What is the Sustainable Finance Disclosure Regulation? In March 2021, the European Union's Sustainable Finance Disclosure Regulation (SFDR) came into force. The SFDR is designed to help institutional asset owners and retail clients understand, compare, and monitor the sustainability characteristics of investment funds by standardizing sustainability disclosures. Under the SFDR, firms must make

What is a Risk Management Framework? An overview of key components TEST YOUR KNOWLEDGE Introduction A risk management framework (RMF) or more specifically, an operational risk management framework (ORMF) is a structured and systematic approach used by organizations to identify, assess, prioritize, and manage risks in order to

The ultimate guide to operational risk management Navigating the ORM process TAKE THE SKILLS ASSESSMENT Introduction Operational risk management (ORM) is a crucial aspect of any business, helping organizations identify, assess, and mitigate risks associated with their day-to-day operations. By understanding and effectively managing operational risks, businesses can

Understanding banking regulatory requirements For operational risk management TAKE THE SKILLS ASSESSMENT Introduction Operational risk management is a critical aspect of the banking industry, aimed at identifying, assessing, and mitigating risks associated with internal processes, people, and systems. In order to promote stability and resilience within the banking

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