Rethinking the risk function

Today’s risk landscape is undergoing a significant transformation, driven by a combination of performance pressure, evolving capabilities, shifting stakeholder expectations, and the rapid advancement of digital technologies. These changes are pushing organizations to rethink how they manage risk — not just as a control function, but as a strategic enabler.

There is a growing need to build risk functions that are agile, sustainable, and cost-efficient, capable of creating long-term value while navigating uncertainty. Traditional compliance-driven models are no longer sufficient. Instead, organizations are expected to embed risk into strategic decision-making, aligning risk management with business objectives.

By leveraging data-driven insights, advanced analytics, and more agile operating models, modern risk functions can proactively anticipate emerging threats, respond faster to disruptions, and enhance transparency and accountability across the four lines — spanning frontline operations, second-line control functions, internal audit, and external regulatory expectations.

Leading organizations across sectors are already taking steps to transform their risk functions. They are moving toward more integrated, forward-looking approaches that not only manage risks at the process, project, and strategic levels, but also support innovation, strengthen resilience, and build stakeholder trust.

Ultimately, rethinking the risk function is about turning risk into a source of insight and competitive advantage — ensuring organizations are prepared for the challenges of a fast-changing, complex world.