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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
Citigroup analysis reveals potential billions in loan losses due to ramp-up of climate change efforts

Citigroup has conducted a confidential analysis that reveals potential loan losses of billions of dollars if efforts to combat climate change accelerate. The analysis, prepared by the bank, shows that if the world were to achieve net-zero greenhouse gas emissions by 2050, Citigroup could suffer $10.3bn in loan losses over 10 years. The losses would primarily impact borrowers in the oil, gas, and real estate sectors. While the estimated hit to Citigroup's loan book is relatively small compared to its $730bn wholesale loan book, it highlights the challenges faced by banks in managing their loan book exposure amid the transition away from fossil fuels. The analysis also found that severe hurricanes could trigger losses to Citigroup's loan portfolio, although the impact would be limited. The Federal Reserve has yet to publish aggregated findings on the climate exposure of major U.S. banks. Citigroup's analysis is based on assumptions and uncertainties, and achieving the net-zero target by 2050 would require significant policy changes.

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Risk Channel
UK/Europe
FCA is running out of allies in 'name and shame' row

The CEO of the Financial Conduct Authority (FCA) has been summoned to appear in front of a House of Lords committee as a row over the regulator’s plans to “name and shame” financial services firms under investigation spirals. Nikhil Rathi has defended the plans, arguing that being more transparent about probes will serve as a deterrent. The City roundly condemned the move and the Chancellor also stepped in and urged the FCA to rethink its plans. Now, the Lords' Financial Services Regulation Committee has launched its own inquiry after Rathi failed to respond to a request to pause the implementation of the plans until after peers had properly scrutinised the proposal. Lord Forsyth of Drumlean, chair of the committee, said: “This isn't acceptable.” Meanwhile, a senior lawyer has made a rare call for the government to intervene and overrule the regulator. “This is but the tip of the iceberg,” said Harvey Knight, UK head of the financial services regulatory group at Withers. The FCA is “exceeding its statutory objectives in pursuit of what it considers to be its best interests without any balancing considerations,” he added. Finally, the Labour party said the FCA should listen to the City and ensure “an appropriate balance between enhancing the integrity of the sector while protecting the international competitiveness of the UK.”

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