Emerging risk detection continues to pose dangers

Regulators keen to see evidence of how institutions identify emerging risks in next round of stress tests

Institutions of all kinds are to struggling to engage staff in effectively detecting and communicating emerging risks, according to one source. And with regulators increasingly keen to see how firms are working, the pressure is on.

Under the individual capital adequacy assessment process (Icaap), under the Pillar II process of the Basel II capital adequacy rules, firms annually identify emerging risks at an executive level to ensure their capital models are strong enough, but beyond this, says