Risk Management
HKMA deputy says credit risks to remain ‘complex’ in 2026
Yuen notes continued pressure on Hong Kong’s commercial real estate market
Vast majority of central banks taking action on climate risk
Nearly one in five banks reflect climate risk in reserves management and collateral eligibility
Risk management reviews are most common assessment method
Centralised teams are less likely to conduct external or management evaluations
UK’s Orange Book risk approach rarely used by central banks
Only three centralised risk management departments utilise principle
Privacy and security seen as top AI risk
Most risk managers more relaxed about potential financial losses caused by AI
Benchmarks data reveals AI use gap in risk management
Central banks from the Americas are most concerned about deepfakes, data shows
Staff error is largest cause of op risk at central banks
Legacy systems tend to trigger most threats in jurisdictions with greater than average number of incidents
Op risk incidents average over 100 a year among central banks
Financial impact is risk managers’ strongest metric for gauging incidents’ severity
Phishing and ransomware are central banks’ main cyber threats
Teams widely use training, monitoring and privilege management to mitigate cyber threats
Just under half of risk departments are sufficiently staffed
Units with satisfied staffing levels earn below global average annual salary
Mitigation and reporting are leading components of risk strategy
Decentralised teams more likely to embed philosophy in divisional decision-making
Most centralised risk teams prioritise cyber security
Decentralised teams primarily cover credit and counterparty, op and market risks
Risk policies widely reviewed by committee in larger teams
Central banks with larger teams favour risk committees over CROs
Middle income central banks have highest number of risk staff
But ratios of risk management employees to total headcount vary widely
BIS points to ‘structural transformations’ in markets
Quarterly review cites higher volatility and gold losing its status as a safe haven asset
Chief risk officers: a critical function or a distraction for central banks?
Institutions are divided on whether the role is needed, but it is becoming more common
Hedge funds scale back steepener positions as risks rise
Uncertainties around US Treasury issuance and timing of Fed rate cuts see investors trim ‘consensus’ trade
Risk Management Benchmarks 2025 – model banks analysis
Drilling into the data reveals patterns in risk prioritisation and department structure
Risk Management Benchmarks 2025 – executive summary
The benchmarks reveal an ongoing focus on cyber risk, but climate and AI risks are rising fast
Risk Management Benchmarks 2025 report – mind the techno-political gap
Responses show central banks’ shifting priorities as volatility increases