Stress Testing Against Climate Risk – A key Emerging Exercise for Banks
Climate Risk Stress Testing Background Climate change is one of the most complex challenges that society faces today. The continued and growing emissions of greenhouse gases since the industrial revolution have led to increased GDP, but at the price of increasing temperatures creating risks to life, ecosystems, and economies. There is increasing consensus that risks […]
Climate Related Financial Disclosures and Stress Testing
Case Study Climate Related Financial Disclosures and Stress Testing Overview A large bank wanted to further develop the quality and maturity of their climate-related disclosures in accordance with TCFD recommendations. Aspect Advisory’s overall objective was to support the Bank with the review and analysis of their strategy for climate action and propose further development in […]
ON THE STATE OF CRYPTO ASSET REGULATION IN THE EU
Crypto Asset Regulation The Basel Committee’s public consultation on the prudential treatment of banks’ crypto asset exposures builds on the proposals in the first consultation issued in June 2021. Unbacked crypto assets and stable coins with ineffective stabilization mechanisms continue to be subject to a conservative prudential treatment, with a new limit proposed on gross […]
CRR 3 – Changes and Impact on Exposure Class “Real-Estate”
More granularity for a complex market The Economist recently reported that Real Estate is the largest asset class in the world, making up 68% of the world’s non-financial assets in 2020.[1] It naturally follows then that a large portion of European banks’ lending is dedicated to real estate. This is the latest asset class to […]
Explore a 10-year arc of market leaders across SA’s Banking Sector
“In God we trust, all others must bring Data. “ W. Edwards Deming, statistician Aspect Advisory uses leading edge technologies to surface interactive, customisable, dynamic, and strategy relevant information from big data into intuitive user-friendly cloud based platforms – giving Executives real time agility at their fingertips, enabling them to distil market trends […]
The COVID-19 Pandemic: did companies prepare for this?
As with every individual, companies too are exposed to risks. Therefore, once a year large companies carry out a risk inventory assessment, answering a simple question: What can go wrong? The primary risk of non-financial corporates is business risk, i.e. the risk that they can’t sell as many products/ services as they wanted and/ or […]