G20 finance ministers’ meeting results in further risk management commitments

A statement released by the finance ministers and central bankers of the G20 nations following the recent meeting has made further commitments in the area of risk management and financial sector resiliency.

The commitments include:

- To make clear and identifiable progress in 2009 on delivering a corporate governance framework to prevent excessive short-term risk taking and to mitigate systemic risk, on a globally consistent basis.

- Corporate governance reforms will ensure appropriate board oversight of risk.

- A requirement for systemic firms to develop firm-specific contingency plans will be enforced.

- Crisis management groups for major cross-border firms to strengthen international cooperation will be established.

- Risk capture in the Basel II framework will be improved.

- The possible role of contingent capital will be explored.

- The consistent and coordinated implementation of international standards, including Basel II, to prevent the emergence of new risks and regulatory arbitrage, will be encouraged.

•Date: 7th Sept 2009• Region: World •Type: Article •Topic: Financial sector
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