The ISO 31000 principles, for example, provide frameworks for risk management process improvements that can be used by companies, regardless of the organization's size or target sector. The ISO 31000 is designed to "increase the likelihood of achieving objectives, improve the identification of opportunities and threats, and effectively allocate and use resources for risk treatment," according to the ISO website. Although ISO 31000 cannot be used for certification purposes, it can help provide guidance for internal or external risk audit, and it allows organizations to compare their risk management practices with the internationally recognized benchmarks.
After nearly a decade of low interest rates, hampering both net interest income and net income margin, the Basel Committee for Banking Supervision has published the final standards on interest rate risk (BCBS 368). These standards are set to take effect at the same time when banks’ treasuries and risk departments are deciding how they want to position their balance sheets against rising interest rates. Any decision on the tenor mismatch strategy at the dawn of a new rate cycle is likely to shape net interest income – and its volatility – for the next decade or so. FIS’ IRRBB solution helps banks: