In today's demanding economic climate, organizations, especially in regulated sectors like finance, are under pressure to balance effective risk management with cost control. However, traditional cost-cutting methods often fall short of delivering lasting results. Recognizing this challenge, the latest KPMG International paper, "Cost transformation in risk," provides practical strategies for striving to reduce risk management expenses while maintaining quality.
The KPMG Global Risk and Compliance Benchmark reveals that while many banks intend to increase spending on personnel and operations in 2024, a significant number also aim to cut costs, indicating a need for efficiency in risk management expenditures.
Achieving significant cost reductions requires a strategic approach that goes beyond budget cuts. Organizations should identify factors driving expenses and develop targeted strategies to help streamline operations. Demonstrating incremental savings is crucial for maintaining momentum and carefully evaluating cost reduction levers, such as outsourcing and process simplification, is key. These initiatives should align with a detailed risk transformation strategy.
KPMG professionals are adept at guiding organizations through the complexities of risk management transformation, including cost efficiency initiatives. This approach aligns cost reduction efforts with broader organizational goals and utilizes innovative digital solutions to help achieve sustainable results. By addressing cost drivers and implementing targeted strategies, organizations can enhance their risk management processes while realizing significant cost savings.
For deeper insights and to fortify your organization's resilience in an ever-changing world, download the full paper.
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