Global risk management survey, 11th edition
Reimagining risk management to mitigate looming economic dangers and nonfinancial risks
Financial institutions have extensive experience, well-developed methodologies, and access to required data to manage financial risks, and roughly 90 percent of respondents report that their institutions are extremely or very effective at managing market, credit, and liquidity risks. While there has been undeniable progress, risk management is now facing a new set of demands as it con- fronts a number of looming risks. Although the torrent of regulatory change has slowed, there remain major unresolved regulatory issues such as the global capital standard being developed by the International Associa- tion of Insurance Supervisors (IAIS) and adopting and implementing the final Basel III capital framework. Meanwhile, as individual regulators have become more willing to vary global regulations for their individual jurisdictions, global institutions need to respond to an increasing divergence in regulatory standards. Geo- political risk has increased due to the uncertainty over the final terms of the United Kingdom’s departure from the European Union (EU) under Brexit; continuing trade negotiations among the United States, China, the EU, and other jurisdictions; decelerating economic growth coupled with rising debt levels in China; and growing concerns that conditions may be ripe for another in the series of periodic financial crises that have affected the global financial markets and economy.
