In the ever-evolving landscape of financial services, the significance of non-financial risk (NFR) management has become increasingly vital. Over the past fifteen years, marked by revolutions in service delivery, operational practices and the paramount importance of trust, organisations find themselves navigating a changing terrain. As the next few years promise accelerated change amid digitisation, geopolitical shifts, AI adoption and complex workforce dynamics, proficiency in NFR management emerges as a critical factor for responsible operation and prosperity.
Defined broadly as all risk types excluding credit, market, interest rate, and liquidity risk, NFR encompasses operational, regulatory, environmental, social and governance risks. Ineffective management of these risks has led to substantial losses across industries, emphasising the need for enhanced risk practices. Looking forward, NFR is poised to remain a focal point for regulators and businesses, with stakeholders demanding transparency and accountability.
KPMG International’s latest paper addresses the imperative for organisations to equip themselves with the tools and resources necessary for resilience against emerging risks and innovation in risk practices, focusing on five key elements for futureproofing:
