New risk in a time of uncertainty and change
The years since the global financial crisis have seen a wave of regulatory change that increased both the scope and the stringency of regulatory requirements. New legislation and regulations have included the Dodd-Frank Wall Street Reform and Consumer Protection Action (Dodd-Frank Act) in the United States, Basel 2.5 and III, the US Federal Reserve’s Enhanced Prudential Standards (EPS), the European Market Infrastructure Regulation (EMIR) and Solvency II capital standards. In the years since the global financial crisis, financial institutions have had more time to understand the practical implications of these new regulations and what is required to comply.
Today, risk management is becoming even more important; financial institutions confront a variety of trends that have introduced greater uncertainty than before into the future direction of the business and regulatory environment. Economic conditions in many countries continue to be weak, with historically low interest rates. The UK referendum to leave the European Union (Brexit vote), coupled with US President Donald Trump’s pledge to renegotiate trade agreements with China and Mexico, raise the possibility that trade volumes may decline.
Performance magazine issue 24, September 2017
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.