For example, yesterday Chairman Caruana mentioned the importance of alignment between sound risk management and financial information. On the one hand, financial information generated from risk management activity should be provided to all external users of financial statements, but at the same time that information also provides important feedback to risk managers about their own performance.
The increased use of derivatives to adjust exposure to risk in financial markets has also contributed to the rise in the notional amounts of outstanding derivatives contracts seen in recent years, in particular in over-the-counter (OTC) derivatives markets with interest rates and equities as underlying securities.