Author: Lutfey Siddiqi

Lutfey Siddiqi is Visiting Professor-in-Practice at the Centre for International Studies at the London School of Economics (LSE). He is also an Adjunct Professor at the National University of Singapore, having been a founding member of the faculty at its Risk Management Institute. Until May 2016, he was a Managing Director and member of the executive committee of FX, Rates & Credit (FRC) at UBS Investment bank with global responsibility for emerging markets. Lutfey is a member of the Global Agenda Council (Financing & Capital) at the World Economic Forum, LSE Court of Governors & LSE Investment committee, Bretton Woods Committee, Advisory board of the Systemic Risk Centre and Academy for the $1 Million Global Teacher Prize. He was honored as a Young Global Leader by the World Economic Forum in 2012.

It feels as though cyber risk has crept up on us without warning and with great intensity. We have come a long way from the days when our Palm Pilots had to be hot-synced through a docking station and the occasional hazard was from viruses transmitted as email attachments. Over the years, we have embraced extreme connectivity combined with extreme automation in a never-ending drive towards convenience and cost-efficiency. However, even as banks continue to nudge, cajole (and perhaps occasionally threaten) their customers towards impersonal e-channels, we learn about record amounts of losses from online fraud and theft. Furthermore, all…

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It was just a year ago that Argentina issued a 100-year bond which offered a dollar coupon of less than eight percent for which, there was three times as much demand as supply. Shortly afterwards, major investment banks issued their outlook for 2018. One of them was titled “Synchronised Skating.” Another one said, “As Good As It Gets.” In January this year, in the week that Donald Trump announced tariffs on South Korean washing machines, the IMF released its economic outlook which did mention challenges ahead but presented a mostly optimistic baseline. Today, US stocks are at record levels but virtually every other market…

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The context of risk management and risk preparedness has changed in recent years. Here are four major trends shaping the field: Structural Disruption We are living through a period of multi-dimensional disruption that is often dubbed as the fourth industrial revolution. Developments in extreme connectivity and extreme automation have consequences beyond the world of technology: business models, industries, markets, regulatory, and governance regimes have been thrown into a flux. New dimensions such as cyber-risk have entered the fray. It is increasingly difficult to differentiate between structural change and cyclical change. What used to be considered as structural and institutional constants…

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