As we step into 2024 and look beyond to the future, financial institutions must gear up to tackle new financial risk challenges and capitalize on emerging opportunities.
We’ve identified the most relevant and critical trends in financial risk management that are poised to shape the industry next year and beyond.
Optimizing the “Division of Labor” in the Age of Intelligent Automation The growing adoption of intelligent automation to enhance operational efficiency in the risk management processes will enable routine tasks to be automated via digital workers, freeing up valuable human resources to focus on strategic decision-making.
Embracing the Cloud: Crossing the Technology Adoption Threshold Cloud computing is imperative for financial institutions striving for scalability, flexibility and cost-effectiveness in their risk management processes. Those lacking a well-defined cloud strategy will risk becoming “Laggards.”
Incorporating Climate Risk Assessment: Moving Beyond Table Stakes Recognizing climate change as a systemic risk to the financial industry is hardly a new theme. Most financial institutions now incorporate physical and transition risk assessment into their risk management framework. But we’re just at the beginning.
Complying with New Regulations: A transformative shift for technology solutions How will financial institutions evolve to handle the need for enhanced data collection, analysis and reporting in addition to transitioning from a periodic to a continuous monitoring approach? A transformative shift in approach is needed.
Combating the Emerging Unknowns: Analyzing new forms of data with Advanced Analytics The continued growth in data science and AI will transform risk management. Leveraging unconventional data, such as social media sentiments or alternative financial indicators, provides a more nuanced understanding of emerging threats.