Treasury en business. Je leidt prestatiemanagement, bereidt externe disclosures voor, beheert wereldwijde uitgaven en...
's Heeren Loo
3.997 - 6.838
Medior
Amersfoort
Als Management Controller Zorgverkoop & Data bij 's Heeren Loo, speel je een cruciale rol in strategische financiële vraagstukken door zorgverkoop te analyseren, kostprijsmodellen te ontwikkelen en data-gedreven inzichten te...
Radboud UMC
3.589 - 5.669
Medior
Nijmegen
Als Projectcontroller | stafdienst Financiën bij Radboudumc speel je een cruciale rol in het ondersteunen van baanbrekend onderzoek. Je beheert circa 120 projecten, adviseert projectleiders en optimaliseert financieringsmogelijkheden, terwijl je...
Rijksoverheid
5.212 - 7.747
Medior, Senior
Den Haag
Als Coördinator financiële ondersteuning Woningbouw bij het ministerie van Volkshuisvesting werk je aan de financiering van woningbouwprojecten. Je coördineert financiële instrumenten, monitort regelingen en ondersteunt gemeenten in hun woningbouwinitiatieven.