Enhance Risk Effectiveness by Improving Performance

The pressure is on to align the risk strategy to the growth strategy and enhance overall trust and resilience.

Let's start a conversation about getting there

The risks keeping risk managers up at night

Volatile market conditions. Geopolitical instability. Rapid innovation and technological change. Mounting compliance requirements.

Across industries, organizations are facing more threats and operating in an increasingly complex risk landscape. Risk involves balancing a plethora of fast-moving changes across the business landscape while also preparing for increased regulation.

Corporate leaders are rushing to learn more about generative AI (GenAI) and exploring ways to leverage this technology to improve the productivity of their organizations. GenAI can be a powerful tool for continuous performance improvement (CPI) by arming knowledge workers with new capabilities to increase efficiency.

Attention is growing on how organizations can strategically anticipate and proactively respond to signals, threats, and potential opportunities that position risk management as a source of competitive advantage. Keeping up with regulations also remains a critical risk-function capability.

88%

of companies will increase risk management budgets by at least 5% over the next 12 months.

Risk managers say artificial intelligence (AI)/machine learning (ML) are by far the most vital digital tools to accelerate risk management processes now and in the next 2-5 years.

Source: KPMG 2023 Chief Risk Officer Survey

Today’s CEOs are asking their risk leaders to do much more than manage back-office compliance. The pressure is on to align the risk strategy to the growth strategy and enhance overall trust and resilience.

Achieving consistent high performance is tough, especially when companies are constantly reacting to immediate pressures. As CEOs build functions that are fit for the future, they must navigate accelerating changes in technology, consumer expectations, and society itself.By consistently assessing these levers, risk leaders may

Now is the time to set your company up so that you don’t have to keep urgently putting out fires. One way is to learn how to continually assess the issues that need change so changes are continual, not a one-off.

The key is to get ahead of these pressures so leaders can focus on growing the business instead of continually shifting focus to cost cutting or transformations. They need to shape their strategy and organizations to deliver better, lasting results for all their stakeholders. Simply put, leaders need continuity in their approach.

Continuous performance improvement is about increasing productivity and efficiency in existing processes—doing things faster, better, and with less labor where possible.

CPI can involve anything from automating a repetitive process step to redesigning workflows. For example, risk leaders may eliminate redundant risk oversight functions that can be consolidated. Or figure out the ratio of time spent assessing risk versus managing it.¹By consistently assessing these levers, risk leaders may be able to reduce costs as well as create greater efficiencies.

In addition, risk leaders must meet new regulatory requirements and address an expanded risk agenda, which requires expanding risk and compliance functions and finding new tools for data analysis. They need fresh approaches that create efficiency and effectiveness. KPMG can help. We offer frameworks to analyze your risk and compliance issues with an eye on continuous performance improvement instead of reacting to the latest problems. Learn to continually assess and make changes continual, not one at a time.

KPMG can help. We offer frameworks to analyze your risk and compliance issues with an eye on continuous performance improvement instead of reacting to the latest problems. Learn to continually assess and make changes continual, not one at a time.

¹ Risk Modernization, KPMG LLP, 2023

Service

KPMG Elevate

KPMG Elevate assists clients with defining and delivering rapid EBITDA improvement using a data-driven approach to identifying, quantifying and implementing opportunities.

As a trusted collaborator, we work closely with clients throughout the entire CPI journey. Using our extensive industry knowledge and experience, we employ an integrated, cross-functional approach to effectively optimize performance, digitize processes, and drive growth even against economic volatility and rapid market shifts.