Multifaceted Risks Facing Financial Services

The dynamic landscape of risk and control leadership within the financial services sector demands a nuanced understanding of emerging challenges and strategic responses. In this comprehensive report, we delve into the multifaceted dimensions of risk, regulation, and control, providing key insights drawn from a global survey of 88 financial institutions across 30 countries. Our findings unveil the top risk priorities, presenting a comprehensive view of the intricate interplay between cyber threats, credit risks, environmental concerns, regulatory changes, geopolitical tensions, and the rise of digital assets. Our exploration begins with an analysis of the top risk concerns, where cyber threats and environmental risks emerge prominently.

Cybersecurity risk, operational resilience, and the transition to digital strategies assume the spotlight, with a detailed breakdown of the percentage of respondents choosing each priority. The whitepaper navigates through critical areas, such as credit risk, environmental/climate risk, regulatory implementations, and the implications of geopolitical instabilities. highlighting the pivotal role of talent pipelines, growth evaluations, and cultural awareness in shaping resilient organizations.

Download the full report to gain in-depth insights into the evolving landscape of risk and control leadership, understand the pressing challenges faced by financial institutions, and access strategic recommendations to navigate an increasingly complex operating environment.
In this whitepaper

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Author

Jamie Souter
Partner

Author

Adam Hunter
Partner

Contributors

Jamie Souter

Partner, The Omerta Group

Amber Wood
Associate, The Omerta Group
Jamal Henry
Partner, The Omerta Group
Adam Hunter
Partner, The Omerta Group
Mathew Morton
Associate, The Omerta Group

Key Insights

Amplified Risk landscape

The chart delineates the ‘Top Risk Priorities for the Next 12 Months,’ offering insights from a global survey encompassing 88 financial institutions across 30 countries. Cybersecurity, digital transformation, climate risk, and geopolitical challenges emerge as pivotal concerns, with leaders anticipating a complex interplay of these risks. The ability to strategize and execute effective responses becomes a linchpin for success in this intricate risk landscape.

Strategic imperatives

Two critical risk domains, Cybersecurity and Credit Risk, take center stage as leaders navigate the intricate web of challenges. The surge in cyber threats and the intricacies of credit risk amidst geopolitical uncertainties underscore the imperative for organizations to fortify their defenses and scrutinize lending practices. Understanding the evolving dynamics of these risks is essential for resilience and sustained success.

Operational Resilience and Future Focus

Digital transformation introduces new dimensions of risk, prompting an intensified focus on operational resilience. The advent of ‘The Digital Operational Resilience Act’ and the accelerating adoption of emerging technologies necessitate a delicate balance between innovation and risk control.

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Insights

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