Margarita Delgado: The management of non-financial risk

Opening remarks by Ms Margarita Delgado, Deputy Governor of the Bank of Spain, at the11th edition of the European SSM Roundtable, organised by the International Bankers Forum (IBF), Madrid, 15 November 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Good Morning and welcome to Banco de España for this 11th edition of the European SSM Roundtable, organised by the International Bankers Forum (IBF).

The topic for today's roundtable is the management of non-financial risk. This is an issue which is always in the spotlight and, at the same time, is quite hard to tackle.

The concept of risk is continuously used in banking regulation. A quick search in the CRR1 or CRR2 text will reveal that it is mentioned nearly 1,500 times in each.

Banks are certainly familiar with the regulatory requests to understand, measure, hedge, control, assess, address or mitigate risk. I believe it is fair to say that any firm that has survived the crisis and its long aftermath, without public support, has been largely successful in fulfilling these risk-related tasks. Of course, supervisors are also permanently concerned about risk; to some extent, it is what we are paid for.