Rewiring compliance
Connecting governance, risk and compliance
Financial operations always engender complex risks and tested for sustainability these risks are now growing. Complexity itself is growing, as regional sustainability demands proliferate and potential contradictions multiply.
Meanwhile, sustainability re-prices assets, operations and relationships. Financial services organisations need to review the extent to which they may be building exposure to financial sustainability risks that are material to current compliance and future viability. True compliance means forecasting, measuring and pricing these risks, in detail and at a global scale, and in the wider context of robust governance.
Time to rethink risk and reporting:
Establish appropriate oversight for your ESG priorities, including improving board insight and effectiveness.
Profile, measure, manage and report on ESG risks across operations.
Integrate financial sustainability risks into your enterprise-wide risk management frameworks.
Design and implement a common risk infrastructure: the mission is to leverage talent and technology for transformation.
Determine and assess your reporting and compliance with ESG legal requirements, company policies and industry codes; prioritise remedial action in both strategy and operations.
Employ scenario analysis and stress testing to evaluate your exposure and resilience in an ambitious range of socioeconomic and climate challenges.
Related links
Accelerating ESG in Capital Markets
The impact of COVID-19
Climate change
Still on the banking agenda
Turning up the heat on banks
The ECB’s Climate and Environmental Risk Guide
Climate-related financial risks
Turning aspiration into action
ESG - The impact to advisors and the suitability process
The background, considerations and process
EC adoption of delegated acts on new ESG disclosure requirements
Benchmark administrators and minimum standards for EU Climate Benchmarks
Environmental, Social, and Governance (ESG) Bonds
Climate risk & your 2021 ICAAP
Regulated Radio podcasts
Episode 20: How investment managers are handling ESG regulation