Economist states complex global environment redefines risk management in banking

The volatility of international markets, geopolitical tensions, climate risks, and technological challenges are redefining strategic risk management in banking and raising the importance of strengthening financial resilience and institutional response capabilities, stated Dr. Raúl E. Hernández Báez, as part of his keynote address at the Latin American Congress of Internal Auditing and Risk Assessment (CLAIN 2026).

During his presentation at the event organized by the Association of Multiple Banks of the Dominican Republic (ABA) and the Latin American Federation of Banks (FELABAN), Hernandez noted that volatility will continue to be one of the main elements that will characterize the global economic scenario, particularly in the face of the impact of conflicts in the Middle East, pressure on energy costs, logistical disruptions and the risks associated with cybersecurity and artificial intelligence technologies.

In that sense, he considered that the region will face an environment of moderate growth, greater inflationary challenges and fiscal pressures, in a context where financial institutions must continue to strengthen their resilience models and comprehensive risk management.

“Latin America can find strategic opportunities amid the current global context, particularly through the strengthening of regional trade, economic integration, and the “friendshoring” dynamics driven by the United States to reduce global dependencies in supply chains,” said Hernandez.

The Managing Partner of CIEF Consulting and the Santo Domingo Institute of Finance also highlighted the importance of deepening stress tests, developing simulations of extraordinary scenarios, and recalibrating risk models to enable a greater capacity to anticipate complex scenarios or international volatility events.

“The financial system currently operates in a global environment marked by economic uncertainty, international conflicts, inflationary pressures, technological transformation, and increasing exposure to macro-financial and geopolitical risks,” he stated, adding that the big challenge for banks in 2026 is not a commercial problem, it is a strategic risk management challenge.

When analyzing the impact of these factors on international markets and emerging economies, the specialist highlighted the relevance of strengthening coordination between the public and private sectors, preserving investor confidence, and continuing to promote mechanisms that favor the stability and competitiveness of the financial system.

In this context, the CEO of the ABA, Rosanna Ruiz, valued the vision presented by Hernández and affirmed that the Dominican multiple banking faces this complex global environment with robust solvency indicators, adequate asset quality, and strengthened capitalization levels, elements that contribute to preserving the stability and resilience of the financial system.

Economist Raúl Hernández’s conference was part of the academic agenda of the Latin American Congress of Internal Auditing and Risk Assessment (CLAIN 2026), which brought together more than 300 international experts, regulatory authorities, and representatives of the Latin American financial system in Santo Domingo for two days.