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Non-Financial Risks Reshape Banks’ Credit Portfolios

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Non-Financial Risks Reshape Banks’ Credit Portfolios

Boston Consulting Group,

5 Minuten Lesezeit
3 Take-aways
Audio & Text

Was ist drin?

Bankers deal with risks unrelated to traditional financial metrics. 

Editorial Rating

8

Qualities

  • Analytical
  • Well Structured
  • Overview

Recommendation

Financial institutions are increasingly having to deal with external events – like the COVID-19 pandemic – that can engulf their businesses’ operations and bottom lines. Using data collected in a survey of 45 international banking firms, professionals at the Boston Consulting Group assessed the sector’s readiness to manage catastrophic risks from climate change, pandemics, cybersecurity attacks and other issues. Executives, investors and financial stakeholders will find this an astute and authoritative examination of how bankers are taking exogenous risk into account.

Summary

Financial firms are paying close attention to major nonfinancial risks.

Experts estimate that climate change could sap $23 trillion annually from the world economy by the end of the 21st century. This is just one of many nonfinancial risks that can imperil business and stunt economic activity. Environmental, social and governance (ESG) concerns are front and center in the minds of the respondents to a recent global banking survey, as are reputational setbacks, cybersecurity issues, global contagions and natural calamities.

Banking sector executives are taking an increasingly proactive...

About the Authors

Kenneth Wee, Kirill Katsov, Chi Lai and Zubin Mogul are professionals with the Boston Consulting Group.


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