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European Single Market is turning 30

09 January 2023
Knowledge Base

This year, the EU celebrates the 30th anniversary of its Single Market – one of the major achievements of European integration, and one of its key drivers. Established on 1 January 1993, the European Single Market allows goods, services, people and capital to move around the EU freely, making life easier for people and opening up new opportunities for businesses. Over 30 years, the Single Market has led to an unprecedented market integration between Member States’ economies, serving as a driver for growth and competitiveness and supporting Europe’s economic and political power at a global level. It also played a key role in accelerating the economic development of new Member States that joined the EU, removing barriers to entry and boosting growth. Continue reading…

Elena Pykhova

Elena Pykhova

Elena Pykhova is a thought leader, influencer and founder of a think tank, Best Practice Operational Risk Forum.

ESG or E, S and G: A note for risk practitioners

04 November 2022
Knowledge Base

Without doubt, environmental, social and governance (ESG) considerations are becoming increasingly important for organisations and their teams, with businesses being judged on their ESG performance. The catch-all acronym, however, which in reality combines three distinct and separate matters under one umbrella, tends to be misused and overused, creating a lexicon of ESG specialists, ESG departments and ESG risks. In fact, the Bank for International Settlement (BIS)’s paper on ‘Deconstructing ESG scores: how to invest with your own criteria’[1] highlights that it is nearly impossible to create a portfolio aligned with all three ESG values. Investors should separate and align their portfolios with either E, S or G factors. Continue reading…

FSB analyses liquidity in core government bond markets

28 October 2022
Knowledge Base

The Financial Stability Board (FSB) recently published a report on liquidity in core government bond markets. The report forms part of the FSB’s work programme to enhance the resilience of non-bank financial intermediation (NBFI). Changes in core government bond markets over the past decade may have made them more prone to liquidity imbalances in times of stress. The severe dislocations experienced in those markets during the March 2020 turmoil were the outcome of large spikes in the demand for liquidity by various market participants, especially non-banks. Continue reading…

Kwayga supports Ukrainian businesses with free access to its platform

27 October 2022
Knowledge Base

Kwayga, the leading online matching platform for national and international B2B buyers and suppliers within the food and beverage industry, has announced that it will be offering one year free premium membership to its platform to Ukrainian food and beverage suppliers as a way of supporting the industry during the ongoing conflict with Russia. The announcement came during the recent webinar hosted by Kwayga called ‘Ukraine is open for business’ and included speakers such as Taras Kachka, Deputy Minister of Trade Representative at the Ministry of Economy of Ukraine, Larysa Gerasko, Ambassador of Ukraine to Ireland and Mariia Dehtiarova, Export Promotion Manager at U-Food Association, whose mission it is to develop and promote Ukrainian food worldwide. Continue reading…

Millions of Britons struggling with bills, warns regulator

25 October 2022
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The Financial Conduct Authority (FCA) has found 7.8 million people are finding it a heavy burden to keep up with their bills, an increase of around 2.5 million people since 2020. The FCA has published a snapshot of the latest edition of its landmark Financial Lives survey, which was carried out between February and June 2022. One in four UK adults are in financial difficulty or could quickly find themselves in difficulty if they suffered a financial shock, and 4.2 million people have missed bills or loan payments in at least three of the six months before the survey took place.   Continue reading…

Russian war adds uncertainty and volatility to EU financial markets

11 October 2022
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The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published the second Trends, Risks and Vulnerabilities (TRV) Report of 2022. The Russian war on Ukraine against a backdrop of already-increasing inflation has profoundly impacted the risk environment of EU financial markets, with overall risks to ESMA’s remit remaining at its highest level. In the first half of 2022 financial markets saw faltering recoveries, increasing volatility and likelihood of market corrections. Separately, crypto-markets saw large falls in value and the collapse of an algorithmic stablecoin, highlighting again the very high-risk nature of the sector. Continue reading…

ESMA stress test of Central Counterparties finds clearing system resilient

31 August 2022
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The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published the results of its fourth stress test exercise of Central Counterparties (CCPs). The results confirm the overall resilience of European Union (EU) CCPs, as well as third country Tier 2 CCPs, to credit, concentration and operational risks under the tested scenarios and implemented framework. However, the stress test also identified areas where some CCPs may need to strengthen their risk management frameworks, or where further supervisory work should be prioritised, including on concentration and operational risks. Continue reading…

Yannis Stournaras: Normalising monetary policy in the euro area

04 April 2022
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Yannis Stournaras, Governor of the Bank of Greece, made a speech at the EUROFI High Level Seminar 2022, Paris on 28 February 2022. What we observe today is mostly supply-side inflation. In fact, the acceleration of inflation mainly reflects two interrelated supply-side shocks: One comes from the pandemic. Actually, we had a series of pandemic shocks, then we had an energy shock, and finally we have the invasion of Russia in Ukraine, which, regarding its economic implications, is also a supply-side shock. In the short term, its implications are stagflationary, but, in the medium term, the implications are deflationary, depending of course on the resolution of the uncertainty. We do not know much about the resolution of the Ukrainian crisis at this moment, so we have to be cautious. Continue reading…

European Central Bank announces timeline to gradually phase out temporary pandemic collateral easing measures

28 March 2022
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The Governing Council of the European Central Bank (ECB) has decided to gradually phase out the package of pandemic collateral easing measures in place since April 2020. The Governing Council has taken into account in a forward-looking manner the impact of this gradual phasing out on the collateral availability of Eurosystem counterparties, in particular with regard to their ability to continue mobilising collateral until the maturity of the outstanding targeted longer-term refinancing operations (TLTRO III). Moreover, it has considered the risk impact of each of these measures. This gradual phasing out allows ample time for the Eurosystem’s counterparties to adapt, and is scheduled to take place in the following three steps.
Continue reading…

FSB, CPMI and IOSCO analysis highlights need to continue work on CCP financial resources

24 March 2022
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The Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements, and the International Organisation of Securities Commissions (IOSCO) have today published a report analysing existing financial resources and tools for central counterparty (CCP) recovery and resolution, which confirmed the need for further work on CCP financial resources. In November 2020, the Chairs of the FSB, CPMI, IOSCO and of the FSB’s Resolution Steering Group publicly committed to collaborate on and conduct further work on CCP financial resources in recovery and resolution. This report presents the results of the evidence gathering and analysis on existing financial resources and tools for CCP recovery and resolution carried out in 2021. Continue reading…