Staying ahead of the game - safeguarding for the future
Looking forward to the end of the year, it is unfortunate to state that the Covid crisis is still a huge part of our lives, and with this comes the expanding impact on the global economy. True, a few sectors have done well under lockdown conditions but they have been the exception. It has been suggested that by the time this crisis is over, it could, through the destruction of the economy, cause much more harm to the financial system than the 2007 financial crisis, with talk of a V-shape recovery becoming muted. The future is somewhat unknown, and with no vaccine, the virus will continue to change the world we know.
The financial sector
One particular sector which has weathered the storm is banks and other financial intermediaries. They did this by being quick to react and adjust to the new business environment. An environment that requires more attention to liquidity management, conducting business over a long distance, and offering more time and support to their clients.
However, the real test will come when the debt moratorium ends. Banks will need to have a clear picture of the outlook of their clients and their new risk profile. "
Brexit in the background
There is also no forgetting Brexit, rearing its head in the background of the pandemic. While we wait for a negotiated deal, the outlook is still concerning, as things will not be the same for most businesses moving forward. A new normal and a new kind of relationship with the EU requires a full-scale reassessment of risk. Banks and other financial intermediaries will need to upgrade their risk management systems, just like they did post the 2007 financial crisis. Like before, banks that stay ahead of the game will emerge as clear winners.
Safeguarding for the future
- Risk - when the ceiling has been lowered on the revenue front, it makes sense for banks to focus their attention on risk, and to put in more efforts to minimise foreseeable loss. Among other things, banks will want to recalibrate their credit risk models, taking into account the varied impact of Covid on all the economic sectors.
- Credit quality - financial institutions will need to reassess the credit quality of their clients after they emerge from the crisis; paying particular attention to those in sectors that had been more exposed to the fall out. New data and assumptions will have to be incorporated into the model in order to determine EBITDA, free cash flow and costs.
- Technology - This will, of course, play an important role in risk management. Banks will employ new technologies to help manage operational risk, credit risk as well as market risk. If the 2007 crisis is any indication of things to come, a lot of hard work will have to be put into the management of credit and operational risks, employing new technologies to monitor banking operations, review data and reconfigure risk models.
Talent insight
For now and for a long time to come, talented risk managers and professionals are what banks will continually need - people with the right set of skills and experience. Unfortunately, the talent pool of risk managers has not been expanding in line with the new demand.
Over the past decade as regulatory demands were on the rise, becoming increasingly more complex, no meaningful efforts were made to attract more talented people into the field of risk management. This has led to a shortage of skilled risk managers even before the emergence of the pandemic. Given the urgency of our current climate banks will not have the time to train people and will need to recruit. This is where we come in, if you're a professional within risk, please get in touch now.
Signup to receive the latest discipline specific articles
Related jobs
Salary:
£90,000 - £110,000 per annum
Location:
City of London, London
Industry
Investment Banking & Capital Markets
Qualification
Fully qualified
Market
Financial Services
Salary
£100,000 - £125,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Minimise the Bank's credit-related losses by identifying and reasonably measuring the credit risks and mitigants in proposals, reviews etc.
Reference
BBBH184420
Expiry Date
01/01/01
Author
Andrew BarnesAuthor
Andrew BarnesSalary:
+ benefits
Location:
London
Industry
Private Equity
Qualification
Fully qualified
Market
Financial Services
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Fund Controller - Private Credit - Hybrid An excellent role working for a strong player in the Private Credit Fund sector, looking to hire a Fund Controller due to growth of their business.
Reference
BBBH183574
Expiry Date
01/01/01
Author
Paul RocheAuthor
Paul RocheSalary:
£45,000 - £50,000 per annum
Location:
Rotherham, South Yorkshire
Industry
Business Services
Qualification
Finalist / Newly qualified
Market
Professional Services
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Newly Qualified Finance
Contract Type:
Contract
Description
Financial Reporting Accountant (Immediate Start) - Up to £50k!
Reference
BBBH184416
Expiry Date
01/01/01
Author
Haroon HussainAuthor
Haroon HussainSalary:
£35,000 - £45,000 per annum
Location:
Bristol City Centre, Bristol
Industry
Business Services
Qualification
None specified
Market
Financial Services
Salary
£40,000 - £50,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Pensions Administrator, 6-9 months, Bristol, £35-45K
Reference
BBBH183989
Expiry Date
01/01/01
Author
Carol JonesAuthor
Carol JonesSalary:
£70,000 - £80,000 per annum
Location:
Yorkshire and the Humber
Industry
Business Services
Qualification
None specified
Market
Professional Services
Salary
£80,000 - £100,000
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
6 Month FTC to implement Anaplan - remote
Reference
NH - 184406
Expiry Date
01/01/01
Author
Niamh HellewellAuthor
Niamh HellewellSalary:
£400 - £475 per day
Location:
Hatfield, Hertfordshire
Industry
Manufacturing
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£350 - £450
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
Interim Group Accountant for growing PE-backed business
Reference
BBBH184407
Expiry Date
01/01/01
Author
Subhaan MalikAuthor
Subhaan MalikSalary:
£400 - £450 per day
Location:
London
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£350 - £450
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
Interim Finance Manager for growing luxury retail brand
Reference
BBBH184394
Expiry Date
01/01/01
Author
Subhaan MalikAuthor
Subhaan MalikSalary:
£30,000 - £35,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£35,000 - £40,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Credit Controller in Horsforth!
Reference
BBBH183469
Expiry Date
01/01/01
Author
Cameron WalshAuthor
Cameron WalshSalary:
£35,000 - £42,000 per annum
Location:
Harrogate, North Yorkshire
Industry
Business Services
Qualification
Part qualified
Market
Commerce & Industry
Salary
£40,000 - £50,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
I am delighted to be partnering with a dynamic and fast-paced company located in Harrogate to recruit an ambitious Assistant Management Accountant.
Reference
184160
Expiry Date
01/01/01
Author
Laura GunbyAuthor
Laura GunbySalary:
£350 - £400 per day
Location:
Stockport, Greater Manchester
Industry
Manufacturing
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£350 - £450
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
Interim Group Reporting Manager | Stockport | Up to £400 per day | Immediate Start | Outside IR35
Reference
BBBH184392
Expiry Date
01/01/01
Author
Jamie MillerAuthor
Jamie Miller