In this issue Brendan Nelson Global Chairman Financial Services, KPMG in the UK, reflects on the turmoil of the last 18 months and the likely course the financial services industry will take. Frank Ellenbürger Head of Global Insurance, KPMG in Germany discusses the outcomes from the Reactions Global Insurance conference including how the insurance industry landscape will alter, with significant changes in risk and capital management and possibility of re-regulation of financial services.

Banks have borne the brunt of the financial crisis forcing them to take a critical look at how they manage risk. And KPMG’s research shows that, despite banks already making fundamental changes to their risk management there still appears to be a long way to go. This issue takes a close look at how risk management should be transformed and how financial services businesses should reassess their business models to survive the challenges of the changing environment.

The financial crisis has also hit Latin America but we find out how this is different for the region and how lessons learned in the past allow for a potentially more optimistic future. The interest in Islamic Finance continues to grow and KPMG takes a close look at the potential opportunities in Indonesia. Other areas discussed in this edition, include increasing fraud, challenges of cost optimization and the collapse of the housing bubble in Spain.