Risk professionals have been forced to adapt to and deal with several changes in the industry since late 2019, the time when coronavirus started spreading.
The Covid-19 pandemic “Deprioritized Regulatory Compliance” and redirected risk management in the financial landscape in the following directions:
Private risk management will increasingly fill the void left by governments.
Private risk management will expand and broaden in 2022, partly because of the ramifications of the pandemic. While government vaccine mandates are unlikely to be imposed in many countries due to legal challenges, individuals choosing not to receive a COVID-19 vaccine may see their health insurance premiums rise to reflect the likelihood that they will require hospitalization or costly medical treatment.
Long-term risks will be translated into short-term threats and opportunities.
Risk managers will be tasked with translating longer-term threats into short-term opportunities for businesses and policymakers. For example, households may have difficulty incorporating the uncertain cost of carbon emissions today on the lives of people three or four generations from now. However, with respect to air quality and reduced illness, they can appreciate the immediate benefit of switching from coal to less polluting energy sources. The most successful CEOs, CROs and other risk managers will be those who can translate a long-term vision into a series of short-term actions with clear, immediate payoffs.
People from all walks of life will become more adept at understanding risk and probability concepts.
In the future, widespread probabilistic thinking will lead to more fruitful discourse and better decision making. Demand for people who can speak the language of risk and translate it for others will only increase over time.
Artificial intelligence and machine learning will complement human judgment and simpler modeling techniques – but will not replace them.
Risk managers will look to diversify the number and types of models they use, to get a broader perspective on the likelihood of default and loss severity. Machine-learning models will take on a larger role, as firms look to incorporate more timely data in their risk assessments.
Risk managers will focus on cultivating organizational resilience, rather than mitigating specific risks.
In the next phase, financial institutions will focus on developing data and tools to better assess interrelationships and dependencies across firms, customers and industries. We already see this happening, as businesses focus on their supply chains and lenders look to gain of a better understanding of their customers (KYC). Increasingly, to ensure firms can navigate whatever threats emerge, risk managers will need to understand both indirect and direct threats. Moreover, they’ll need to develop risk mitigation plans that focus on organizational structure and linkages.
This forum aims to achieve a balance between scientific theory and practice, with a focus on all major emerging methodologies in line with international best practices and regulatory requirements. This forum will also provide banks and regulatory authorities with a platform to learn from practical examples of how to move flexibly to implementing the new regulatory requirements.
Objectives:
On completion of this Forum, participants will be able to have a clear, proper and practical understanding of the following topics:
The main components and definition of regulatory capital and risk weighted assets;
The improvements brought to the treatment of credit risk;
The enhancements brought to the treatment of operational risk;
The implementation of the leverage ratio surcharge introduced for the largest Banks;
The implementation of the risk-sensitive output floor; and
The new implementation timetable.
Who should attend?
Regulatory Authorities;
Risk Managers and senior staff in Banks;
Financial Controllers and Financial Managers and senior staff in Banks;
Treasurers and Capital Markets Managers and senior staff in Banks;
Internal Auditors and senior staff in Banks;
External Auditors and their main assistants.
Main topics to be covered
Cyber security challenges
Resilience within Coronavirus
How to manage digital transformation risks in banks
Green finance implications and risks
High risks that banks might face in 2022
The effect of monetary policies developments on our economies
Supply chain risk
AML and counter-terrorism financing risks
Revisions to the standardized approach for credit risk to enhance the regulatory framework
Internal ratings-based approaches for credit risk;
Background:
Risk professionals have been forced to adapt to and deal with several changes in the industry since late 2019, the time when coronavirus started spreading.
The Covid-19 pandemic “Deprioritized Regulatory Compliance” and redirected risk management in the financial landscape in the following directions:
Private risk management will expand and broaden in 2022, partly because of the ramifications of the pandemic. While government vaccine mandates are unlikely to be imposed in many countries due to legal challenges, individuals choosing not to receive a COVID-19 vaccine may see their health insurance premiums rise to reflect the likelihood that they will require hospitalization or costly medical treatment.
Risk managers will be tasked with translating longer-term threats into short-term opportunities for businesses and policymakers. For example, households may have difficulty incorporating the uncertain cost of carbon emissions today on the lives of people three or four generations from now. However, with respect to air quality and reduced illness, they can appreciate the immediate benefit of switching from coal to less polluting energy sources. The most successful CEOs, CROs and other risk managers will be those who can translate a long-term vision into a series of short-term actions with clear, immediate payoffs.
In the future, widespread probabilistic thinking will lead to more fruitful discourse and better decision making. Demand for people who can speak the language of risk and translate it for others will only increase over time.
Risk managers will look to diversify the number and types of models they use, to get a broader perspective on the likelihood of default and loss severity. Machine-learning models will take on a larger role, as firms look to incorporate more timely data in their risk assessments.
In the next phase, financial institutions will focus on developing data and tools to better assess interrelationships and dependencies across firms, customers and industries. We already see this happening, as businesses focus on their supply chains and lenders look to gain of a better understanding of their customers (KYC). Increasingly, to ensure firms can navigate whatever threats emerge, risk managers will need to understand both indirect and direct threats. Moreover, they’ll need to develop risk mitigation plans that focus on organizational structure and linkages.
This forum aims to achieve a balance between scientific theory and practice, with a focus on all major emerging methodologies in line with international best practices and regulatory requirements. This forum will also provide banks and regulatory authorities with a platform to learn from practical examples of how to move flexibly to implementing the new regulatory requirements.
Objectives:
On completion of this Forum, participants will be able to have a clear, proper and practical understanding of the following topics:
Who should attend?
Main topics to be covered
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