Global Risk Indicators

Since the financial crisis of 2008, financial services firms have advanced their internal credit risk management capabilities as part of a substantial evolution in risk management among regulators, accountants and asset managers, whose views on risk management approaches have converged over time. Regulators and accounting standard bodies expect that asset managers have controls and processes in place to identify, assess, monitor, and control risks – particularly credit risks.  Worldwide, regulators have significantly increased risk management needs and capital requirements for regulated financial services entities. For example, the Basel Committee on Banking Supervision made sweeping changes to capital requirements with the issuance of Basel III in late 2010, to strengthen micro prudential regulation and supervision, and add a macro prudential overlay that included additional capital buffers. EU and U.S. regulators have also strengthened their oversight of asset managers (e.g....