Financial Risk Outlook
Related information
This year's Financial Risk Outlook is focused on the risks arising from the events of the second half of 2007 and the less benign economic outlook that we expect over the next 18 months.
The tighter financial conditions have led to the emergence of new risks and also highlighted some aspects of Priority Risks covered in the previous editions of the Financial Risk Outlook.
The priority risks facing Wholesale small firms are:
- Firms need to pay close attention to the sustainability of their business model. In particular, they need to ensure they have the strategy, business-continuity planning and financial resources that will enable them to survive changes in the current economic environment, including potential for operational disruption.
- Increased financial pressures may lead to financial firms shifting their efforts away from focusing on conduct of business requirements and from maintaining and strengthening business-as-usual processes.
- Tighter economic conditions could increase the incidence or discovery of some types of financial crime or lead to firms' resources being diverted away from tackling financial crime.