For a financial services chief risk officer (CRO), these are challenging times. Regulators want increased detail around each potential threat. Managing risks and meeting regulatory requirements is difficult—and emerging risks are compounding the challenge. New threats from social media and cyber risk are rising. According to Accenture’s 2015 Risk Management Study, 82 percent of surveyed CROs say emerging risks are requiring more of their time and attention. To top it off, financial organizations are demanding increased operational efficiency from their risk functions, pushing CROs toward shuffling more responsibilities than ever before.
Effectively addressing these challenges may mean taking a new approach. For CROs, the answer might lie in an integrated solution.
An integrated approach to risk management can significantly help the risk function, and the CRO, move forward. But integration isn’t always a simple thing. We have identified four barriers that can present challenges when building a holistic approach:
A more integrated approach can alleviate many of these concerns, while also making the risk function—and the CRO—more effective at managing risk. A more integrated approach means marshalling resources to design new approaches in these core areas:
How can CROs gain with a more integrated risk assessment approach? They’ll boost the effectiveness of controls, while also bolstering the lines of defense through improved collaboration.
But a truly integrated approach delivers more. Notably, risk management resources may be used more efficiently, and cost savings can be achieved. Reinvesting that time and money into the overall risk management framework can help an organization better prepare for emerging risks. Better, sharper insights into risk can happen across the risk organization, including insights into how interdependences can complicate or improve a risk scenario. The insights captured can help the business make better decisions across the board, thanks to a more intuitive understanding of its own risk profile.
For more information on building a holistic, integrated approach to risk management, read the full report.