News

The Smith Enterprise Risk Consortium (SERC) at UMD’s Smith School released Q2 2024 results for its Mortgage Credit Risk Index (MCRI) and Mortgage Redtail Risk Index (MRRI). SERC Director Clifford Rossi noted that credit risk remains stable despite a slight year-over-year rise.

Lemma W. Senbet, Dean’s Chaired Professor at the Smith School, has joined the Bretton Woods Committee, a leading advocate for global economic cooperation. A renowned finance scholar, Senbet was also inducted as a Fellow of the Academy of International Business in 2022.

Risk expert Clifford Rossi testified before Maryland lawmakers on January 21, 2025, warning that extreme climate events, like the recent LA fires, are overwhelming insurance companies. He proposed creating a federally chartered National Hazard Insurance Corporation (NHIC) to address the crisis.

Risk events often deemed "unprecedented" are typically extreme iterations of past occurrences, argues Clifford Rossi, Professor of the Practice and Director of the Smith Enterprise Risk Consortium. Comparing these to “Killer Bees,” he emphasizes proactive risk management, urging organizations to anticipate and mitigate low-probability, high-severity scenarios with robust strategies and resources.

Poor risk management practices eventually come back to haunt those organizations that fail to take a broad and proactive view at managing risk.

Michael Faulkender, Dean’s Professor of Finance at the Smith School, has been nominated as U.S. Deputy Secretary of the Treasury. A former Treasury economist, he played a pivotal role in shaping COVID-19 relief efforts and is a leading voice in financial policy research. His nomination awaits Senate confirmation.

Three Smith seniors were honored as Philip Merrill Presidential Scholars, recognizing mentorship’s impact. At a Nov. 1 ceremony, Abigail Manga, Adelina Seck, and Grayson Vintz celebrated their achievements alongside K-12 and Smith mentors, highlighting the program’s legacy of excellence.

Risk decisions often falter due to cognitive biases, underdeveloped decision-making processes, and overreliance on models. Clifford Rossi argues that robust frameworks and balanced decision structures are essential to navigate uncertainty effectively and mitigate poor risk outcomes.

The Center for Global Business hosted Raghuram Rajan in a discussion on India's economic growth, human capital needs, and innovation for long-term prosperity. Rajan emphasized job creation, skilled services, and democracy’s role in fostering creativity and economic progress.

The Smith School's Enterprise Risk Consortium introduces two mortgage risk indexes: the Mortgage Credit Risk Index (MCRI) and Mortgage Redtail Risk Index (MRRI). MCRI measures 3-5-year default risk on GSE-eligible loans, while MRRI identifies loans with high-risk factors, aiding lenders, investors, and regulators in assessing mortgage credit risk and adverse selection.