Risk Management in the Exchange Fund Account

In this article, author Michel Rochette of the Bank's Risk-Management Unit briefly describes the initiatives undertaken to identify, analyze, model, and manage the principal risks inherent in the transactions of the Exchange Fund Account (EFA), where the international reserves of the federal government are held. The author focuses on five types of risk: credit risk, market risk, liquidity risk, operational risk, and legal risk. In addition, the author presents the risk-management principles underlying the activities of the EFA and the governance structure of the Account.

From risk management to ERM

At one point in time, there was self-insurance. Then came risk management. Now comes the era of enterprise risk management(ERM). Traditional risk management will always be necessary, but ERM will complement existing risk activities by extending the field to cover all core risks as well as emerging and strategic opportunities, because without taking risks, organisations gain no value. This paper will present the main elements of an ERM framework and characteristics of different types of ERM.ERM, CRO, risk management, risk designation, risk framework, risk system, risk culture, governance, risk intelligence, risk capital, GIR

THE COMPETITIVE ADVANTAGE AS A RESULT OF AN ORGANIZATIONAL CHART BASED ON MARKET ORIENTATION

The competitive advantage can be obtained by the use of specific strategies in an international context: off shoring and outsourcing. These, however, have limitations such as the ephemeral nature of the benefit obtained and difficulties such as building effective collaboration reflected by the need to pay particular attention to differences in professional and national cultures (between partners). The market orientation as a basis for the reconfiguration of the organizational chart and may be useful for the establishment of a value system designed to strengthen the competitive advantage.off shoring outsourcing, competitive advantage, value system, organizational patterns, market orientation, culture.

Phase Harmonic Correlations and Convolutional Neural Networks

A major issue in harmonic analysis is to capture the phase dependence of frequency representations, which carries important signal properties. It seems that convolutional neural networks have found a way. Over time-series and images, convolutional networks often learn a first layer of filters which are well localized in the frequency domain, with different phases. We show that a rectifier then acts as a filter on the phase of the resulting coefficients. It computes signal descriptors which are local in space, frequency and phase. The non-linear phase filter becomes a multiplicative operator over phase harmonics computed with a Fourier transform along the phase. We prove that it defines a bi-Lipschitz and invertible representation. The correlations of phase harmonics coefficients characterise coherent structures from their phase dependence across frequencies. For wavelet filters, we show numerically that signals having sparse wavelet coefficients can be recovered from few phase harmonic correlations, which provide a compressive representationComment: 26 pages, 8 figure

Stability of Relativistic Matter with Magnetic Fields for Nuclear Charges up to the Critical Value

We give a proof of stability of relativistic matter with magnetic fields all the way up to the critical value of the nuclear charge $Z\alpha=2/\pi$.Comment: LaTeX2e, 12 page

Les institutions binationales prévues dans le chapitre 19 de l’Accord de libre-échange entre le Canada et les États-Unis au regard de l'article 96 de la Loi constitutionnelle de 1867

La décision d'imposer des droits antidumping et compensateurs relève de l'Administration publique fédérale et du Tribunal canadien du commerce extérieur. Lorsque des marchandises d'origine américaine sont frappées de tels droits, le recours aux groupes spéciaux binationaux, institués suivant le chapitre 19 de l’Accord de libre-échange entre le Canada et les États-Unis, se substitue à l'examen judiciaire de la Cour fédérale. Les comités de contestation extraordinaire, de même espèce, voient à la surveillance des groupes spéciaux. Les Etats-Unis désignent certains membres des groupes spéciaux et des comités. L'on ne saurait soutenir que le gouverneur général nomme ces membres suivant les formalités qu'impose l'article 96 de la Loi constitutionnelle de 1867. Sauf lorsque la Constitution est invoquée, aucune cour de justice ne pourrait contrôler la légalité de ces entités binationales. Les clauses privatives, édictées en vue de sauvegarder le mécanisme du chapitre 19, opèrent même en cas d excès de compétence. Or, le Parlement central, depuis l'arrêt McEvoy, est lié par l'article 96, et l'arrêt Crevier proscrit les clauses privatives qui englobent l'excès de compétence. En conséquence, l'auteur est d'avis qu'est compromise la constitutionnalité du mécanisme de l'Accord.The decision to impose antidumping and Countervailing duties is a prerogative of the federal public administration and the Canadian International Trade Tribunal. When such duties are levied on goods originating in the United States recourse to binational panels instituted under chapter 19 of the Free Trade Agreement are substitutedfor the judicial review of the Federal Court. The extraordinary challenge committees of like origin monitor the panels. The United States designates certain members of the panels and committees. In Canada, it could hardly be maintained that the governor general appoints these members under the procedures of section 96 of the Constitution Act, 1867. Except when the Constitution is invoked, no court of justice may review the legality of these binational entities. The privative clauses enacted for protecting the mechanism in chapter 19 operates even in cases beyond the scope of its powers. Yet since the McEvoy decision, the central Parliament is bound by section 96 and the Crevier decision forbids privative clauses that encompass powers in excess of their scope. As a result, the author maintains that the constitutionality of the Agreement's mechanism is compromised