He is planning further expansion in Budapest at Morgan Stanley
The director called the large number of talented analytical professionals the main attraction of Hungary. The Hungarian education system produces many useful professionals with analytical thinking and strong IT or mathematical knowledge, and also the fact that Budapest is in the European time zone, he said. Morgan Stanley provides a lot of financial services from London and New York, and Budapest can work in the same time zone as London and has a large overlap with New York, he noted.
Tete: their strong risk management team has been present in Budapest since 2008. In addition, it has become an important analysis center in Hungary, employing two thousand excellent professionals. Talk about facing a lot of new challenges in the area of risk management, a lot of stress testing, and increasing expectations in terms of reporting obligations to supervisory authorities.
As long as there is a supply of talented professionals, we are happy to expand in Hungary
– he said.
The two main focus areas of risk management are geopolitical risks and the uncertainties of inflation and monetary policy – drew attention. Both to the high volatility of the markets and the uncertainty of the global economic trajectory, including the possibility of a recession. For this reason, they primarily pay attention to those events that can have significant consequences in the world, he said, indicating: they are also prepared for the risk of continuous inflationary pressure, uncertain central bank monetary policy and fluctuating interest rates. The current environment is completely different from what was usual in the last ten years, and risk management has a big role in adapting to this environment – he emphasized.
He touched on: climate risk is one of the most important new pillars of risk management. Morgan Stanley is the first US bank to commit to a net zero emissions target. This means that by 2050, they plan to reduce the net emission resulting from lending activities to zero. In addition to reducing the emissions resulting from Morgan Stanley’s operations, they strive to reduce emissions from their financing for their clients.
He said about the new types of risks: banks have traditionally focused on classic credit risk and market risk on various markets (the stock, commodity or foreign exchange markets), as well as their own financing and liquidity risks. However, more and more in the last 7-10 years does not apply to operational risks arising from factors such as data security, cyber attacks, supplier risks and business continuity – that is, for everything that is outside the traditional view of financial risks – he explained.
Cover image source: MTVA/Commissioner: Miklós Váli. Morgan Stanley is an American multinational corporation, banking bank and financial service provider, its investment headquarters are located in New York, and its headquarters in Budapest are in the capital’s IX. district in the Lechner Ödön tree row. The company maintains offices in more than 42 countries and employs more than 60,000 employees. Its clients include individuals, governments and individuals.