Latest Insights

The case for a forward-looking approach in savings modeling

A key challenge for risk modelers is to assess whether the available historical data is representative for the (near) future. This determines to a large extent whether a more backward-looking or a forward-looking approach is needed.

Climate change risk

The pivotal role of banks in the transition to a sustainable economy

Amidst the aftermath of the corona pandemic and the unfolding tragedy in Ukraine, the Intergovernmental Panel on Climate Change (IPCC) published its latest report1 on climate change on 28 February 2022, containing a more alarming message than ever before.

Impact of EU Sustainable Finance Action Plan on Risk Management

Round-table Summary Article

Learning to manage sustainability risks has been one of the key challenges for financial organizations. This topic is gaining momentum because of the European Commission’s Sustainable Finance Action Plan and associated regulatory changes.

Challenges to Treasury’s role in commodity risk management

Defining the challenges that prevent increased Treasury participation in the commodity risk management strategy and operations and proposing a framework to address these challenges.

The ECB 2022 climate risk stress test started

This is the first time that the European Central Bank (ECB) has selected climate risk as topic for its 2022 annual supervisory stress test, which is part of the Supervisory Review and Evaluation Process (SREP). In October, the ECB published the outline and main characteristics of this stress test. This article summarizes the main methodology outlined by the ECB.