As the business environment for financial institutions grows increasingly more complex and challenging, more and more banks are rethinking their risk management systems to encompass a growing number of nonfinancial risks. In a recent Ernst & Young survey of major financial institutions titled “Rethinking Risk Management,” which included respondents from 29 economies, banks are realizing the need to reengineer some aspects of risk management with new approaches and tools. While the study looks at various aspects of risk, including risk culture, risk appetites, and the impact of Basel III, we will focus on the area of nonfinancial risks as a growing concern for banks, particularly for global systemically important financial institutions (G-SIFI).
Dec 202015