Not only do firms face a tough, constantly evolving regulatory landscape; new emerging risks such as cyber attacks arguably make this the most challenging environment ever. While regulatory considerations remain a key driver of risk management, financial services firms are under pressure to recalibrate their strategy to focus on new, emerging threats.
In December 2016 and January 2017, SAI Global, in association with Risk.net, conducted a global poll of financial services companies, speaking to senior management as well as specialists in the risk, compliance and legal functions about current trends in risk management and governance.
64.8% cited increasing focus and audits from regulators as a primary driver of operational risk priorities. 45% believed increased interest from the board due to new/emerging technology risks was the biggest change in operational risk management within their organisation over the past 12 months.
19.4% placed increased interest from the board due to high-profile operational risk failures and scandals linked to misconduct as the biggest change in operational risk management within their organisation over the past 12 months. 32% cited cyber security as the biggest challenge for operational risk in their organisation for the next 12 months. The survey results suggest that many firms are looking to enhance their software and systems during 2017 as they attempt to better face up to the rising tide of risk.