Solvency II

A regulatory authorisation granted to financial technology companies permitting them to offer specific financial services such as payments, lending, investment management, or insurance. Licencing requirements vary by jurisdiction and activity — in the UK, the FCA regulates fintech firms under frameworks including the Payment Services Regulations, the Electronic Money Regulations, and the FCA Regulatory Sandbox.

An international regulatory framework developed by the Basel Committee on Banking Supervision that sets minimum capital requirements, leverage ratios, and liquidity standards for banks. Basel III was introduced in response to the 2008 financial crisis and requires banks to hold higher-quality capital (primarily Common Equity Tier 1) against risk-weighted assets, including operational risk and market risk.

The framework of policies, procedures, and organisational structures that guide the responsible development, deployment, and monitoring of artificial intelligence systems. AI governance encompasses risk management, ethical guidelines, regulatory compliance, model validation, and accountability mechanisms.

A quantitative rating assessing a company's performance and risk exposure across environmental, social, and governance criteria, typically assigned by specialist rating agencies such as MSCI, Sustainalytics, and S&P Global. ESG scores increasingly influence investment decisions, cost of capital, and regulatory compliance, and are becoming a material factor in business valuations and due diligence.

A framework for evaluating a company's performance across environmental impact, social responsibility, and corporate governance practices. ESG factors are increasingly material to valuation, investor mandates, and regulatory compliance, and intersect with intangible asset categories such as reputation and organisational capital.

The framework of policies, standards, and processes that ensures data assets are managed consistently, securely, and in compliance with regulations throughout their lifecycle. Strong data governance increases the reliability and value of data as an intangible asset, directly supporting analytics, AI applications, and data monetisation strategies.

The principle that data is subject to the laws and governance structures of the country in which it is collected or stored. Data sovereignty requirements affect cloud computing architecture, cross-border data transfers, and vendor selection, particularly in light of GDPR restrictions on transfers to countries without adequate data protection standards.

A visual and analytical framework that reconciles the difference between two valuations — typically entry and exit, or book value and market value — by attributing value changes to specific drivers such as revenue growth, margin improvement, multiple expansion, and intangible asset creation. Value bridges are widely used in private equity reporting and portfolio company management.