New Markets, New Models

By Christopher Thackray, Wouter Lips, and Dawid Pych
26th March 2020

When Henry Ford installed the first moving assembly line in his car assembly plant, he changed history. Other auto manufacturers had to follow suit or get left behind. Today, industries are changing quickly, and regularly, and historical models for forecasting future credit and liquidity do not always take into account the changes.

Industries are being transformed by the transfer of power to the east, the technology revolution, new market entrants, and changes in environmental and social behaviours, forcing companies to make bold and defining bets on the future. Managing these bets in a manner that protects their core business with forward-looking and pre-emptively mitigated effects to current and future credit and liquidity profiles requires new models that account for new market realities.

In New Markets, New Models – Aligning Credit & Liquidity Risk Management to New Market Realities, we discuss:

  • The risks of using historic models to predict future credit and liquidity risks
  • The factors that have created unreliable models
  • The limits of historical models and tools which do not always consider modern risks
  • Forward-thinking strategies to survive new markets and succeed in a changing economy
By Christopher Thackray

Chris is a Managing Director of Periculum with extensive experience advising companies on the development of risk management, from credit and liquidity risk, to strategic, operational and reputational risk. Chris is a trusted advisor to Boards and C-suite executives across a variety of industries and is a keen author of risk management publications.

and Wouter Lips

Wouter Lips is the Credit and Liquidity Risk Manager at Periculum, based in London, United Kingdom. He enjoys reading, traveling, retail investing, watching football and experiencing new cuisines.

and Dawid Pych

Dawid Pych is a Risk Analyst at Periculum and a master’s degree student at Imperial College London. He is a massive sports enthusiast who competed in squash on a European level in the junior category. He still enjoys challenging his friends on the court when he’s not busy with developing his coding skills or reading through financial magazines.