New position paper on climate risks published

By Dr. Jochen Papenbrock, Dr. Sebastian Fritz-Morgenthal, Philipp Adamidis

In the position paper “Challenges and opportunities for model risk management”, the authors Sebastian Fritz-Morgenthal, Philipp Adamidis and Jochen Papenbrock describe why the use of artificial intelligence (AI) in banks promises a variety of benefits – from increasing efficiency to improving decision-making. At the same time, the increased use of AI models brings with it new challenges, particularly in the area of model risk management.

Strategies pursued to date require a fundamental overhaul. The position paper examines the regulatory requirements and rules of the European Banking Authority (EBA), the European Central Bank (ECB), the German Federal Financial Supervisory Authority (BaFin) and the EU AI Act. It also shows how the expanded use of AI affects model risk and the challenges and, in particular, opportunities this presents for banks’ model risk management.

By Dr. Til Bünder, Nicholas Martin

How the climate and energy policies of the EU and the USA affect the economy

The current position paper of the FIRM Round Table ESG examines the climate policy measures of the European Union (EU) and the United States (US) in terms of their impact on economic performance.

The authors Dr. Til Bünder and Nicholas Martin explain how the significantly more ambitious regulations in the EU will affect various economic levels, where opportunities will arise and what risks need to be considered. A comparison of the EU and US climate and energy policies shows that the US is becoming more attractive due to its direct and simple approach to promoting green investments. The EU, on the other hand, is jeopardizing its leading position in the field of green innovation and investment due to its more complex regulation and the fragmentation of financing mechanisms. It is therefore crucial that the EU continues to develop its political framework conditions in such a way that climate targets are achieved and its economic competitiveness is secured at the same time.

Navigating the Future: DLT and Digital Assets
in the Evolving Realm of Asset Management

Emerging technologies such as digital ledger technology (DLT) are revolutionizing numerous industries, including the asset management sector. This white paper analyzes the latest advances in the application of these technologies in asset management and provides an outlook on the digital transformation in the coming years.

The wealth management industry is increasingly using digital assets and DLT to diversify its offering and improve operational efficiency. Institutional interest in digital assets in particular is on the rise, putting them in the spotlight for various investment strategies. The commitment of industry giants such as Goldman Sachs and BlackRock underlines the importance of this trend.

This white paper examines the integration of DLT into asset management, describing the benefits as well as the potential risks. Recommendations for a successful introduction are also given. It shows how DLT can rationalize processes, reduce costs and create transparency within asset management processes, in research, trade processing and risk management.

The paper addresses key areas such as tokenization, trade settlement, risk management and the possibilities of decentralized finance (DeFi). A case study by Bankhaus Metzler on the issue and trading of native crypto fund shares under German law will also be shown. The authors provide an outlook on the impact of the integration of DLT and digital assets on the asset management industry.

Authors: Dr. Christoph Wronka, Jens Hermann Paulsen, Lars Ulbricht (all Deloitte) as well as Hendrik König and Shahrok Shedari (both Bankhaus Metzler)

Risk management and operational
resilience in payment transactions

The importance of electronic payments has increased rapidly in recent years. The reasons for this are technological innovations, advancing digitalization and modernization of the market infrastructure. For banks, the processing of account and card payment transactions therefore represents a core value chain and an important business segment.

The position paper highlights the challenges that banks currently face in payment traffic. To this end, the Round Table conducted a survey among FIRM member institutions, surveyed the status quo, and developed important internal and external recommendations for action.

Authors: Dr. Markus Ampenberger (BCG), Prof. Dr. Tobias Berg (Goethe University), Daniel Regending (Deutsche Bank)

By Dr. Jochen Papenbrock, Dr. Sebastian Fritz-Morgenthal, Philipp Adamidis

In the position paper “Challenges and opportunities for model risk management”, the authors Sebastian Fritz-Morgenthal, Philipp Adamidis and Jochen Papenbrock describe why the use of artificial intelligence (AI) in banks promises a variety of benefits – from increasing efficiency to improving decision-making. At the same time, the increased use of AI models brings with it new challenges, particularly in the area of model risk management.

Strategies pursued to date require a fundamental overhaul. The position paper examines the regulatory requirements and rules of the European Banking Authority (EBA), the European Central Bank (ECB), the German Federal Financial Supervisory Authority (BaFin) and the EU AI Act. It also shows how the expanded use of AI affects model risk and the challenges and, in particular, opportunities this presents for banks’ model risk management.

By Dr. Til Bünder, Nicholas Martin

How the climate and energy policies of the EU and the USA affect the economy

The current position paper of the FIRM Round Table ESG examines the climate policy measures of the European Union (EU) and the United States (US) in terms of their impact on economic performance.

The authors Dr. Til Bünder and Nicholas Martin explain how the significantly more ambitious regulations in the EU will affect various economic levels, where opportunities will arise and what risks need to be considered. A comparison of the EU and US climate and energy policies shows that the US is becoming more attractive due to its direct and simple approach to promoting green investments. The EU, on the other hand, is jeopardizing its leading position in the field of green innovation and investment due to its more complex regulation and the fragmentation of financing mechanisms. It is therefore crucial that the EU continues to develop its political framework conditions in such a way that climate targets are achieved and its economic competitiveness is secured at the same time.

Navigating the Future: DLT and Digital Assets
in the Evolving Realm of Asset Management

Emerging technologies such as digital ledger technology (DLT) are revolutionizing numerous industries, including the asset management sector. This white paper analyzes the latest advances in the application of these technologies in asset management and provides an outlook on the digital transformation in the coming years.

The wealth management industry is increasingly using digital assets and DLT to diversify its offering and improve operational efficiency. Institutional interest in digital assets in particular is on the rise, putting them in the spotlight for various investment strategies. The commitment of industry giants such as Goldman Sachs and BlackRock underlines the importance of this trend.

This white paper examines the integration of DLT into asset management, describing the benefits as well as the potential risks. Recommendations for a successful introduction are also given. It shows how DLT can rationalize processes, reduce costs and create transparency within asset management processes, in research, trade processing and risk management.

The paper addresses key areas such as tokenization, trade settlement, risk management and the possibilities of decentralized finance (DeFi). A case study by Bankhaus Metzler on the issue and trading of native crypto fund shares under German law will also be shown. The authors provide an outlook on the impact of the integration of DLT and digital assets on the asset management industry.

Authors: Dr. Christoph Wronka, Jens Hermann Paulsen, Lars Ulbricht (all Deloitte) as well as Hendrik König and Shahrok Shedari (both Bankhaus Metzler)

Risk management and operational
resilience in payment transactions

The importance of electronic payments has increased rapidly in recent years. The reasons for this are technological innovations, advancing digitalization and modernization of the market infrastructure. For banks, the processing of account and card payment transactions therefore represents a core value chain and an important business segment.

The position paper highlights the challenges that banks currently face in payment traffic. To this end, the Round Table conducted a survey among FIRM member institutions, surveyed the status quo, and developed important internal and external recommendations for action.

Authors: Dr. Markus Ampenberger (BCG), Prof. Dr. Tobias Berg (Goethe University), Daniel Regending (Deutsche Bank)

By Dr. Jochen Papenbrock, Dr. Sebastian Fritz-Morgenthal, Philipp Adamidis

In the position paper “Challenges and opportunities for model risk management”, the authors Sebastian Fritz-Morgenthal, Philipp Adamidis and Jochen Papenbrock describe why the use of artificial intelligence (AI) in banks promises a variety of benefits – from increasing efficiency to improving decision-making. At the same time, the increased use of AI models brings with it new challenges, particularly in the area of model risk management.

Strategies pursued to date require a fundamental overhaul. The position paper examines the regulatory requirements and rules of the European Banking Authority (EBA), the European Central Bank (ECB), the German Federal Financial Supervisory Authority (BaFin) and the EU AI Act. It also shows how the expanded use of AI affects model risk and the challenges and, in particular, opportunities this presents for banks’ model risk management.

By Dr. Til Bünder, Nicholas Martin

How the climate and energy policies of the EU and the USA affect the economy

The current position paper of the FIRM Round Table ESG examines the climate policy measures of the European Union (EU) and the United States (US) in terms of their impact on economic performance.

The authors Dr. Til Bünder and Nicholas Martin explain how the significantly more ambitious regulations in the EU will affect various economic levels, where opportunities will arise and what risks need to be considered. A comparison of the EU and US climate and energy policies shows that the US is becoming more attractive due to its direct and simple approach to promoting green investments. The EU, on the other hand, is jeopardizing its leading position in the field of green innovation and investment due to its more complex regulation and the fragmentation of financing mechanisms. It is therefore crucial that the EU continues to develop its political framework conditions in such a way that climate targets are achieved and its economic competitiveness is secured at the same time.

Navigating the Future: DLT and Digital Assets
in the Evolving Realm of Asset Management

Emerging technologies such as digital ledger technology (DLT) are revolutionizing numerous industries, including the asset management sector. This white paper analyzes the latest advances in the application of these technologies in asset management and provides an outlook on the digital transformation in the coming years.

The wealth management industry is increasingly using digital assets and DLT to diversify its offering and improve operational efficiency. Institutional interest in digital assets in particular is on the rise, putting them in the spotlight for various investment strategies. The commitment of industry giants such as Goldman Sachs and BlackRock underlines the importance of this trend.

This white paper examines the integration of DLT into asset management, describing the benefits as well as the potential risks. Recommendations for a successful introduction are also given. It shows how DLT can rationalize processes, reduce costs and create transparency within asset management processes, in research, trade processing and risk management.

The paper addresses key areas such as tokenization, trade settlement, risk management and the possibilities of decentralized finance (DeFi). A case study by Bankhaus Metzler on the issue and trading of native crypto fund shares under German law will also be shown. The authors provide an outlook on the impact of the integration of DLT and digital assets on the asset management industry.

Authors: Dr. Christoph Wronka, Jens Hermann Paulsen, Lars Ulbricht (all Deloitte) as well as Hendrik König and Shahrok Shedari (both Bankhaus Metzler)

Risk management and operational
resilience in payment transactions

The importance of electronic payments has increased rapidly in recent years. The reasons for this are technological innovations, advancing digitalization and modernization of the market infrastructure. For banks, the processing of account and card payment transactions therefore represents a core value chain and an important business segment.

The position paper highlights the challenges that banks currently face in payment traffic. To this end, the Round Table conducted a survey among FIRM member institutions, surveyed the status quo, and developed important internal and external recommendations for action.

Authors: Dr. Markus Ampenberger (BCG), Prof. Dr. Tobias Berg (Goethe University), Daniel Regending (Deutsche Bank)