In an increasingly interconnected world, the impact of geopolitical risks on financial institutions has become a pressing concern. This publication explores the integration of these risks into risk management frameworks, emphasising the need for a structured approach to ensure resilience in the face of uncertainties such as wars, terrorism, and political tensions. Geopolitical fragmentation poses significant threats to global economic stability, particularly for banks with exposure to high-risk countries. It's crucial for financial institutions to enhance their governance frameworks by incorporating geopolitical considerations into their risk assessments, capital adequacy tests, and liquidity planning.
Key geopolitical influences, including the ongoing Russia-Ukraine conflict, Middle East crises, and US-China tensions, contribute to market volatility and operational risks. To navigate these challenges effectively, banks must leverage scenario analysis and stress tests based on validated expert insights and historical trends. Regular reviews and expert consultations will help maintain the relevance of these scenarios.
This publication advocates for financial institutions to adapt their strategies, ensuring that they are well-equipped to handle the complexities introduced by geopolitical dynamics. By prioritising the integration of these risks into their governance structures, banks can better safeguard their stability and compliance in an evolving landscape.
Download the publication to learn more.
If you need any help or assistance, please feel free to contact us.
Key geopolitical influences, including the ongoing Russia-Ukraine conflict, Middle East crises, and US-China tensions, contribute to market volatility and operational risks. To navigate these challenges effectively, banks must leverage scenario analysis and stress tests based on validated expert insights and historical trends. Regular reviews and expert consultations will help maintain the relevance of these scenarios.
This publication advocates for financial institutions to adapt their strategies, ensuring that they are well-equipped to handle the complexities introduced by geopolitical dynamics. By prioritising the integration of these risks into their governance structures, banks can better safeguard their stability and compliance in an evolving landscape.
Download the publication to learn more.
If you need any help or assistance, please feel free to contact us.