White Paper

The Legal Risk Challenge Widens

Company: Berwin Leighton Paisner

Berwin Leighton Paisner case study

Category: Compliance

Published: 22 January 2015

Format:

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Overview

Draft rules published by the European Banking Authority (EBA) in June 2014 would require European banks to quantify broadly-defined legal risks as part of their regulatory-capital
calculations. They will force in-house teams to redraw risk-management plans, but may help banks manage the massive costs of conduct breaches - an average of over £30bn a year for ten international banks between 2008 and 2013.

The rules, which could be phased in as early as 2016 as part of the Basel III implementation plan, would extend the scope of legal risk to include what many banks see as conduct risk - a significant change, as many organisations treat these risks as separate categories.

To find out more download this white paper here.

 

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