Luxembourg Risk Insights – June 2024

• The upcoming implementation of the Digital Operational Resilience Act (DORA) continues to dominate the agenda for financial institutions in Luxembourg.
• With the implementation of the EU’s Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD), firms are increasing their risk management efforts to comply with new environmental, social, and governance (ESG) requirements.
• Financial institutions in Luxembourg are prioritizing operational risk management due to increasing regulatory scrutiny and the need for robust business continuity plans. This is particularly relevant with the European Banking Authority (EBA) guidelines on outsourcing arrangements coming into effect.
• Following the recent merger completion of UBS with Credit Suisse last spring 2023, the unions Aleba, LCGB, and OGBL have announced the signing of a social plan affecting approximately 150 employees. A first wave of layoffs, impacting 70 to 80 employees, is scheduled for this July.
• Luxembourg-based firms are leveraging talent from across Europe to strengthen their risk functions, particularly in areas like compliance and operational risk.
• The risk management job market in Luxembourg remains tight. Companies are aggressively pursuing top-tier talent, placing a premium on candidates with specialized expertise.

Marine Soares

Senior Consultant European Risk
ms@barclaysimpson.com
020 7936 8903

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