Operational risk is facing a renaissance and could dominate the risk agenda of financial institutions for the next decade, says Hank Prybylski, global head of financial services risk management at Ernst & Young
Firms face a much increased regulatory burden with a growing emphasis on consumer protection that chief compliance officers must match. Regulatory attention in areas such as money laundering and tax evasion is forcing improvements in transaction surveillance. And firms must also standardise their approach to defining risk culture in the aftermath of episodes such as the Libor-fixing scandal.
Meanwhile, firms must also be mindful of the cost of controls. Efficient management of compliance frameworks and the optimisation or consolidation of controls will differentiate some firms over the coming years.
Questions covered in this interview include:
More on Operational Risk
Operational risk events driving business line transformation
Hoodless and Madaras among those suspended
Focus needs to be on reacting, not stopping every threat
Keeping track of fraud and money laundering made easier through machine learning
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.