User:Hcmohr/Derisking

Derisking or De-risking is a trend being faced by a number of companies and organizations when financial institutions, mainly large commercial banks, decide to close accounts of large sectors of the economy, in order to avoid the perceived risk of keeping the accounts open. The European Banking Authority (EBA) defines it as "decisions taken by financial institutions not to provide services to customers in certain risk categories. This can leave customers without access to the financial system. De-risking can be a legitimate risk management tool in some cases but it can also be a sign of ineffective ML/TF risk management, with severe consequences". The Financial Action Task Force (FATF) defined de-risking as “the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid, rather than manage, risk”.

It is unclear when the term was first used. Google records the first use of the word in 1987-1988