The Financial Markets Standards Board has published a Spotlight Review finding that, despite stronger frameworks and controls, many wholesale financial markets firms still struggle to manage non-financial risk holistically across their organizations. Covering technology, governance, conduct, culture and third-party dependencies, the review calls for an integrated, forward-looking approach that combines a fit-for-purpose control environment with clear ownership, coordinated decision-making and sound judgment. The review identifies effective practices including end-to-end ownership, an appropriate balance between controls and judgment, alignment of incentives with risk outcomes, visibility of interconnected risks and the integration of culture and behavioral capability into daily operations. It also provides three case studies and a three-stage development pathway for senior management, business heads and risk leaders to support assessment and peer benchmarking. The review complements existing regulatory frameworks and firm-specific arrangements and does not establish new standards or requirements.
Financial Markets Standards Board2026-08-05
Financial Markets Standards Board review identifies persistent gaps in enterprise-wide non-financial risk management
The Financial Markets Standards Board has found that many wholesale financial markets firms still struggle to manage non-financial risk holistically despite stronger frameworks and controls. Its review promotes clearer ownership, integrated decision-making, sound judgment and greater visibility of interconnected risks. It provides case studies and a benchmarking pathway but sets no new standards or requirements.