ESG risk: becoming a problem

ESG risk: becoming a problem

Incorporating ESG into risk management is hugely complicated, especially for SFDR compliant funds. Practically no one has any experience or competency in this area. This looks like becoming the biggest issue those with board risk responsibilities have had to face in years.

Talking at an IFI Global event recently Peter Cripwell, CEO of RiskSystem, said that the industry is in the ‘foothills’ of where this is going over the next few years. The impact of ESG on risk management is going to be ‘extremely profound,’ he added.

There are a number of interconnected problems that have to be overcome. But there is hardly anyone with the right background and skills who knows how to untangle them. And then there is the data problem. That requires yet another set of skills.

To read more on this story see the May issue of The NED.