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
May 22, 2023In a recent Financial Times article, Evgueni Ivantsov, Chairman of the European Risk Management Council, argued that, while the collapses of Silicon Valley Bank (SVB) and Credit Suisse appear to be very different on the surface, the root cause for each was toxic culture and mismanagement of strategic risk.
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, 2022Observations
Aug 25, 2021European bankers soon will need to show that they are contributing to a cleaner environment, a better society, and good governance. In another sign that ESG is reshaping finance, most of the 20 major European banks recently surveyed by Bloomberg said that they were either working on, or already had, a model that links staff remuneration to a firm’s performance on sustainability metrics.
