Risk Landscape Review – March 2024
The European Risk Management Council has published the Q1 2024 Risk Landscape Review. This publication focuses on updating the Risk Sentiment Index (RSI), an expert-driven, forward-looking index that captures the expectations of Chief Risk Officers and other risk executives regarding the risk landscape of the financial sector in the next 12 months. For the first time, the European Risk Management Council conducted RSI surveys simultaneously in the UK, the US, and APAC. This enables us to conduct a comprehensive comparison of respondents’ risk perceptions across three regions, including their perspectives on top risks and potential future risk trends.
Please download the Q1 2024 edition of the Review from our Resource Centre.
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The Americas Risk Management Council has been launched
The European Risk Management Council has launched of its new regional chapter – The Americas Risk Management Council (ARMC). This strategic expansion marks the Council’s third regional chapter complementing its existing European and Asia-Pacific divisions. The ARMC’s inaugural meeting took place in New York on 25 October 2023. The launch of ARMC will allow to expand Council’s network which already includes more than 250 banks, insurers and other financial institutions and enhance effective cross-regional sharing of industry’s best practices in risk management and compliance among Europe, Americas, and Asia-Pacific.
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Going digital has transformed systemic risk
Dr Evgueni Ivantsov wrote his opinion piece on systemic risk, which was published by Financial Times’ Banking Risk & Regulation. In the article, he expresses a concern about emerging systemic “fault lines” due to the rapid digital transformation that has taken place in recent years. Alongside the well-known tech risks in the areas of cyber security and IT resilience, there is a potential for an unnoticed accumulation of systemic risk driven by digital transformation and arising from hidden concentrations, structural changes within industries, increasing interconnectedness, and model risks.
Please read the article here
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Three Lessons for Risk Managers and Regulators from SVB’s collapse
Dr. Evgueni Ivantsov, Chairman of the European Risk Management Council, authored an article titled “Three Lessons for Risk Managers and Regulators from SVB’s Collapse.” The article was recently published by the Financial Times’ Global Risk Regulator. Drawing from an analysis of SVB’s fiasco, Dr. Ivantsov proposes significant improvements to current risk management and regulatory practices. These enhancements aim to prevent similar banking failures in the future.
Please read the article here
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How to survive a “perfect storm”
Dr Evgueni Ivantsov, the Chairman of the European Risk Management Council, wrote an article “How risk managers can survive a ‘perfect storm’ which was recently published by the Financial Times. In the article, Dr Ivantsov shares his perspective on how risk professionals should deal with the current extraordinary risk landscape when three global crises unfolded simultaneously: a public health crisis which, on average, occurs once in 100 years; a major geopolitical crisis which has not happened in a generation; and a global climate crisis which has no precedent in human history at all. Dealing with today’s toxic mix of events, risk professionals should bring risk management frameworks to a new level which allows to successfully counter tail risk events.
Please read the article here
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The Sustainability Think Tank has been launched:
The European Risk Management Council has launched the Sustainability Think Tank. As the financial services industry transitions to the more sustainable business model, the Sustainability Think Tank serves as a communication platform and knowledge centre, bringing together business leaders (CEOs and Boards), risk leaders (CROs) and top ESG/sustainability experts to define and drive the industry’s climate risk agenda and help financial institutions in their journey to sustainable finance. The Sustainability Think Tank includes two streams: Europe/Americas and APAC/MEA.
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Where are the opportunities for banks?
Dr Evgueni Ivantsov, the Chairman of the European Risk Management Council, contributed to the recent publication of the Banker magazine. The magazine invited Dr Ivantsov to share his view on challenges, priorities and opportunities for banks. Other members of the expert panel who contributed to the publication were Tim Adams, President and CEO at Institute of International Finance (IIF) and former Under Secretary for International Affairs at US Treasury, Alicia García-Herrero, Chief Economist for Asia Pacific at Natixis, James Longsdon, Global Head of Banks at Fitch Ratings, and Sam Theodore, Lead Portfolio Manager at BlackRock.
Please read the article here
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See below the most recent Council’s think tank meetings:
