The same holds for digital innovations. Have you had the chance to read through an outsourcing agreement? Today, banks tend to have multiple of such outsourcing relationships, and the share of processes outsourced to third party vendors is still increasing – especially due to digitalisation. For a supervisor, keeping up to date regarding outsourced processes may thus become a challenge in itself.
Second and adding to the complexity, both topics require new expertise. To develop a climate stress test, we first need to understand the different scenarios of global warming and how weather and climate phenomena would develop under them.