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Hungary’s Financial Institutions Facing Challenges in Risk Management
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Budapest, Hungary - The financial sector in Hungary is navigating a complex and rapidly changing regulatory environment, posing significant challenges for risk management. A recent report by EY highlights the unprecedented levels of uncertainty facing Hungarian financial institutions, driven by evolving business models, shifting consumer behaviors, and increasing regulatory scrutiny.
Addressing Challenges with Integrated Risk Management
To address these challenges, Hungarian financial institutions are turning to integrated risk management (IRM) solutions that can help them navigate the complexities of risk and regulation. IRM involves a holistic approach to risk assessment, encompassing both qualitative and quantitative methods to identify, measure, mitigate, and monitor risks.
EY’s Financial Services Risk Management Advisory Services
EY’s Financial Services Risk Management advisory services team has extensive experience in providing IRM solutions to financial institutions in Hungary. The team offers a range of services, including:
- Enterprise risk management: assisting with the creation, enhancement, implementation, and review of integrated frameworks for identifying, measuring, mitigating, and monitoring risks from all sources.
- Liquidity risk management: providing strategic recommendations to identify, measure, and manage liquidity risk, helping organizations comply with regulatory expectations and enhance their position in an evolving competitive landscape.
- Credit risk management: assisting in credit risk identification, measurement, management, and reporting.
- Operational risk management: assisting with the creation, enhancement, implementation, and review of operational risk frameworks.
- Compliance risk management: designing effective, flexible, and robust compliance programs to address unique business, regulatory, risk tolerance, technology, and operational model requirements.
- Capital management: offering services to help anticipate and adapt to regulatory changes and assess their impacts on business models and capital needs.
- Market risk management: providing financial risk identification, measurement, mitigation, monitoring, and reporting of exposures to interest rate, commodity, equity, and foreign exchange movements.
EY’s Financial Crimes Compliance Services
EY’s Financial Crimes Compliance team also offers services in designing, implementing, and operating Anti-Money Laundering (AML), Know-Your-Customer (KYC), and Office of Foreign Assets Control (OFAC) sanctions functions. The team combines market-leading innovation with extensive technical experience to drive efficiency without sacrificing quality or sound risk management.
Ensuring Compliance and Enhancing Risk Management Capabilities
By leveraging EY’s IRM solutions, Hungarian financial institutions can ensure compliance with regulatory requirements, enhance their risk management capabilities, and stay ahead of the curve in a rapidly changing financial landscape.