future of risk enterprise: toward growth and competitive advantage in financial institutions
by Vijayaraghavan Venkatraman & Pradipta Niyogi introduction The world has changed—recent events and changing global dynamics will leave a lasting impact on all walks of life. The banking, financial sector and insurance industry is not immune to this, even more so as it forms the bedrock of financial stability while enabling global trade and commerce. Change brings risks, and governing bodies often respond retrospectively albeit in a forward-looking fashion leading to enhanced regulations and compliance obligations. Traditionally, the risk and compliance function has always been driven by protection and mitigation. However, increasing and fast-changing customer preferences, market and business model disruptions, operational stresses, geopolitical challenges and compliance needs are underscoring the need for firms to look at risk and compliance management as a catalyst for sustaining and accelerating the growth of business and its ecosystems. In this article, we examine the emerging priorities of financial institutions’ chief risk and/or compliance officers’ (CRO/CCO) functions, their response to changing imperatives, and how business strategies, processes, controls and digital technologies are being recalibrated to stay ahead of the curve.
insights In August 2021, we surveyed the risk and compliance functions of more than 60 diverse financial institutions and garnered some interesting insights.1 The CRO’s role has become increasingly broad, linking various parts of the business as well as providing a quantitative superstructure to organization strategy, operational management, and financial and actuarial analytics. Additionally, the CRO needs to focus on the impact of operational risks of new digital strategies and infrastructure as well as risks arising from data security and privacy, financial crime including cybercrime, fraud, misconduct, and culture and external partners. 1 / Future of Risk Enterprise: Towards Growth and Competitive Advantage, TCS-Chartis Survey Report For more information, please contact: pradipta.niyogi@tcs.com
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Intelligent Risk - October 2021
