Resolutions for 2018... ‘for your eyes only’

27/12/2017

 

CEO's Notes



For Your Eyes Only (1981) - United Artists

 

The European Banking Federation has recently published the regulatory themes which should be of strategic interest to banks in 2018. To a large extent they continue on the themes of 2017. There’s the Risk Reduction package of legislative reforms, IFRS 9 transition, Market Risk challenges and a number of ‘Gone Concern’ themes, such as Non-Performing Loans, engagement into the Single Resolution Mechanism, review of the BRRD and EDIS (European Deposit Insurance). Supervisors will also be looking at continuing the SSM Boardroom Dialogue and the next Stress Testing exercise due for launch early in the new year. An agenda loaded with focus on mitigation of … Risk!

In Greece there is a group of rock pillars – Metéora - at the very top of which several monasteries were built centuries ago. They are quite hard to reach and until the 1920s one could only get there by sitting in a basket which the monks then pulled up with a rope. Nervous tourists would be reassured that the rope, which looked quite old and frayed, was replaced “… whenever it breaks.” Hardly sensible risk management! One of the monasteries famously served as a location for the James Bond movie ‘For your eyes only’, which inevitably involved some stunts. Roger Moore’s confessed fear of heights caused the really dangerous scenes to be performed by professional stuntman Rick Sylvester. The stunts were very carefully and safely prepared by Sylvester’s team. The movie was a box-office success, with prudent risk management playing a hidden but vital part of the final result.

Serious risk oversight complements regulation so that this can be maintained in the right doses. Preferably shaken, not stirred.

All the best for 2018.

 

 

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