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The evolution of non-financial risk

Adapting risk management practices to prepare for future non-financial risks.

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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, organizations find themselves navigating a changing terrain. As the next few years promise accelerated change amid digitization, 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, emphasizing 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 organizations 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:

Discover how convergence and integration across risk types and business functions are imperative in addressing the increasing complexity of today's organizations.

Learn strategies to ensure RMFs are dynamic, relevant, and efficient in responding to shifts in the internal and external environment.

Understand the significance of automated risk Management Information (MI) in quantifying and reporting NFR, reducing manual efforts, and enhancing decision-making organizations.

Explore the importance of Integrated Risk Management (IRM) ecosystems and Governance, Risk, and Compliance (GRC) systems in accelerating effective decision-making through centralized controls and automated workflows.

Delve into the transformative potential of Intelligent Automation (IA) in addressing NFR. IA is not a replacement for human resources but a collaborative tool for optimal risk management outcomes.


Delve into the transformative potential of Intelligent Automation (IA) in addressing NFR. IA is not a replacement for human resources but a collaborative tool for optimal risk management outcomes..


The evolution of non-financial risk

Adapting risk management practices to prepare for the future.

Office laptop, diversity and business people reading online report, website design feedback or research project. Collaboration, staff mentor and team designer working on company homepage development.

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                                                                     Our people

Fabiano Gobbo

Global Leader – Risk and Regulatory Advisory

Italy

Roger Acton

Director, Banking Risk

KPMG in the UK

Narinder Singh

Partner

KPMG in the UK


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