Financial Risk
What is Financial Risk?
The possibility of monetary loss arising from financial transactions, market conditions, credit defaults, or other financial factors.
Terms that appear alongside financial risk
Each of these is named in at least one of the same controls as financial risk. The number is how many controls name both.
- governance 4 shared controls
- basel iii 3 shared controls
- stress testing 2 shared controls
- machine learning 2 shared controls
- data quality 2 shared controls
- audit 2 shared controls
- operational risk 2 shared controls
Frameworks that govern financial risk
What the standards actually require on financial risk
Requirements naming financial risk across 5 standards, quoted from the control text.
Paragraphs 78-92 establish presentation requirements. Per public IFRS 17 abstract + IFRS Foundation Project Summary + Wikipedia + Big 4 Insurance Industry Insights (full IFRS 17 text NOT reproduced): Statement of Financial Position (Para 78-79) - entity presen...
IFRS17-Presentation-StatementFinancialPosition-Performance-Revenue · IFRS 17 - Presentation + Statement of Financial Position + Statement of Financial Performance + Insurance Revenue + Insurance Service Result + Insurance Finance Income/Expense (Paragraphs 78-92) →HKMA SPM financial risk management modules. CR CREDIT RISK MANAGEMENT: (1) CR-G General Principles - sound credit risk policies + processes + scoring + monitoring + portfolio management + concentrations + Basel principles alignment;
HKMA-SPM-CR-MR-IR-LM-CA-Risk · HKMA SPM Credit Risk (CR), Market Risk (MR), Interest Rate Risk (IR), Liquidity (LM), Capital Adequacy (CA) →Before entering into or materially modifying a material arrangement the entity must undertake appropriate due diligence including a proper selection process and an assessment of the provider ability to deliver on an ongoing basis, and must assess the financial...
CPS230-43 · Due Diligence Before Entering or Modifying a Material Arrangement →The IRM Standard introduces a four-category risk taxonomy + FOIL (Financial/Operational/Internal/External) typology to provide comprehensive Risk Universe coverage.
IRM-RiskCategories-Strategic-Financial-Operational-Knowledge-FOIL-External-Internal-DownsideUpside · IRM Four Risk Categories - Strategic + Financial + Operational + Knowledge + FOIL Typology + External vs Internal + Downside Threats and Upside Opportunities + Risk Universe →Coordination positions ISSB Standards within the comprehensive global sustainability disclosure ecosystem. (1) EU Coordination: EU Corporate Sustainability Reporting Directive (CSRD) effective phased from 1 January 2024 + European Sustainability Reporting Stan...
ISSB-Coord-EU-CSRD-ESRS-Taxonomy-TCFD-TNFD-GRI-CDP-US-SEC-UK-SRS-AASB-CSDS-SSBJ-KSSB-30-Jurisdictions · ISSB Coordination - EU CSRD/ESRS + EU Taxonomy + US SEC Climate Disclosure (vacated) + California SB-253/261 + UK SDR + Australia AASB S1/S2 + Canada CSDS + Japan SSBJ + Korea KSSB + 30+ Jurisdictions + TCFD + TNFD + GRI + SASB + CDP →Questions people ask about financial risk
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See how Financial Risk applies across compliance frameworks
Our platform maps 686 frameworks with 311K cross-framework control mappings. Explore how this concept is addressed across standards.