The report by the ESAs states that while no new risks to EU financial market stability have emerged, the risks already present have intensified. The report divided key risk factors into macro risks to the EU financial system and economy and operational risks. The report identified key macro risks as relating to: (i) low economic growth and low inflation environment; (ii) low profitability which is encouraging financial institutions and investors to search for yield which requires increased supervision on the viability of business models, related restructuring activity and adequate risk management; and (iii) continued doubts on the comparability and consistency of banks’ calculations of risk weighted assets. Key operational risks were identified as business conduct risk and IT operations and cyber risks. With regard to business conduct risk, the report recommends that supervisors should include misconduct costs in future stress tests where appropriate, financial institutions should strengthening product oversight and governance frameworks and improvements are warranted in regulatory framework and supervisory practices.