Regulatory alignment and what the future holds

Regulatory alignment and what the future holds

By Philip Best, Wealth Chief Risk Officer, Barclays Wealth and Investment management. 

Philip, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?

I started out in the ‘80’s as a Chemical Engineer, quickly moving on to become a programmer in Finance – never looked back since. Transitioned into Risk in the early ‘90’s when market risk was brand new and Operational Risk didn’t exist!. Currently Global CRO for Barclays Wealth, which is a diverse an interesting business. These days the role of CRO is as much about helping to manage the business as the classic risk disciplines – challenging but also rewarding.

At the Risk EMEA 2018, you will be discussing the impact of regulation and managing regional fragmentation – Why is this a key talking point in the industry right now?

The natural outcome of the global fragmentation is to go back to the situation pre-crisis, in which local regulatory knowledge and experience is key.

Since the Financial Crisis, regulation has been a major driver of risk, in fact of the whole industry – so any potential divergence of global regulators is going to be of interest. Overall since the crisis there has been strong regulatory alignment globally, as the crisis passes and the main regulatory upgrades have been implemented it is natural that countries will start to take back the regulatory agenda and focus it on domestic issues and priorities.  For a global organization this presents new challenges as regulatory regimes will begin to diverge.

What regulatory challenges do you foresee in the future? And have you got any advice for your peers on how to best handle them?

I expect that over the course of the next decade that the tsunami of post-crisis regulation will become part of the woodwork and that some of it will be rolled back.  This sounds good but financial institutions must remember that one of the reasons they got into trouble in the Crisis was because their ability to impose effective self-controls was poor.  If the regulatory framework is weakened then this will inevitably give an increased scope for future crises. It will always be difficult for a single organization to say “no” to business when the rest of the street is gung-ho, this herd behavior is intrinsically dangerous.

 

Hear more from Philip at the 7th Annual Risk EMEA Summit. Will you be joining us?…