The Risk Management Challenges Faced by Global Banks

The overwhelming top of mind –issue is regulatory uncertainty. The top risk management and control challenges faced today by the company leaders will be discussed elaborately later. The challenges which need to be discussed or which need a probe into are – • Dealing with regulatory uncertainty – Multiple regulatory proposals complicate planning as banks anticipate systemic reform • Anticipating new capital requirements – Stricter regulatory proposals are driving banks to reallocate capital , rebalance portfolios and rethink market strategies • Shifting the risk culture – Banks are strengthening their risk culture and governance processes with more senior management involvement and invigorated risk procedures • Navigating the Fluid economy – Uncertainty about the economy poses a challenge to long – term and short- term planning • Repairing the balance sheets – Many banks are still dealing with fallout from the economic crisis