Should a hard Brexit materialise, for instance, they will need to figure out what that means – for customer relationships, for foreign services and supervisory licences. Such a conscientious analysis then needs to be followed by equally meticulous preparations. That is the only possible protection from unexpected consequences.
The above complements other important efforts to strengthen risk management practices and governance at banks and other financial institutions. The lessons of failures in these areas have been set out in reports and guidance by the Senior Supervisors Group (SSG), the Basel Committee, by the IIF and the Counterparty Risk Management Policy Group.