Defining the risk function’s sphere of control
December 3, 2019
December 3, 2019
In the 10 years that Accenture has surveyed financial services risk leaders, we’ve seen them respond to complex post-financial crisis regulations, defend against increasingly sophisticated fraud and financial crime attacks, and tackle business-crippling cyber-attacks.
But changes in today’s risk environment are moving with unprecedented speed. New threats are difficult to untangle and address. Accenture’s 2019 Global Risk Management Study finds that, despite a decade of addressing evolving changes, risk leaders face a bar higher than ever.
In a volatile, fast-paced climate, risk managers should have a clear view of the factors they can influence and the assets they should protect. This is their sphere of control.
Of the risk executives we surveyed, 72 percent say complex, interconnected new risks are emerging faster than ever. Risk leaders cite these top three challenges:
Risk managers should keep pace with rapid change. But some of the potential solutions might bring new risks. Others offer more straightforward answers.
One concern for risk leaders involves new technologies.
Users of smart technology such as machine learning (ML) report better risk readiness.
Financial firms see potential value in new data sources.
Collaboration can mean better risk mitigation—and added value.
Complex, interconnected risks are multiplying faster than ever. For risk leaders it is impossible to be fully in control in this environment. What can they do?
We recommend clearly defining factors within the risk function’s control and designating assets that should be protected. This is a risk leader’s sphere of control. Leaders who define their sphere are better prepared to anticipate, assess and mitigate new threats—and should be ready when risk strikes.
About the Authors
Do banking risk teams need a fresh approach to manage the threats unleashed by emerging tech, open banking and relentless competition? Read more.
See how new tech, LIBOR retirement and regulatory pressure have transformed dormant risks into real threats for capital markets risk leaders. Read more.
Learn how insurance companies are braced for unknown consequences of new tech, aggressive competition and changing client expectations. Read more.
With interconnected risks accelerating faster than ever, how can risk functions keep up? Our 2019 Global Risk Management Study provides insights to help functions prioritize, prepare and proactively scan the horizon for the next threats.
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What top-line risk trends did our Global Risk Management Study identify? See our presentation for highlights.