The main takeaway from our Chief Risk Officer report, as well as the biggest challenge in financial services, is that cyber threats and the risk of data breaches are of top concern.
Chief Risk Officer report: Key findings and steps forward
Discover what CROs want financial services to know and actions to take.
We surveyed risk officers from 139 US FS companies to learn what worries them and keeps many awake at night. It’s the increasing threat to cybersecurity and the growing risk of data breaches. Regulatory changes also trouble financial services. The report details risk areas that can be enhanced, from risk reporting and insights to data analytics and predictive modeling. Employees, often the weakest link in cybersecurity, would benefit from training.
#1
challenge is cybersecurity/data breach
90%
anticipate an increase in risk investments in the next 12 months
38%
view regulatory and compliance issues as a top challenge in the next 2-5 years
40%
are considering outsourcing cybersecurity and data protection services
46%
would consider outsourcing risk management to reduce costs
Financial services CROs must develop a rigorous and disciplined risk agenda commensurate with operational, business, and strategic plans. This will enable them to proactively address and solve issues from a wide range of stakeholders, including investors, regulators, and customers.
Anand Desai
Principle, Advisory - Financial Services Line of Business Leader, Risk Services
Our survey found that organizations feel they can adequately address most key risk challenges, and yet are concerned about market and reputational risks. These five drivers can help transform your company’s risk management program to meet existing and new challenges.
Reduce risk exposure with AI and other tools that can reduce human errors
Drive growth/change with improved integration and collaboration
Leverage technology to better meet risk requirements and regulatory changes
Streamline processes to better deliver on risk management requirements
Reduce operational costs associated with oversight and execution of risk management
Chief Risk Officer insights in Financial Services
Dive into more detail about the challenges that chief risk officers in financial services face and recommendations by KPMG for addressing the challenges.
Download PDFDoes it make sense to outsource cybersecurity or staff up the risk management team? How do you plan for future challenges like managing an increasing number of regulatory changes? For answers to questions like these, financial institutions turn to KPMG. We understand the unique needs of the sector because that’s where we come from. Our team includes former transactors, business managers, regulators, technologists, chief compliance officers, and risk management leaders. It’s cross-functional experience combined with a technology-enabled approach. It’s how to solve real business problems and please stakeholders, investors, regulators, and agencies. Together, we can make a difference in your institution’s future.
At KPMG, we empower you to establish a resilient and trusted digital environment, even amidst evolving threats. With a unique blend of technological expertise, extensive business knowledge, and a team of passionate professionals, we are dedicated to safeguarding your business. As a prominent leader in cyber security, we excel in implementing cutting-edge security practices while developing innovative strategies tailored to your specific needs. We not only prioritize the protection of your business but also ensure a seamless delivery of services.
Our solutions assist cyber security teams in crucial areas, including:
KPMG is recognized as a leader in financial services. Take the next step and learn more about us.
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