Name: Exploring the future of regulatory compliance and sustainability
Uploaded: 2024-10-09T17:24:02.264Z
Duration: 242.34
Description: Adam Ennamli, Chief Risk Officer at the General Bank of Canada, discusses the key risks that keep him awake at night, including economic volatility, technological dependencies, regulatory compliance, and operational resilience. He emphasizes concerns about how these risks may evolve by 2025, particularly in balancing financial and non-financial risks.

RMA.INT.02 - Ennamli.mp4

RMA.INT.02 - Ennamli.vtt

English

{{00:00:04}}
Adam, thank you so much for joining
me at RiskMinds Americas this year.

{{00:00:07}}
Tell me what keeps you awake at night?

{{00:00:09}}
What risks keep you awake at night?

{{00:00:10}}
There are a lot, but I would
start with the economy.

{{00:00:13}}
The economy and how volatile it is.

{{00:00:15}}
And what we're seeing in the market.

{{00:00:17}}
We see changes in interest rates.

{{00:00:18}}
We see a movement of wealth.

{{00:00:21}}
We see consumer behavior changing, right?

{{00:00:23}}
That can lead to credit losses to a
lot of events where we have defaults.

{{00:00:28}}
And That's basically the first thing,
like the macroeconomic environment

{{00:00:31}}
and how it's going to affect all
the other domains, basically.

{{00:00:35}}
The other part is technology.

{{00:00:38}}
We are more and more reliant
on technology, so that

{{00:00:40}}
increases the attack surface.

{{00:00:41}}
And that creates more and more
opportunities for threat actors to

{{00:00:46}}
basically steal data and basically
use it for malicious purposes.

{{00:00:53}}
Third thing is regulatory compliance.

{{00:00:55}}
You have regulators who are
issuing guidelines, notices, but

{{00:00:59}}
you also have industry standards
who are evolving with technology.

{{00:01:02}}
We gotta comply, we gotta follow, right?

{{00:01:05}}
And that's basically a
balance that you need to keep.

{{00:01:08}}
And finally, you have the operational
resilience, which is basically when things

{{00:01:11}}
go wrong, how fast do you get back in
the game and how fast can you maintain

{{00:01:16}}
the value that you've already created for
the shareholder and continue to create

{{00:01:19}}
value with the competitive environment.

{{00:01:23}}
And of course this year we've already
had disruptions on that front as well.

{{00:01:28}}
Do you think that the balance
of these risks that you just

{{00:01:31}}
mentioned will change in 2025?

{{00:01:33}}
So we've seen it when COVID hit
that suddenly the financial risks

{{00:01:37}}
have come into the forefront.

{{00:01:40}}
But obviously a lot of these are non
financial risks that you mentioned.

{{00:01:44}}
Will we see a change in balance again?

{{00:01:48}}
I guess that all these risks
as macro risks will stay.

{{00:01:51}}
We'll see changes in the sub trends.

{{00:01:53}}
For example, in cyber security, you'll
see a change in the attack vectors, right?

{{00:01:59}}
That will create and have ramifications
on the financial environment as well.

{{00:02:03}}
For the economy, I think it's still
going to be maintained as a top concern,

{{00:02:07}}
especially as we're seeing changes in the
political landscape, like the US election.

{{00:02:11}}
And then you'll have a change in the
relative importance of these risks.

{{00:02:14}}
So now you have finance
first and then the rest.

{{00:02:19}}
It's probably going to
be like a 50:50 in 2025.

{{00:02:22}}
Okay, that makes sense.

{{00:02:24}}
And I wanted to touch upon something
that you'll be talking about at

{{00:02:27}}
RiskMinds International later on in
this year and that is regulations

{{00:02:31}}
around sustainability climate risk, etc.

{{00:02:34}}
How do you see that develop
globally and more regionally?

{{00:02:38}}
Sure, so Given that sustainability
is the response to the climate change

{{00:02:44}}
in a way, right, just part of it.

{{00:02:46}}
So we'll see more and more changes
in in the frequency of the events.

{{00:02:51}}
So the impact that it has on
regulations is more pressure, right?

{{00:02:54}}
So now banks and financial institutions
are going to be required to disclose

{{00:02:59}}
more, more often with more data
and more granularity, right?

{{00:03:04}}
More scenarios will need to be tested.

{{00:03:06}}
So what used to be extreme before
will now be normal, as you can see

{{00:03:10}}
with like the fires in Canada, right?

{{00:03:13}}
Or the changes in the
inundations across the world.

{{00:03:17}}
The other thing is that all of this
is going to require more resources,

{{00:03:21}}
more technology, more precision.

{{00:03:23}}
And this will create new design
imperatives as well for the products.

{{00:03:27}}
So green finance, instead of
being now a nice to have, is

{{00:03:30}}
going to become an imperative.

{{00:03:32}}
So I foresee this happening, not
as fast as we want it to be, but

{{00:03:36}}
this is a pressure that is going
to be emerging and maybe as a

{{00:03:40}}
top risk maybe in 26 and beyond.

{{00:03:43}}
Okay, fantastic.

{{00:03:44}}
Thank you very much for
joining me today, Adam.

{{00:03:46}}
Thank you for having me.

Adam, thank you so much for joining
me at RiskMinds Americas this year.

There are a lot, but I would
start with the economy.

We see consumer behavior changing, right?

That can lead to credit losses to a
lot of events where we have defaults.

And That's basically the first thing,
like the macroeconomic environment

and how it's going to affect all
the other domains, basically.

We are more and more reliant
on technology, so that

And that creates more and more
opportunities for threat actors to

basically steal data and basically
use it for malicious purposes.

You have regulators who are
issuing guidelines, notices, but

you also have industry standards
who are evolving with technology.

And that's basically a
balance that you need to keep.

And finally, you have the operational
resilience, which is basically when things

go wrong, how fast do you get back in
the game and how fast can you maintain

the value that you've already created for
the shareholder and continue to create

And of course this year we've already
had disruptions on that front as well.

Do you think that the balance
of these risks that you just

So we've seen it when COVID hit
that suddenly the financial risks

But obviously a lot of these are non
financial risks that you mentioned.

I guess that all these risks
as macro risks will stay.

For example, in cyber security, you'll
see a change in the attack vectors, right?

That will create and have ramifications
on the financial environment as well.

For the economy, I think it's still
going to be maintained as a top concern,

especially as we're seeing changes in the
political landscape, like the US election.

And then you'll have a change in the
relative importance of these risks.

So now you have finance
first and then the rest.

It's probably going to
be like a 50:50 in 2025.

And I wanted to touch upon something
that you'll be talking about at

RiskMinds International later on in
this year and that is regulations

How do you see that develop
globally and more regionally?

Sure, so Given that sustainability
is the response to the climate change

So we'll see more and more changes
in in the frequency of the events.

So the impact that it has on
regulations is more pressure, right?

So now banks and financial institutions
are going to be required to disclose

more, more often with more data
and more granularity, right?

So what used to be extreme before
will now be normal, as you can see

Or the changes in the
inundations across the world.

The other thing is that all of this
is going to require more resources,

And this will create new design
imperatives as well for the products.

So green finance, instead of
being now a nice to have, is

So I foresee this happening, not
as fast as we want it to be, but

this is a pressure that is going
to be emerging and maybe as a

Thank you very much for
joining me today, Adam.

RiskMinds & QuantMinds

Expert Insight

Adam Ennamli, Chief Risk Officer at the General Bank of Canada, discusses the key risks that keep him awake at night, including economic volatility, technological dependencies, regulatory compliance, and operational resilience. He emphasizes concerns about how these risks may evolve by 2025, particularly in balancing financial and non-financial risks. 