Risk & Resilience

In the midst of extreme global uncertainty and market turbulence, BaFin President Mark Branson delivered a message of optimism and resilience at the authority’s annual press conference on May 7, 2025. Addressing journalists in Frankfurt, Branson set the tone for Europe’s financial future, underscoring the need for strong institutions, legal clarity, and simplified regulation.

In a year marked by economic challenges and global uncertainty, Austria’s financial sector has shown impressive resilience. The Austrian Financial Market Authority (FMA) 2024 Annual Report paints a picture of a financial system that is not just surviving, but thriving amid the storm. Executive Directors Helmut Ettl and Eduard Müller highlighted how Austria’s banks and insurers managed to weather the storm, with a steady focus on stability and profitability—key pillars for navigating the turbulence ahead.

In his most recent article, Tim Leech explores whether Chief Legal Officers (CLOs), Chief Risk Officers (CROs), and Chief Audit Executives (CAEs) have a legal duty to brief the board on its fiduciary responsibilities related to escalating MCOs and associated risks. By diving into the roles of these executives, Tim Leech highlights their obligations to ensure that boards are well-informed about the risks that need to be managed and monitored to protect the organization.

The world is changing faster than ever, and with it, the landscape of risk and resilience. The 2025 KPMG Risk & Resilience Survey takes a deep dive into how organizations are facing these growing challenges. It clear that the era of “good enough” risk management is over. As risks grow in both size and complexity, companies can no longer afford to rely on outdated strategies. The survey offers crucial insights into what works, and what doesn’t, when it comes to building resilience in today’s fast-paced, volatile world.

The Bank of England has recently launched a consultation to update its approach to how banks and insurers should be managing the risks posed by climate change. The Prudential Regulation Authority (PRA), which oversees financial stability, is refining its expectations on how the sector can stay resilient as climate-related risks intensify. While this isn’t the first time the PRA has addressed the issue, having first issued guidelines back in 2019, the new proposals come as a response to the changing landscape of climate risk, which is evolving faster than many expected.

The world is shifting beneath our feet. From the rising tension between global powers to the rapidly evolving tech landscape, businesses are facing geopolitical risks that feel more real and immediate than ever. These risks no longer sit in the background of boardroom discussions; they’re at the forefront, shaping strategic decisions on a daily basis.

The European Insurance and Occupational Pensions Authority (EIOPA) has released its April 2025 risk dashboards, providing us with a snapshot of the current state of the European insurance and pension sectors. While the data paints a picture of stability overall, the outlook is far from simple. Geopolitical tensions, market volatility, and macroeconomic challenges continue to hover over the industry, creating an air of cautious optimism laced with uncertainty.