How should banks manage the strategic risks associated with new regulations and new sources of competition?
Abstract
New capital regulations from the Basel Committee and an overhaul of loan accounting standards are leading to a radically different way of assessing the solvency and performance of banks. At the same time, the bases of competition in banking are shifting rapidly, catalysed by the adoption of new technologies. Banks need urgently to adapt to both these sets of strategic changes to preserve short-term shareholder value while maintaining long-term competitiveness and viability. A range of strategic management actions — including some fundamental changes to the business — can be considered.
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Author's Biography
Adrian Docherty is Managing Director and Head of Bank Advisory at BNP Paribas. He advises banks on strategic financial issues relating to risk management, capital, regulation, performance improvement and competitive strategy. After graduating from Cambridge University, Adrian became a strategy consultant with Booz Allen, and then moved to Barclays as Chief Operating Officer of Investment Banking before joining BNP Paribas. His book Better Banking: Understanding and Addressing the Failures in Risk Management, Governance and Regulation, was published by Wiley in 2014.
Citation
Docherty, Adrian (2018, March 1). How should banks manage the strategic risks associated with new regulations and new sources of competition?. In the Journal of Risk Management in Financial Institutions, Volume 11, Issue 2. https://doi.org/10.69554/PPVA6980.
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