Global Association of Risk Professionals (GARP)’s Post

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

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.

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

Network for Greening the Financial System (NGFS) released the second edition of the report, "Guide on climate-related disclosure for central banks". This second edition updates and revises the previous guide, including a new chapter on metrics and targets.  Summary: Organised around four thematic areas (Governance, Strategy, Risk management, and Metrics and targets), the guide introduces a distinction between “baseline” and “building block” disclosure recommendations. Key takeaway 1. Governance: Disclose the institutional climate-related goals, targets, and processes for informing the board and management on climate-related issues as well as climate-related governance structures for specific areas and functions 2. Strategy: Disclose climate-related impacts related to the central bank as well as the strategy – in terms of adaptation, capacity building and communication – for handling these impacts 3. Risk management: Disclose the processes for managing climate-related risks at the central bank, focusing on identification, assessment, and integration into risk management. 4. Metrics and targets: Disclose metrics and targets relating to the central bank’s management of climate-related risks and exposure to climate-related risks and opportunities. Full report attached.

Have you managed to unpick the recently published European Central Bank principles for managing intraday #liquidity risk? Baton Systems' Aaron Ayusa has, and in his #whitepaper published earlier this week, he's also mapped these principles against the functionality offered by Baton's solutions. We've already had a great response to this, and if you've not read it yet, then I encourage you to do so! https://lnkd.in/er8gSdfw

INTERESTING ARTICLE: Currency & ESG Risk in the Channel Islands is a concern for Banks

The European Central Bank has opened a public consultation on its draft guide concerning expectations regarding governance and risk culture, and its intentions to better supervise firms’ activities in this connection. #culture #governance #riskmanagement Keep Reading: https://lnkd.in/gWfR_6yr

The European Central Bank: "The ECB strongly recommends that significant institutions make substantial progress in improving their data aggregation capabilities and internal risk reporting practices and has identified seven key areas of concern." The guide on "Effective risk data aggregation and risk reporting" can be found in the link below. 📢 The ANSWER to "Effective risk data aggregation and risk reporting" is ActiveViam Atoti. 💡 🔎 ✅ #riskmanagement #bcbs239 #marketrisk #creditrisk #liquidityrisk #balancesheetrisk #riskanalytics #collateral #datamanagement #bigdata #frtb

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