The Financial Markets Standards Board has published a Spotlight Review finding that, despite stronger frameworks and controls, many wholesale financial market firms still struggle to manage non-financial risk holistically. Covering risks related to technology, governance, conduct, culture and third-party dependencies, the practitioner-led review calls for an integrated, forward-looking approach that combines effective controls with clear ownership, sound judgment and risk-based decision-making. The review highlights end-to-end accountability, appropriate use of controls and judgment, forward-looking investment, alignment between incentives and risk outcomes, visibility of interconnected risks, and the integration of culture and behavioral capabilities into daily operations. Three case studies illustrate how weaknesses can cause financial loss, regulatory intervention and reduced client and market trust, while a three-stage development pathway supports management 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 market 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, but does not introduce new standards or requirements.