Knowledge base  ERM

View all AML - CDD - KYC Artificial Intelligence Basel Brexit ERM GDPR Governance - Behavioral Risk - Soft Controls Insurance MiFID Security 

How geo-economic fragmentation affects financial stability

10 July 2024
Knowledge Base

by Olaf Sleijpen

Our world is currently threatened by increasing fragmentation, both political and economic. This makes it increasingly difficult to foresee all shocks, and so, it has brought new challenges to the community of macroprudential experts,’ concluded Olaf Sleijpen in his opening speech at the 8th Annual Macroprudential Conference, organised by the Bundesbank, the Sveriges Riksbank and De Nederlandsche Bank. I would like to share latest on a number of macroprudential topics, but also to talk about that one thing that’s on every central banker’s mind… money. Now, I don’t want to talk about some abstract notion of money today. No, I’d like to talk about a very particular coin. And that’s the Reichsthaler in German, the riksdaler in Swedish, and the rijksdaalder in Dutch. Continue reading…

Three Lines of Defense: No more D in 3LOD

23 May 2024
Knowledge Base

by Elena Pykhova

The three lines of defence (3LOD) model, which had its origins in military planning and sports management, is now firmly engrained into the DNA of financial services firms. It is widely viewed as an important factor in the successful embedding of enterprise risk management. Designed by the Institute of Internal Auditors (IIA), the model distinguishes between the three groups (or lines) involved in effective risk management:

functions that own and manage risks; functions that oversee risks; functions that provide independent assurance.

Continue reading…

Three key ECB interest rates unchanged

22 April 2024
Knowledge Base

by Christine Lagarde

The Governing Council decided last week to keep the three key ECB interest rates unchanged. The incoming information has broadly confirmed our previous assessment of the medium-term inflation outlook. Inflation has continued to fall, led by lower food and goods price inflation. Most measures of underlying inflation are easing, wage growth is gradually moderating, and firms are absorbing part of the rise in labour costs in their profits. Financing conditions remain restrictive and our past interest rate increases continue to weigh on demand, which is helping to push down inflation. But domestic price pressures are strong and are keeping services price inflation high. Continue reading…

Are banks afraid of the digital euro?

19 April 2024
Knowledge Base

by Hans Timmrman

In 2019, the initiative ‘Positive Money Europe’ was launched. It is a non-profit organization aimed at repairing the ‘broken’ financial system in Europe and making the economy fairer, more democratic, and more sustainable. In their view, the European Central Bank (ECB) does too little for the average citizen and thereby for our society as a whole. Their example was ‘Positive Money UK’, which similarly focused on the Bank of England with a successful campaign called ‘Quantitative Easing for the People’. In short, all the money printed by central banks, partly due to significant inflation, primarily benefits financial institutions and hardly benefits the population. They want to change that. The ECB should primarily serve EU citizens. In this pursuit, they see the Digital European currency (CBDC) as an innovative solution to this problem. Continue reading…

Technology-Enabled Compliance is More Proactive, Adaptable and Comprehensive

27 March 2024
Knowledge Base

by Uzi Rosha

Compliance programs serve as a critical foundation for ensuring financial institutions operate within legal and regulatory boundaries. The dynamic and complex nature of financial regulations necessitates a strategic approach to compliance, one that is proactive, adaptable, and comprehensive. Traditional compliance frameworks, while foundational, often struggle to keep pace with the rapid evolution of financial products, services, and regulations. In the rapidly evolving financial sector, technology plays a pivotal role in enhancing the effectiveness and efficiency of compliance programs. Continue reading…

Larger companies will have to work hard in the coming years as a result of the CSDDD

08 March 2024
Knowledge Base

by Michel Klompmaker

On 1 June 2023, The European Parliament reached a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD for short). This directive requires all large organisations in Europe to identify and, where necessary, prevent, eliminate or reduce the negative impact of their activities on human rights and the environment in their value chains. Thus, the CSDDD is a duty of due diligence that affects entire value chains. We talked about this directive with Johan Löfquist, Head of Sustainability Data at Worldfavor. Continue reading…

The Tone at the Top: Technology Enhancing Compliance Performance in the Financial Sector

06 March 2024
Knowledge Base

by Uzi Rosha

In an era marked by rapid technological advancements and increasing complexity, financial institutions face significant challenges in maintaining compliance with an ever-expanding array of legal and regulatory requirements. Financial firms have the opportunity to integrate technology to enhance effectiveness and efficiency, better meeting regulatory expectations and gaining competitive advantage. Continue reading…

A new era for corporate taxation in the EU enters into force today

01 January 2024
Knowledge Base

Ground-breaking new EU rules come into effect today introducing a minimum rate of effective taxation of 15% for multinational companies active in EU Member States. The framework will bring greater fairness and stability to the tax landscape in the EU and globally, while making it more modern and better adapted to today’s globalised, digital world. The entry into force of the minimum effective taxation rules, unanimously agreed by Member States in 2022, formalises the EU’s implementation of the so-called ‘Pillar 2′ rules agreed as part of the global deal on international tax reform in 2021.
Continue reading…