The Risk Management and Financial Regulation Nexus
In the context of the International Risk Management Conference, held in Florence on 12-14 June 2017, the FBF organises a half-day practitioners’ workshop on financial markets and institutions, ‘The Risk Management and Financial Regulation Nexus’.
The IRMC conference, now in its 10th year, is co-organized by the New York University Stern Salomon Center for the Study of Financial Institutions and the University of Florence. The workshop, which takes place on 13 June at the European University Institute, complements the programme of the conference by adopting an explicit practitioners’ perspective to come to grips with the interplay of regulation and risk management.
Studying risk assessment methodologies today is particularly relevant, as they are becoming increasingly more complex and even more closely intertwined with the regulatory and supervisory framework. For example, the last years have seen an increase in the monitoring of business models of financial institutions, an advance in macro-prudential measures, as well as new powers on early intervention and resolution planning granted to resolution authorities.
Some of the key questions which the workshop intends to address are the following:
- Should financial stability be achieved through activist supervision or should legislators and regulators rely on the production of limited yet credible rules?
- Knowing the excessive risk-taking that characterised the financial industry in the past and the lack of effectiveness of self-regulation, does the alternative, i.e. a light-weighted regulatory approach, still have a future?
- If not, do regulators have the administrative and resource capacity to actively supervise financial institutions’ conduct, including internal risk management processes and business models?
- Last, but not least, how can risk managers deal with regulatory risk in the financial sector?
The workshop opens with a keynote speech by Mario Nava (Director, Financial system surveillance and crisis management, DG FISMA, European Commission) entitled ‘Financing Growth in Europe: Management of Risk and Efficient Allocation of Resources by the European Financial Sector’. Immediately afterwards, David Yermack (Albert Fingerhut Professor of Finance and Business Transformation, NYU Stern School of Business) delivers a speech on the ‘Risk in the Era of FinTech’. The interventions are followed by questions and answers from the floor, moderated by Elena Carletti, Scientific Director of the Florence School of Banking & Finance.
The second part of the workshop consists of a roundtable discussion, moderated by Cosimo Pacciani (Chief Risk Officer, European Stability Mechanism) featuring the participation of Francesca Campolongo (Head of the Finance and Economy Unit, Joint Research Centre), Michel M. Dacorogna (DEAR Consulting), Giuseppe Lusignani (Vice President, Prometeia and Professor, University of Bologna), Mauro Maccarinelli (Head of Financial and Market Risk, Intesa San Paolo) and Aldo Stanziale (Regulation and Macroprudential Analysis Directorate, Banca d’Italia).
The workshop is closed by Edward Altman (Professor of Finance, NYU Stern School of Business) and Oliviero Roggi (Professor of Finance, University of Florence and Chairman, The Risk Banking and Finance Society).