Geopolitical uncertainties require proactive risk planning – FIRM CEO Gerold Grasshoff outlines in an interview with Tobias Fischer from Börsen-Zeitung why geopolitical risks – from the tensions between the USA and China to the conflicts in Ukraine and the Middle East – represent an increasing challenge for the financial sector. Banks should therefore increasingly run through scenarios in order to recognize risks at an early stage and react to them strategically.
He also warns of the unintended side effects of sustainability regulation. Strict regulations can steer investments, but not necessarily achieve sustainable improvements. After all, if “brown” assets only change hands but no CO₂ emissions are reduced globally, the actual effect will not materialize. “Then we may become poorer, but not necessarily greener,” says Grasshoff.