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

EY Professor Lawrence A. Gordon highlights that cyber risks pose significant threats to businesses, particularly small ones. Limited resources make small businesses prime targets for cybercriminals, who exploit their vulnerabilities, underscoring the need for affordable cybersecurity measures.

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 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.

Smith’s Teaching/Learning Innovation Grant supports Cliff Rossi’s experiential learning project, where students analyze climate risk impacts on mortgages using machine learning. The project develops industry-relevant skills, preparing students for top finance roles and advancing climate-risk insights in housing.

Clifford Rossi argues that the homeowners insurance market is unraveling due to rising natural disaster risks. He proposes a government-sponsored entity to centralize hazard insurance, improving risk management and financial stability.

The collapse of regional banks in 2023 revealed widespread risk mismanagement and prompted regulatory scrutiny. Rising interest rates now threaten community banks, highlighting the need for robust management. University of Maryland students investigated these issues in a national case competition with local banks.

Reddit featured UMD professors Clifford Rossi and Tim Canty in a "climate finance" Ask Me Anything session, highlighting their collaboration in climate finance education and their new MS in Climate Finance and Risk Management degree.

Federal regulators are drafting new capital rules for banks, contested by industry experts like Clifford Rossi, Professor of the Practice and Director of SERC at the University of Maryland’s Robert H. Smith School of Business. Rossi argues against the rules as he warns of adverse economic impacts.