In an era marked by constant disruption, the role of risk management in banking is evolving rapidly. To navigate this landscape, Chief Risk Officers (CROs) are no longer just compliance overseers; they are strategic guides steering organizations toward resilience and opportunity. Here’s a closer look into the forces shaping the future of risk in banking, as explored in KPMG's extensive research.
Key drivers of the evolving risk landscape
A roadmap to the future of risk management
- Risk identification
- Risk measurement
- Risk monitoring, control, and reporting
- Data and infrastructure
Banks must implement mechanisms for rapid identification of emerging risks, assess their interdependencies, and use proactive, scenario-driven evaluations to address disruptive events effectively and safeguard operations.
Dynamic risk assessment frameworks must combine qualitative and quantitative methods, implement cross-risk stress testing, and leverage integrated simulation tools for enterprise-wide evaluation of threats and opportunities.
Advanced monitoring requires enterprise-wide collaboration, AI-driven solutions for efficiencies, and enhanced reporting systems that focus on actionable insights and alignment with regulatory demands.
Effective risk management hinges on clean, integrated data from modernized systems, addressing legacy fragmentation and allowing scalable technologies like AI to unlock valuable insights critical for resilience and compliance.
Transform risk into opportunity
For risk leaders ready to embrace the future, this paper delivers some of the knowledge and tools necessary to help navigate today’s complex challenges. Explore how to turn risk into an opportunity for value creation and align your organization with the demands of the modern risk environment.
