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, European Risk Management Council ran 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.

By Amar Laddha, Technology Product Management Associate Director, Wolters Kluwer FRR

As operating and compliance challenges mount, bankers need a comprehensive approach to data analysis, risk management and regulatory reporting so they can devote more energy to strategic planning.

By Wolters Kluwer

Current market conditions have shown that Asset and Liability Management cannot be ignored. In some jurisdictions, regulation is being introduced such as the EU with updates to the Interest Rate Risk in the Banking Book (IRRBB) guidelines. However, regardless of the regulations in a particular jurisdiction, all banks need to be able to manage their balance sheet in such a way that inspires confidence, internally and to their customers, the market and regulators alike. This is a cornerstone of broader good business management.

The European Risk Management Council has published the Q4 2023 Risk Landscape Review. This edition includes an article “Towards a New Model Risk Management Paradigm” by William Hahn, Partner and Global Head of Financial Risk and Model Risk Management at TCS CRO Strategy Advisory, and at update of the Risk Sentiment Index. The results of surveys conducted in the UK and the US suggest that while CROs in both countries expect a mild increase in risk in 2024, the potential areas of stress and volatility might differ for the UK and the US financial services.

In order to study and analyze the evolution of CRO function, TCS and Chartis undertook structured research, working with CROs and risk unit staff across institutions with a focus on technology and operating processes. The report examines the increased centralization, externalization, and the broader role of the risk function. While the context for much of the CRO’s evolution is credit risk, the evolving role of the risk function aggregates a range of processes, providing value to the organization through integrated risk strategy, risk management processes, risk infrastructure, and risk culture.

The European Risk Management Council has published the Q2 2023 Risk Landscape Review. This edition includes the update of  the Risk Sentiment Index. Q2 2023 surveys conducted by the Council in the UK and APAC have yielded intriguing findings. While major risk drivers such as geopolitical tension, high inflation, and market volatility possess a global nature, our experts in the UK and APAC hold notably distinct expectations regarding the future dynamics of the risk landscape for financial services.

by Michael Imeson, a Senior Content Editor at Financial Times Live; a Contributing Editor of The Banker.

Banks and other financial services firms are using AI to improve their
risk management, but there are a few obstacles to overcome

McKinsey Global Institute (MGI) research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders.

Reaching net-zero emissions by 2050 – and thus limiting the rise in global temperatures to 1.5°C above pre-industrial levels – would involve profound economic and societal shifts. McKinsey analysis offers a window into what it would take across sectors and regions.

by Rob Bland, Anna Granskog, and Tomas Nauclér, McKinsey & Co.

Surging demand for zero-carbon technologies, materials, and services gives companies opportunities to build new green businesses. Leaders that move quickly could see exponential growth.

by Lucy Pérez, Vivian Hunt, Hamid Samandari, Robin Nuttall, and Krysta Biniek, McKinsey & Co.

Although valid questions have been raised about ESG, the need for companies to understand and address their externalities is likely to become essential to maintaining their social license.