2022 had a lot of surprises for the risk management community, but equally, it brought forward lots of foreseen developments. The final parts of the Basel III reform are being implemented; supervisory concern and stakeholder pressure are growing over ESG risks; and finally, people risk entered the CROs’ world. How does a risk manager stay ahead of unknown emerging risks? How can risk managers make new known risks tangible? And what’s the best way to address them, in a qualitative and quantitative manner? Last year, we asked our valued community for their thoughts on these key matters, and here, we collated 10 of your favourites.
You may think that with RiskMinds International 2022 behind us, this would be a pointless revisit, but then you’d miss out on our annual update on what keeps CROs awake at night and our exclusive interview with Thabile Nyaba, Chief Risk Officer at Old Mutual Insure and President at IRMSA, where she talks about the new challenges of risk leadership. Plus, we hear from Monika Bączyńska, Director, Financial Resources Management Department, mBank, who shines a light on the unsung heroes of the 1st LoD, and Sven Ludwig, Regional Director, PRMIA, helps us answer the question: what does sustainability actually mean in banking practice? And if this isn’t sufficient reason enough to go back, we’ve got a fantastic interview with Maurizio Garro, Senior Lead, IBOR Transition Programme at Lloyds Banking Group, on technology’s impact on the regulatory landscape. Flip through now!
Jaco Grobler, former CRO for a large South African banking group, is now an independent risk management and strategy expert. As a long-term contributor to the RiskMinds community, he has kindly shared with us his observations of the amalgamation of interconnected risks, including the build-up of systemic risks and the troubling trend of government bail-outs. Are quantitative risk management models ready to aid risk teams in the ensuing chaos? Grobler doubts it – read it for yourself.
Our previous publication to answer our favourite question: what keeps CROs awake at night? Although priorities changed, the key risks highlighted by 7 CROs including James Turner, Group Chief Risk and Compliance Officer, Prudential plc, Deirdre Hannigan, Group Chief Risk Officer, AIB, and Ebbe Negenman, Chief Risk Officer, Knab and others, still ring true. Find out what they were.
Climate risks and the focus on ESGs and sustainability remains one of the most central topics within risk management. We know that to be the case, because we asked you, our valued community. In this eMagazine, we’ve also asked CROs to help us understand the biggest challenges ahead, which continues to be ESG focussed, but not necessarily climate change related. Federico Galizia, Chief Risk Officer, Inter-American Development Bank, (IDB), and Philippa Hertz, Chief Risk Officer, Risk & Governance, OneFamily, highlighted customer, colleague, and community well-being as a key concern moving forward, and integrating specific socio-environmental risk factors into existing frameworks will be a great challenge. Read now!
Jouni Aaltonen, Managing Director, Prudential Regulation Division, AFME, has provided us a fantastic snapshot of the increasingly challenging regulatory landscape. The last of the Basel III standards are being implemented but once it’s done, what does the future hold?
“Prudential policy-making is not about to end” – Aaltonen concludes, and here’s why.
Norman Marks, retired CAE and CRO and thought leader in internal audit, risk management and governance, tackles the great resignation and what it means for risk management teams.
“While many are focused on issues like cyber, saying it is perhaps the greatest source of risk to an organisation today, I believe there are greater sources of concern” – Marks noted. Read his explanation here!
Will the rise of smaller reserve currencies have any significant impact on the US dollar’s ‘exorbitant privilege’ in the years to come?
Krishnan Ranganathan, Executive Director, Nomura India, explores the global dominance of the USD currency. What’s your favourite fact he shared? That fact that nearly three quarters of all $100 banknotes are circulated outside the US? Or that countries that have no connection to the US use the US dollar when pricing goods and services? Find out more!
Did you know that a McKinsey research estimates “that cumulative spending on physical assets in energy and land use would have to rise to $275 trillion globally over the next 30 years” to achieve net-zero by 2050? That means a massive reallocation of capital. How might bankers, investors, and others in the financial community respond to the challenge? Mekala Krishnan, McKinsey & Company, and Hamid Samandari, McKinsey Global Institute, explore.
In this interview, Hanna Sarraf, Group Chief Risk Officer, Bankmed, tackles banking resiliency in the face of the pandemic, building flexible and agile processes to better adapt and respond, becoming "fit for the future", and expecting the unexpected. Watch below.
What will be the challenges for businesses in further developing sustainable strategies and how does the risk management sector in financial services address climate risk? We spoke to Radka Margitova, Director, ESG Risk Management, PwC, Nicole Röttmer, Partner, PwC, and Nick Stansbury, Head of Climate Solutions, Legal & General Investment Management (LGIM), to understand where we’re at. Watch the interviews here.