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By Max MALONUKHIN, Senior Manager Thibault THOMAS, Associate Partner, Avantage Reply
The geopolitical environment has become an increasingly disruptive factor for global financial institutions. Banks are now operating in a world marked by war in Europe, escalating Middle East tensions, decoupling of major economies, energy and food insecurity, sanctions volatility, and cyber warfare. All these factors contribute to geopolitical risks being not only a concern for government departments - it is an enterprise risk with board-level implications for the financial services industry.
Despite this shift, banks continue to struggle with how to measure and manage geopolitical risk. There is no widely accepted methodology for quantification,...
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