The Paper shows that the financial sector contributes to more resilient societies and stands ready to provide insight and expertise in risk management.
The European economy is facing more and more risks with systemic features such as climate change, cyber-attacks, ageing, pandemic and geo-political developments. To address these risks, the European financial sector has a very specific expertise that it is ready to share with European policy makers so that it contributes to more resilient societies. Banks and insurers both have a critical role in supporting economic resilience, through investment and expertise in management of financial, business, and physical risks.
EFR Members stand ready to provide insight and expertise to promote EU, national and local engagement and to support policymakers in better preparing for known and emerging risks.
This Paper focuses on four specific areas where the European financial sector can play a role:
- closing the climate protection gap;
- enhancing responses to cyber crime;
- managing ageing risks for a resilient society; and
- managing geopolitical risks and future pandemics.
The common denominator in terms of lessons learned in these four areas is the importance of joint efforts and close collaboration between public and private stakeholders, which could lead in some cases to the promotion of public-private partnerships, or new types of public-private risk-sharing mechanisms with the aim to create greater awareness, mitigate risks and enhance preparedness.
Going forward, the EFR believes that the current challenging times can provide for real momentum for regulators, policy makers and the financial sector to take a bigger leap into the future and set ambitious goals.