So long as the costs associated with non-financial risk are recognized retroactively, they can be waived off as a "cost of doing business". However, as firms adopt cultural and behavioral metrics to price non-financial risk proactively expectations will shift to forecasting and mitigating them, to the benefit of investors, insurers, regulators, and other stakeholders.
Observations
Aug 27, 2024Last week, the Australian Prudential Regulation Authority (APRA) announced that it had increased the capital add-on applied to ANZ to A$750 million, in response to persistent problems with the bank's non-financial risk management capabilities.
Compendium
Jun 07, 2023Observations
Nov 14, 2022In the wake of severe governance failures like those surrounding the emissions scandal at Volkswagen, the US Public Company Accounting Oversight Board (PCAOB) has pledged to modernize standards that define how auditors should evaluate the risk that public company clients may have broken laws, in the course of vetting their earnings and balance sheets.
Observations
Sep 19, 2022by Richard Spencer, Timothy O'Neill
Compendium
May 15, 2022by Gary Cohn, Keith Noreika, Barbara Novick
Compendium
May 15, 2022by Bob Wardrop
Compendium
May 15, 2022
