Articles and Comment Letters
Featured Article
Climate Risk Management at Financial Firms: A Good Start, But More Work to Do
How are firms measuring and managing the financial risks associated with climate change? GRI recently conducted a global, cross-sectoral survey on climate-related financial risks through the lens of governance, strategy, risk management, metrics and scenario analysis, and now presents the results in a comprehensive report.
Article
Climate Risk Management at Financial Firms: Challenges and Opportunities
Over the past five years, the treatment of climate risk at financial institutions has changed significantly. Whereas it used to be viewed strictly as a reputational risk, many firms and regulators now see it as a financial risk that needs to be integrated into existing risk management frameworks. How has regulation evolved, and what climate-related risks and opportunities do risk managers need to consider?
Articles
Building Operational Resilience:
The Critical Need to
Learn from Failure
Three distinct points of view are presented on turning lessons learned from failures into the building blocks of an organization's resilience. These include a review of cross‐industry insights, guidelines for effective incident reporting and perspective on the connection between culture and misconduct. As threats have grown increasingly complex, firms must anticipate, prepare for and learn from operational failure.
Article
A Code of Practice for Supervisory Stress Tests
The quality of supervisory stress tests could be significantly improved through international agreement on a common framework. While not all aspects of stress testing should necessarily be harmonized, there are elements that would benefit both supervisors and banks, reducing the costs involved, improving the quality of the outputs and making the Basel Principles on Stress Testing more achievable.
Article
Model Risk Management at the Crossroads:
Meeting New Demands
with Limited Resources
The number of models used by financial firms has risen significantly. This reflects many factors, such as regulatory requirements and the opportunities offered by advanced analytics to improve firms’ performance. Models are used to address a wide range of issues, from meeting regulatory requirements to identifying potential new customers and more.
Comment Letter
GARP Risk Institute (GRI) Response to BCBS Consultation on Stress Testing Principles
The revised Stress Testing Principles offer a more streamlined approach than the original one. The updated principles are sensible and comprehensive, and they provide a guide to both banks and authorities on how to implement stress testing regimes that add meaningfully to risk management.
