Risk Management

The CFP’s risk management efforts are led by Clifford Rossi, executive-in-residence and professor of the practice at the Robert H. Smith School of Business, University of Maryland. Prior to entering academia, Rossi had nearly 25 years’ experience in banking and government, having held senior executive roles in risk management at several of the largest financial services companies.

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Upcoming Events

Risk Leadership Series

Fifth Annual Mortgage Risk Summit
Postponed until 2021. Check back for additional information.

Advanced Risk Management Training for Mortgage Professionals
October 19-November 6, 2020

Managing Risk During the COVID-19 Pandemic

How Responses to Crisis Create Risk Chain Reactions: The Case of COVID-19
Clifford Rossi, Professor of the Practice & Executive-in-Residence

March 30, 2020

WATCH 

Supply Chain Crisis: How Best In Class Organizations Battle Pandemic Risks
Sandor Boyson, Research Professor
 

March 31, 2020

WATCH

Sizing the Eventual Economic Damage of COVID-19: A Risk Assessment
Clifford Rossi, Professor of the Practice & Executive-in-Residence

April 1, 2020

WATCH

Research

Considerable meteorological research suggests that the frequency and intensity of North Atlantic hurricanes are on the rise with 2020 expected to be one of the busiest on record. Loans where a category three, four, or five hurricane was experienced during the loan’s life were found to be 13-18 percent more likely to become 180 days or 90 days delinquent or more, respectively than other loans in the same locations, controlling for all other risk factors.

If long-term hurricane trends bear out, mortgage default risk in areas with a higher incidence of major hurricanes will likely rise significantly over time. This paper finds that the government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Housing Administration are potentially underpricing hurricane risk effects on default and that the use of catastrophe bonds offer one way to manage these risks.

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Robert H. Smith School of Business
Map of Robert H. Smith School of Business
University of Maryland
Robert H. Smith School of Business
Van Munching Hall
College Park MD 20742