Green finance in an IRB world – How can Banks and Regulators cooperate towards more environmentally friendly lending using the capital requirement framework?

olofRisk & Analytics, Sustainability

Background Societies and governments across the world are searching for ways to promote environmentally friendly activities and discourage the environmentally unfriendly. Governments have used direct measures such as carbon taxes and air quality rulings, however their approach to the economy as a whole tends to be more general “nudging” and steering businesses towards achieving society’s aims. All sectors are being … Read More

Jim Gustafsson joins FCG as Partner and Head of Insurance

olofNews, Risk & Analytics

We are pleased to announce that Jim Gustafsson has been appointed Partner and Head of Insurance at FCG and member of FCG’s Group Executive Committee. Previously, Jim has been a long-term Partner at EY in the Nordic region where he held roles such as; Solution Leader Data & Analytics in EMEIA, Head of Nordic Quantitative Advisory Services, FS Advisory Leader … Read More

Accepting the challenge – IRB modelling programmes

olofNews, Risk & Analytics

Banks re-estimating their credit risk models for usage in the Internal Rating Based (IRB) approach are facing vast and complex challenges, investing considerable time, money and management focus during the lifetime of the project. The ambitions for the institutions vary and where one bank may align existing models to new regulatory requirements and expectations, another (bank) may try to address … Read More

Nordic Bank Performance – will the high performing clustering hold true?

olofFinance & Treasury, Risk & Analytics

In an article published in Dagens Industri (2020-10-08, “Nordea het bricka i storspelet – bankbjässar lurar i vassen”) the author, Martin Rex, points out the crowding in the European market and where the average European bank perform worse in comparison to banks on other continents. At the same time Nordic banks are in general viewed as providing high and consistent returns … Read More

Internal governance and the cost of (non) compliance

olofLegal & Compliance, News, Risk & Analytics

In mid-2019 the European Commission published a study on the cost of regulatory compliance for a specific set of financial regulations (see below). The objective of the study was to gain an understanding of the scale and nature of the incremental costs of compliance with EU financial legislation and supervisory reporting since 2008. Removing the one-off costs during the preparation, … Read More

A Brave new World: The governance of IT-risk is now firmly placed in operational risk

olofIT & Cyber Security, News, Risk & Analytics

Basel Committee on Banking Supervision (BCBS) recently published a consultative document for the revision to the Principles for the Sound Management of Operational Risk (PSMOR). On a high level, the principles cover the same topics as before but there are some clarifications and some substantial changes. The substantial changes are foremost related to to what is commonly known as New … Read More