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Risk Channel helps you stay ahead of essential risk news shaping your profession. Every weekday, our unique blend of AI, risk experts and researchers monitor 100,000s of articles to share a summary of the most relevant and useful content to help you lead, innovate and grow.

From supply chain to regulatory enforcement, data privacy, GRC controls, whistleblowers, and risk management strategies. Risk Channel is the only trusted online news source dedicated to covering current headlines, articles, reports and interviews to make sure you’re at the forefront of changes in the risk industry.

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Risk Channel
North America
U.S. companies barred from imposing noncompete agreements on employees

U.S. companies will no longer be able to enforce noncompete agreements on employees, following a rule approved by the Federal Trade Commission (FTC). The ban aims to increase job mobility and prevent restrictions on workers' ability to switch jobs for higher pay. The FTC argues that noncompete agreements harm workers and the economy by reducing job churn and limiting the hiring ability of other businesses. The rule, which received support from the majority of the 26,000 comments received, will take effect in six months unless blocked by legal challenges. Business groups have criticized the measure, claiming it exceeds the FTC's authority. The U.S. Chamber of Commerce plans to sue to block the rule. Noncompete agreements are already banned in three states, including California.

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Risk Channel
UK/Europe
Lenders warned over private equity exposure

The Bank of England has issued a warning to lenders, saying they must improve the oversight of their dealings with private equity firms. The central bank has found that many lenders lack a clear picture of their lending to the buyout sector and individual private equity firms. It has ordered them to tighten up their risk management and conduct internal stress tests to gauge potential losses. In a letter to several large UK and international commercial banks signed by Rebecca Jackson and Charlotte Gerken, officials at the Bank's Prudential Regulation Authority, the Bank said lenders' boards need to be regularly informed of their bank's overall private equity exposures to ensure they are comfortable with the risks they face. Ms Jackson, the Bank's executive director for authorisations and international supervision, said: "The overall risk here is that when banks fail to properly measure and assess their aggregate exposures, and in the absence of a defined risk appetite framework and board engagement, it's very easy to develop an outsized and concentrated exposure that leaves one open to the risk of a large loss . . . The need for significant improvements in risk management is clear, and it's clear that these need to happen now. It's better, as Shakespeare said, to be three hours too soon than a minute too late.” Her speech follows a broader view from the BoE on Monday on the role of private equity, its links to banking and concerns that opacity on leverage in the $8 trillion global sector raises. Banks have been told to report back to the regulator by August 30.

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