De-risking definition
De-risking. ’ means actions taken by a financial in-
De-risking means mitigating the risks of doing business in high-risk environments through concessionary finance or investment guar- antees. Risk-free capital might make it possible for companies to undertake projects that they might otherwise deem to be too risky. The absence of any stipulations or qualifiers about impact manage- ment in many de-risking strategies suggests that the approach is firmly rooted in the belief that businesses that are committed to standards of responsibility intrinsically and inevitably have positive impacts, and no negative impacts, on conflict and fragility. The World Bank Group and OECD DAC donors have been particularly forth- right in advocating a ‘de-risking’ agenda, with blended finance being deemed an appropriate tool for driving the growth of private sector markets in high-risk contexts.
De-risking means a limitation or cessation by obligated institutions of conducting activities generating obligations under AMLD4, which in practice means a refusal to provide services to entities from areas of increased risk ML and TF.
More Definitions of De-risking
De-risking. ’ means an action taken by a financial
De-risking means “actions taken by a financial institution to terminate, fail to initiate, or restrict a business relationship with a customer, or a category of customers, rather than manage the risk associated with that relationship consistent with risk-based supervisory or regulatory requirements, due to drivers such as profitability, reputational risk, lower risk appetites of banks, regulatory burdens or unclear expectations, and sanctions regimes.”6 De-risking occurs when financial access is cut off indiscriminately, often to all of those in a community, without full-fledged evaluation of risk.