Risk & Resilience

The European Banking Authority (EBA) released its spring 2024 risk assessment report on July 2, highlighting elevated geopolitical risks and economic uncertainties facing EU/EEA banks. The comprehensive report, which for the first time combines the EBA's common risk assessment with analysis of banks' asset encumbrance and funding plans, paints a complex picture of the current banking landscape. This edition marks the resumption of the semi-annual publication of the Risk Assessment Report (RAR), following its common structure but also including the analysis of asset encumbrance and funding plan data, previously published in two separate reports.

In an era marked by geopolitical tensions and economic uncertainty, Europe's insurance and pension fund sectors are demonstrating unexpected resilience, according to the latest Financial Stability Report from the European Insurance and Occupational Pensions Authority (EIOPA).

The Bank of England (BoE) has released its latest Financial Stability Report, providing an in-depth analysis of the current state of the UK's financial system. The report, which highlights the resilience of UK households, businesses, and banks, also underscores the persistent risks that could impact financial stability. For companies, effective risk management remains crucial in navigating these uncertainties.

In today's rapidly evolving business environment, the development of a mature risk and resiliency strategy has transitioned from being an optional consideration to an indispensable necessity for organizational survival and success. This strategic imperative hinges on several critical elements: a profound comprehension of existing and potential threats, a comprehensive understanding of internal operational dynamics, and the adept utilization of state-of-the-art risk intelligence tools.

The Office of the Comptroller of the Currency (OCC) has released its Semiannual Risk Perspective for Spring 2024, identifying several critical issues facing the federal banking system. Despite the overall stability of the banking system, the OCC warns that a maturing economic cycle could bring significant consumer challenges. To mitigate these risks, the OCC urges banks to enhance their risk management practices and avoid complacency.

The European Securities and Markets Authority (ESMA), the EU's financial markets regulator, has released its Annual Report for 2023, detailing key achievements in implementing its new 5-year strategy aimed at enhancing investor protection and promoting stable financial markets across the European Union.

The Australian Prudential Regulation Authority (APRA) has released its finalized prudential practice guide aimed at strengthening operational risk management and business continuity planning for banks, insurers and superannuation trustees.