August 29th, 2017 at 5:37 am UTC · 2 min read
Risk management in banking had to overcome many changes in past years mainly in response to regulations that emerged from the global financial crisis. And there are still new challenges ahead, risk management will experience an even more extensive change in the next decade.
GLC Europe a pioneer in the Production and Management of Interactive and Impactful Global Corporate Conferences, is organizing the ‘Risk Zone 2017’, the 7th Annual Risk Management Forum in Vienna on 14th & 15th September 2017 which will provide the opportunity to discuss the impacts from Basel IV and the efficient implementation of Fundamental Review of the Trading Book (FRTB).
After Basel III went into effect, the Basel Committee wanted to revisit transparency and consistency in risk measurements across approaches, jurisdictions, and banks. As a result, ‘Basel IV’ was introduced. It is how detractor banks describe the second wave of proposals, as these came later and somewhat unexpectedly, unlike the Basel III draft rules.
The current state of the suggested ‘Basel IV’ changes would rework the approach to Risk-Weighted Assets (RWA) and possibly internal ratings, as well as set regulatory capital floors. According to analysts, if banks do nothing to mitigate their impact, these rules will require about €120 billion in additional capital, while reducing the banking sector’s return on equity by 0.6 percentage points. This is a game changer for the European banking industry.
However, the proposed rules from international banking regulators are intended to make banks safer and prevent another financial crisis requiring bailouts with taxpayers’ money, as happened in 2008. These sweeping reforms for banks across the world are on the cusp of being finalized whilst some banks don’t like those rules. Meanwhile, some EU politicians have very publicly denounced proposals from the Basel Committee on Banking Supervision. They claim that banks in the bloc would be put at a competitive disadvantage if the proposed rules are enforced in their current form.
This year the 7th Annual Risk Management Forum will provide opportunities for attendees to listen to insights, guidelines, practices from regulatory bodies, leading industry associations and banks/central banks. During the event participants will hear about the latest regulations, impacts of IFRS 9, Stress testing practices, developments in risk measurement and much more topics on board. Further details of the event could be obtained by logging into https://glceurope.com/risk-zon
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