ABN Amro has begun a sweeping reorganisation of its risk management functions, just weeks before chief executive Marguerite Bérard is due to present her vision for the Dutch bank’s future. The move underscores the pressure on European lenders to sharpen oversight while containing costs, as new regulatory standards and past compliance failures continue to shadow the sector.
Employees in risk management and in the processes and control teams were informed last Friday of the planned changes. The bank’s works council must still approve the proposals, and job losses have not been ruled out. A spokeswoman for ABN Amro said the aim was clear: “We are now centralising our risk capabilities through restructurings so we can invest in better servicing our clients. This shows the ability of the bank to adapt to changing circumstances.”
The reorganisation follows a hiring freeze in April and a shake-up of corporate banking in June, part of a concerted attempt to rein in costs. Bérard, who took charge in April as ABN Amro’s first female chief executive in its three centuries of history, has promised investors that her priorities are “enhancing our profitability, optimising our capital position, right-sizing our cost base and achieving meaningful growth.” The results of a full strategic review will be laid out at November’s capital markets day.
The bank’s chief risk officer, Serena Fioravanti, has framed the overhaul as an opportunity to embed stronger controls without paralysing client service. In an internal interview, she described her philosophy as ensuring risk responsibility is exercised “closer to the business, by people who have the ability, know-how and courage to make decisions.”
Since joining in October 2024, Fioravanti has pushed for simplification and efficiency, shortening risk committee meetings and insisting that “we act in a coordinated way across all parts of the bank. We need to work as one team - only then can we deliver the power of the full bank to our clients.”
Her arrival coincided with an effort to strengthen surveillance and resilience after a series of regulatory lapses. Last October, the London Metal Exchange fined ABN Amro Clearing Bank £230,000 after identifying inadequate systems to detect potential market abuse between 2018 and 2020. The bank accepted the sanction without admitting or denying the breaches, and has since upgraded its controls.
For insurance and risk professionals, the episode was a reminder of the cost of weak monitoring in complex markets. Failures in surveillance not only trigger fines but can expose counterparties and insurers to unquantified liabilities if misconduct is left unchecked.
Fioravanti has also stressed the need to embrace the Basel IV capital rules that came into force earlier this year, bringing tighter requirements on model use and data quality. “Basel IV brings stricter capital requirements. It also encourages banks to move from internal to more standardised risk models that demand extensive, granular data,” she said.
Beyond capital rules, she highlighted two emerging threats: cybercrime and sustainability risk. Daily phishing attempts and data breach efforts have become a persistent hazard. “In 2024, we had numerous threats every day. We are putting a lot of effort into securing clients’ data at all times,” Fioravanti noted. The bank is also integrating climate transition risks into its credit process, expanding exposures in sectors such as renewable energy and mobility, while ensuring compliance with the EU’s new Corporate Sustainability Reporting Directive.
The Dutch state, which rescued ABN Amro during the global financial crisis, has been steadily reducing its shareholding. The latest sale will cut its interest to around 20 %, potentially rekindling speculation about future takeover approaches. Any bidder would inherit a bank that remains a leader in Dutch mortgages and wealth management but is under pressure to improve returns in corporate and investment banking.
The balance between efficiency drives and robust risk management will be critical for valuation. For insurers, investors and counterparties, the credibility of ABN Amro’s risk culture is as important as its cost base.
