Manoj Kulwal’s Post

📍The European Central Bank are taking a proactive approach to enhancing risk data aggregation and reporting (RDARR) processes. 💡 In today's ever-evolving financial landscape, robust risk management practices are non-negotiable. Despite advancements, many banks still grapple with addressing weaknesses in RDARR, prompting the ECB to take action. 🎯 Key among the ECB's priorities is the integration of internal risk reporting mechanisms throughout banking institutions. 🔄 This entails not only fortifying internal risk management systems but also harmonising them with regulatory reporting processes, leveraging digital, XBRL-based formats for enhanced efficiency and accuracy. 🚀 By bridging the gap between internal and regulatory risk reporting, the ECB aims to ensure seamless data flow, empowering both banks and supervisors with comprehensive insights into the sector's risk landscape. 👉 Read more here: https://zurl.co/RlCu #ECB #riskmanagement #banking #supervision #riskdata #regulatoryreporting #finance #leadership #innovation #bankingregulation #financeindustry

The European Central Bank (ECB) recently published a draft guide highlighting the crucial role of good governance and risk culture for EU banks. This guidance is essential for maintaining the stability of the financial system and public trust. Poor governance and risk culture can lead to detrimental decision-making and excessive risk-taking, potentially jeopardizing a bank's capital and operational resilience. The ECB's guide outlines key supervisory expectations, focusing on four dimensions of risk culture: leadership tone from the top, effective communication, diversity and challenge, accountability for risks, and appropriate incentives. Key Implications for Banks: 1. Enhanced Governance Frameworks: Banks must implement strong governance structures, clear organizational roles, effective risk management processes, and robust control mechanisms. 2. Strong Risk Culture: A culture of prudent risk-taking should be fostered, with leadership promoting open communication and accountability. Employees must understand and adhere to risk management principles. 3. Risk-Aligned Incentives:Compensation and incentive structures should align with the bank's long-term goals and risk profile, discouraging excessive risk-taking. 4. Regulatory Compliance: Banks are required to comply with EU regulations and guidelines on governance and risk culture, including those from the EBA and ECB. 5. Supervisory Scrutiny:The ECB will closely monitor banks' adherence to these guidelines. Banks need to be prepared to demonstrate compliance and address any identified issues. #Banking #FinancialStability #Governance #RiskManagement #ECB

The European Central Bank's Draft Guide on Governance and Risk Culture aims to demonstrate that effective governance and a robust risk culture are fundamental to the success of any organisation, influencing its structural integrity, cultural dynamics and personnel management. In the banking sector, establishing a cohesive organisational framework and a well-defined management body, along with clear values, norms and behavioural expectations, is critical for ensuring operational soundness, strategic planning and informed decision-making. Enhanced strategic steering capabilities are particularly vital in navigating the challenges presented by the continually evolving financial landscape, allowing banks to remain resilient and adaptive. Related link: Draft guide on governance and risk culture - https://lnkd.in/eqSJMRxD Kashnie Naidoo Charlotte Gamede Krishna Govender

The European Central Bank (ECB) has published a guide emphasizing the importance of good governance and risk culture for banks in the EU. This is crucial for maintaining the financial system's stability and public trust. Deficiencies in governance and risk culture can lead to poor decision-making and excessive risk-taking, potentially threatening a bank's capital and operational resilience. The ECB guide outlines key supervisory expectations when assessing governance and risk culture, highlighting four dimensions of risk culture: tone from the top and leadership, a culture of effective communication, challenge diversity, accountability for risks, and appropriate incentives. Firm Implications: Enhanced Governance Frameworks: Banks must establish robust governance arrangements, including clear organizational structures, well-defined responsibilities, effective risk management processes, and control mechanisms. Strong Risk Culture: Banks should foster a culture of prudent risk-taking through solid leadership, open communication, and a focus on accountability. They must ensure that employees understand and adhere to risk management principles. Risk-Aligned Incentives: Remuneration and incentive structures should be aligned with the bank's long-term interests and risk profile, discouraging excessive risk-taking. Regulatory Compliance: Banks must comply with EU regulations and guidelines on governance and risk culture, including those issued by the EBA and the ECB. Supervisory Scrutiny: The ECB will increasingly scrutinize banks' governance and risk culture practices. Banks should be prepared to demonstrate their adherence to the guidelines and address any identified weaknesses. Proportionality: While the guidelines apply to all banks, the specific governance arrangements and mechanisms should be proportionate to the nature, scale, and complexity of the bank's activities and risks. The ECB guide aims to promote a more sustainable banking sector by ensuring banks have strong internal governance and a sound risk culture. This will contribute to financial stability and public confidence in the banking system. #ECBBankingSupervision #GovernanceAndRiskCulture #BankingRegulation #RiskManagement #FinancialStability #EUGovernance #BankingIndustry #Compliance #CorporateGovernance

On May 3 2024, the European Central Bank (#ECB) published its final guide on risk data aggregation and risk reporting (#RDARR). 🛡️ Join Deloitte experts Andris Liepins, Dagnija Bērziņa and Elena Grigore this Wednesday, 12 June at 11 AM 📅 to explore the core principles and requirements of the guide. 🔗 Sign up now to learn practical strategies for maintaining compliance and enhancing your risk data management: https://deloi.tt/4arULAs. #Deloitte #RiskAdvisory #RiskManagement #banking #webinar

𝗡𝗲𝘄 𝗕𝗹𝗼𝗴 𝗣𝗼𝘀𝘁: 𝗔 𝗖𝗹𝗼𝘀𝗲 𝗟𝗼𝗼𝗸 𝗮𝘁 𝘁𝗵𝗲 𝗘𝗕𝗔’𝘀 𝟮𝟬𝟮𝟰 𝗥𝗶𝘀𝗸 𝗔𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 𝗥𝗲𝗽𝗼𝗿𝘁 🌐 The European Banking Authority’s (#EBA) July 2024 Risk Assessment Report (RAR) examines the critical risks and challenges facing the #EU and #EEA banking sectors. From emerging vulnerabilities to forward-looking projections, the report provides essential insights into the sector’s landscape and the trends likely to impact banks in the coming years. Check out our latest article to find out more 👉 https://lnkd.in/eQna7FAi

On May 3 2024, the European Central Bank (#ECB) published its final guide on risk data aggregation and risk reporting (#RDARR). 🛡️ Join Deloitte experts Andris Liepins, Dagnija Bērziņa and Elena Grigore this Wednesday, 12 June at 11 AM 📅 to explore the core principles and requirements of the guide. 🔗 Sign up now to learn practical strategies for maintaining compliance and enhancing your risk data management: https://deloi.tt/4arULAs. #Deloitte #RiskAdvisory #RiskManagement #banking #webinar

📢 The European Central Bank just published its Draft guide on governance and risk culture. Take a look at the post below published by Maureen Finglass for some initial highlights. Further analysis to be published here soon: https://lnkd.in/ezt2Rb49

On May 3, 2024, the European Central Bank (#ECB) published its final guide on risk data aggregation and risk reporting (#RDARR). 🛡️ Join Deloitte experts Andris Liepins, Dagnija Bērziņa, and Elena Grigore this Wednesday, 12 June at 11 AM 📅 to explore the core principles and requirements of the guide. 🔗 Sign up now to learn practical strategies for maintaining compliance and enhancing your risk data management: https://deloi.tt/4arULAs. #Deloitte #RiskAdvisory #RiskManagement #banking #webinar

"Our supervisory priorities for 2025-27 focus on strengthening banks’ ability to withstand macro-financial and geopolitical shocks, and on ensuring that banks remediate material and persistent shortcomings in a timely manner and address emerging challenges." ➡️ Check out this blog post by ECB Banking Supervision.