Executive Summary
Financial institutions’ enterprise risk management (ERM) frameworks have historically focused on credit, market, and operational risk. Risk categories have evolved to reflect an ever-complex world, including non-financial risks such as cost of living, natural disasters, and geoeconomic confrontations. The World Economic Forum’s 2023 Risk Report highlights these non-financial risks as being top of mind with the businesses and political leaders from around the world that they surveyed. The Global Risks and Trends Framework (GRAFT) provides organizations with a strategic framework to manage how these non-financial risks shift our underlying assumptions around, for example, peace between major powers and to integrate them into the ERM frameworks.