In an environment characterised by Environmental, Social, and Governance (ESG) considerations and the pressing challenges of climate change, the roles of front office and enterprise risk functions within financial organisations have taken on a profound new significance. These functions stand at the nexus of opportunity and responsibility, entrusted with navigating the complexities of ESG integration and climate change mitigation.
The evolving regulatory landscape, epitomised by the PRA’s SS3/19 and the evolving DP/CP rules, further underscores the importance of integrating ESG considerations into risk management practices, marking a paradigm shift in risk assessment methodologies.
This whitepaper delves into the dynamic interplay between the front office and enterprise risk functions, exploring how collaboration, data-driven insights, and strategic alignment are pivotal in addressing the multifaceted challenges posed by the ESG landscape.
In the era of ESG and climate change, financial organisations must rise to meet multifaceted challenges across their front office and enterprise risk functions. By recognising the importance of incorporating ESG factors into investment decisions and implementing robust risk management strategies, these organisations can not only adapt to the changing landscape but also thrive in it.
Collaboration between these functions, supported by advanced data systems and analytics capabilities, will be key in successfully navigating the complexities of ESG integration and climate change mitigation. As organisations embrace their roles as responsible stewards of both financial and sustainable performance, they pave the way for a more resilient and inclusive future.
Contents
- Front Office and Enterprise Risk Functions
- Front Office Challenges
- Enterprise Risk Challenges
- Adapting to PRA SS3/19 and Evolving DP/CP Regulations
- Credit Risk Management: Integrating ESG Factors
- Calibrating Models
- Thriving in the ESG Era
