The Luxembourg regulator, the CSSF, and the risk management industry are in close contact regarding new regulations. The CSSF sets up technical committees, with practitioners to discuss new regulations to ensure that industry practice is fully aligned with the latest regulations and that the latter are efficiently implemented.
“We receive frequently new texts from the regulator, with useful information and insights, which is not the necessary the case in every European country. If I have a question, I can directly contact the person responsible for risk for the funds industry or the person responsible for the risk on the banking side and this helps us to iron out any issues.”
PROFESSIONAL STANDARDS FOR RISK MANAGEMENT
Neuberg, is Chairman of ALRiM: the Luxembourg Association for Risk Management, which supports the development of risk management in the Grand Duchy. The association, in partnership with the House of Training (HoT, former IFBL), has developed a complete training programme in risk management covering a wide variety of topics.
“Educating risk managers is a huge challenge because we need to provide some extremely sophisticated technical courses and on the other hand we need some courses where we offer the big picture, a global view. Continuous training in risk management is also necessary at every level, even at the board level,” adds Neuberg.
BOARD-LEVEL RISK MANAGEMENT
“When you drive a strategy, you need to be aware of the risks. Take the risk management weakness related to the subprime crisis, when a lot of board members were totally ignoring the level of risk which they had on some products. Is that acceptable? Can you be in a car and ignore the speed at which you are at? No, so you need some technicity at the highest level, otherwise it is like you are playing with a bomb without knowing when it will explode.”
LUXEMBOURG SCHOOL OF FINANCE TO LAUNCH MASTER IN RISK MANAGEMENT