Operational risk management For modern financial institutions Operational risk is not new – it has existed ever since the first bank opened its doors for business. What is relatively new, however, is how modern-day financial institutions manage this risk type. Operational risk management has evolved into a discipline in its

Measurement & reporting basics For operational risk management TEST YOUR KNOWLEDGE Introduction Measuring and reporting operational risk plays a pivotal role in the banking sector. It enables banks to enhance their risk management practices, make informed decisions, maintain regulatory compliance, and ensure stakeholder confidence. Objective vs.

Fossil fuels and net zero – can they ever be compatible? The road to net zero is a complicated journey with multiple diversions, forks, and confusing terrain, not least exemplified by the contention that it can be achieved while actually increasing fossil fuel production. Climate change objectives are typically articulated

Basel III Endgame: US banks to be brought into line with Basel III The announcement of new proposals – referred to as the “Basel III Endgame” – to bring the regulatory capital framework in the United States into line with the final provisions of Basel III is well timed following well-publicized instances of the

ESG backlash gathers pace The recent statement by the CEO of one of the world’s largest asset managers that henceforth he would stop using the ‘weaponized’ term ‘ESG’ is clearly a consequence of a backlash against ESG investing that has been building for years. The issue of environmental, social, and

Credit cycle on the turn “Higher for longer” is a mantra with which observers of the global interest rate regime have been familiar with for some time. As central banks worldwide remain resolved to stay the course of rate rises to counter obstinate inflation, so the effects of ‘normalized’ rates are beginning to bite

What are ferrous metals? Supply and demand, trading, and hedging explained A ferrous metal is any opaque, fusible, ductile, and lustrous substance that is a good conductor of electricity and heat, forms cations by loss of electrons, and yields basic oxides and hydroxides; especially one that is a chemical element as distinguished from an

What are petrochemicals? Petrochemicals – sometimes abbreviated as "petchems" – are a set of chemical compounds that fuel a wide array of products that are integral to modern economies and societies. A petrochemical, in the strictest sense, refers to a chemical manufactured or derived from crude oil and natural gas, as distinct from fuels. Petrochemicals,

What are the different types of commodities? Commodities – and the markets where they are traded – are vital to the proper functioning of a modern economy. This article describes the different commodity groups that are bought and sold globally. Commodities are omnipresent in everyday life, from the food we eat to the homes we

Crude oil explained: What it is and its characteristics Despite the growth in sustainability concerns and the emergence of renewable energy and other green initiatives, crude oil remains central to the functioning of modern economies. It continues to hold the largest share of the world's energy mix and powers most forms of transport through