Challenges of the new normal

Dear reader,

Twelve months ago, no one on our planet could have predicted the changes the world would go through in 2020. The world has transformed drastically due to the corona pandemic. Television shots of people shaking hands now appear as if images from a different era. Working from home has become the new normal and many of us have transformed our kitchen or bedroom into an office. We hope you and your loved ones are all in good health!

In the meantime, the world of treasury and risk kept spinning like mother earth herself. After all, in times of increased uncertainty, risk management offers stability. Particularly credit risk management has been in the spotlights. The procyclicality of provisioning under IFRS9 has urged regulators like the EBA to offer banks legislative and non-legislative moratoria.

In general, there has been more focus on credit risk models and credit risk management, to improve risk insights and solve issues resulting from the TRIM. There is also an increased attention for model validation and the corresponding model risk governance, to further improve the quality of the risk models. Earlier this year, we interviewed Martijn Habing of ABN AMRO to share his view on this.

More recently, we asked ING to share their vision on savings modeling. The ongoing low interest rate environment still heavily impacts the traditional business models of banks and the solvability of insurance companies and pension funds. This means that new business models and investment propositions are investigated and significant cost savings are required, probably also impacting you in person.

This Yearbook offers some interesting observations from the past year, including both external (ING, ABN AMRO) and internal (our consultants) points of view, and focuses on both banks and insurers. Like so many other things this year, it's different to what you're used to. There's no printed edition - too many physical mailboxes are unseen and untouched this year - but instead a more sector-focused collection, including the best articles from our Zanders Magazine, e-Newsletters and website curated in one digital Yearbook.

We wish you all a very successful and healthy 2021 and pleasant reading!

Jaap Karelse & Gerbert van Grootheest

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