Evgenii Pavlovskii’s Post

As the financial crisis and subsequent financial failings have shown, cohesive corporate governance and strong #Risk culture are at the heart of effective business practices and the top of the #Regulatory agenda. To emphasise this, on 24 July 2024, the European Central Bank (ECB) issued their draft guidance on governance and risk culture. This guidance sets out expectations of supervised banks in the form of a practical tool, inviting feedback from the industry by 16th October 2024. The ECB guidance outlines four key areas: 1. Governance and risk culture: importance for banks 2. Functioning and effectiveness of the management bodies 3. Internal control functions 4. Risk Appetite Framework Find out more 👉 https://lnkd.in/eKRZWvGM Kevin Coleman Amanda Ward Claire Miller Dwayne Price

Governance and risk culture remain insufficient at European banks, even though progress has been made in these important areas. As Marco Folpmers highlights here, in its new guidelines, the European Central Bank (ECB) introduces an important additional layer of criteria that financial risk managers (FRMs) can use to evaluate a bank’s risk culture. However, as Marco further comments, whilst it doesn’t provide a comprehensive description of a "bad bank," it does offers insight on potential red flags, enabling FRMs to incorporate a valuable new tool: the negative checklist.

Governance and risk culture remain insufficient at European banks, even though progress has been made in these important areas. As Marco Folpmers highlights here, in its new guidelines, the European Central Bank (ECB) introduces an important additional layer of criteria that financial risk managers (FRMs) can use to evaluate a bank’s risk culture. However, as Marco further comments, whilst it doesn’t provide a comprehensive description of a "bad bank," it does offers insight on potential red flags, enabling FRMs to incorporate a valuable new tool: the negative checklist. …more

The European Central Bank has released its new Draft Guide on #governance and #RiskCulture, replacing the 2016 SSM Supervisory Statement. This guide emphasizes the importance of robust governance frameworks in risk management, highlighting the principle that "well-run banks mean safer banks". The guide aims to bolster the stability and #resilience of the #EU's #banking sector, ensuring a secure #financial system. The consultation period runs until 16 October 2024. For more details, read the full article here: https://lnkd.in/dADfgiCa #GTG #FinancialServices #Fintech #DORA #ECB #RiskManagement #RiskCulture Ian Gauci l Cherise Abela Grech l J.J. Galea

Counterparty credit risk (CCR) management frameworks are facing significant challenges as they struggle to keep pace with evolving regulatory requirements. A recent review by the European Central Bank (ECB) of 23 financial institutions has unveiled critical vulnerabilities in these frameworks, especially in their approaches to governance, risk control, and stress testing. The review identified 43 sound practices aimed at bolstering these areas, particularly emphasizing improved customer due diligence and better management of complex CCR exposures. This development underscores the pressing need for financial institutions to reevaluate their risk management strategies, particularly in light of technological advancements and increased scrutiny. Emphasizing a robust stress test framework that includes considerations for tail events is vital for safeguarding against unexpected market shifts. What strategies do you believe are essential for enhancing CCR management in today's financial landscape? #FinancialServices #RiskManagement #CCR #ECB #BankingIndustry https://lnkd.in/eFDT7jFB

Central banks worldwide have now completed their surveys for the Risk Management Benchmark 2025. Initial commentary highlights trends in staffing within central banks' risk management divisions: https://hubs.li/Q03200fw0 This exclusive article from the Benchmarking Service provides Central Banking Institute members with valuable data and insights to enhance risk management strategies and meet global standards. Not a member? Join before the full Risk Management Benchmark report is published at the end of the month: https://hubs.li/Q031_-0F0 #riskmanagement #benchmarking #centralbanking

https://lnkd.in/etBatBbT #GARP shares insights at the recent #ECB’s approach for improving #Culture and #Risk Governance at European Banks.

New ECB Guide on Governance and Risk Culture out for consultation. The Guide will replace 2016 version on how management bodies and committees should be composed and function, spells out the roles and responsibilities of the internal control functions, emphasises the importance of risk culture and outlines expectations regarding the risk appetite frameworks of banks.

The Evolving Role of G-SIBs: Is Big Beautiful Again? There is a growing appreciation for global systemically important banks. But G-SIBs still face tough risk management standards and high capital requirements, and there is evidence that some extremely large banks are attempting to game the system, potentially increasing systemic risk.