Reassessing and mitigating financial risks in uncertain times
The current Covid19-triggered financial crisis is severely impacting businesses and financial institutions around the world. Risk Managers at banks are working hard trying to evaluate the potential financial impact on the overall economy and on their loan portfolios.
In this webinar you will hear the key elements that banks should consider when applying their financial risk management processes in the current challenging and stressful times.
In order to identify best course of action, banks have to analyze the financial impact of the alternative future evolution paths and macro-economic scenarios, and assess the impact of their potential risk mitigation actions. As new insights arrive almost daily, so does increase also the need for banks to frequently reassess the impact of these changing alternative future scenarios on the economy and on their loan portfolios. A particularly painful area for banks are the Loan Loss Provisions calculations according to the new forward-looking impairment regimes IFRS 9 and CECL. Both regimes have been designed as a response to the 2008-2009 financial crisis with the objective to capture the risks on the horizon much earlier in the bank’s financial statements.
On top of that, the climate change risk presents financial institutions with yet another but similar set of challenges, however with a much longer time to the horizon.
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