Making the system resilient in a new age of financial services

October 2019

“We are ten years out and it’s not entirely clear to me that people learned the lessons they needed to the last time. Have we really done all that we need to do to understand the risks we are taking on? Have we done enough in the non-financial risk area to understand whether we are going to be resilient going forward?” β€“ Summit participant

These questions were posed by a participant in the 2019 Financial Services Leadership Summit; they represent some of the core matters for discussion on the 16th and 17th of October in Washington, D.C. Participants from the Bank and Insurance Governance Leadership Networks – directors, executives, regulators, and other subject matter experts – will meet to discuss how to make the financial system resilient to a range of evolving risks.

More than ten years after the global crisis, the financial services business has changed. Large institutions have shored up capital and liquidity, new rules have been implemented, and supervision has tightened. Yet, business models have also changed, and new models are emerging, as incumbents and fintechs adopt advanced technologies and large tech companies wade into financial services. New risks are moving up the agenda for the leaders and boards of financial institutions; some of these risks could have systemic implications. Operational, technological, and geopolitical risks remain challenging to measure and monitor. Firm leaders and regulators are working hard to understand and anticipate the second- and third- order effects to institutions and the system.

At the summit, participants will discuss questions including: How effectively have policymakers, regulators, and financial institutions addressed the risks that triggered the last crisis? What risks might trigger a future crisis? With the prospect of a global recession looming, we will consider the dimensions of risk that could stress the financial system and how financial institutions and their regulators are working to mitigate their impact.

This PreView is organized into the following sections:

  • Economic and monetary policy may be exacerbating risk in the system
  • Regulatory reform and response: looking back and ahead
  • Could technical and operational risks trigger the next crisis?
  • Disruption of traditional business models
  • Climate change and other exogenous risks move up the agenda