Risk & Resilience

The Office of the Comptroller of the Currency (OCC) has issued its Semiannual Risk Perspective for Fall 2024, painting a mixed picture of the federal banking system. While banks remain fundamentally sound, the OCC is waving red flags on growing risks—from stubborn commercial real estate stress to cyber threats and increasingly sophisticated fraud schemes. In short, this isn’t the time for banks to get comfortable.

The Basel Committee on Banking Supervision has officially closed the book on a 25-year-old rulebook, unveiling final guidelines for counterparty credit risk (CCR) management that aim to address vulnerabilities exposed in recent financial turmoil. Announced on December 11, 2024, these guidelines target the persistent weaknesses in CCR, particularly in dealings with non-bank financial intermediaries (NBFIs), which have recently made headlines for all the wrong reasons.

As the global financial landscape grapples with a series of profound challenges, the Austrian Financial Market Authority (FMA) is preparing for a busy and transformative year ahead. In a recent briefing, FMA Executive Directors Helmut Ettl and Eduard Müller highlighted their strategic priorities for 2025, emphasizing that Austria’s financial environment is unlikely to improve in the short term.

As 2025 looms on the horizon, the regulatory landscape is bracing for seismic changes. Dubbed the "Year of Regulatory Shift," the upcoming year is expected to reshape the rules governing technology, data risks, consumer protections, and corporate governance. This prediction, highlighted in KPMG US's latest Ten Key Regulatory Challenges of 2025 report, signals a turning point for organizations aiming to navigate a web of emerging risks.

In the high-stakes world of energy, a cyberattack isn’t just a technical failure—it’s a business disruption. And for Halliburton, one of the largest oilfield services companies globally, that disruption came at a hefty price. In August 2024, the company was hit by a ransomware attack linked to the notorious RansomHub group, leading to a significant financial loss that’s being felt in both immediate and long-term ways.

In the wake of persistent market uncertainties and last year’s banking sector turmoil, the Basel Committee on Banking Supervision has once again taken a firm stance on global banking resilience. Meeting in Basel on November 19–20, 2024, the committee zeroed in on advancing regulatory consistency, improving risk management practices, and equipping supervisors with sharper tools for navigating the complexities of today’s financial ecosystem.

Between May and October 2024, the Federal Reserve has been busy shaping the regulatory landscape for U.S. financial institutions, reinforcing its commitment to ensuring the safety, stability, and soundness of the banking system while protecting consumers in a rapidly changing environment. In its latest Supervision and Regulation Report, the Fed highlights several initiatives that reflect its ongoing efforts to keep pace with emerging risks and challenges in the financial sector.