By Cindy Levy, Olivia White and Hans Helbekkmo | McKinsey & Company
In a rapidly changing risk landscape, successful banks will deploy highly skilled, diverse, and agile risk organizations. The world is changing in ways that are reshaping the risk landscape. We see three inter-related changes as particularly relevant for banks. First, the digital revolution is drastically increasing the availability and use of data, and the speed at which decisions are made. Second, technological innovation is accelerating changes in the competitive and customer landscapes. Finally, hyper-connectivity is escalating the pace of information flow and reshaping how people think and act.
“Deciding on the risk management approach Given how quickly the world can change, banks need more agile governance processes and approaches to risk mitigation and controls. They need to answer three questions:”
“Finally, bank leadership teams will need to enhance decision quality with new levels of insight, challenge, de-biasing, and speed.”
Want to stay updated about everything related to PRIMO & developments in Risk Management? Sign up for our Newsletter.