FAQs Behind Change in Risk in the Financial Industry
In this second blog of the risk management and governance series, we’re going to be answering common questions behind what has driven the changes in risk in the financial industry over the last few years. So, let’s get started…
What has driven the changes in risk in the finance industry?
Regulatory scrutiny has increased in recent years in a move to reduce risk organisation-wide through legislation that focuses on key areas of interest.
Low growth and financial pressure means there’s less money available to improve process efficiencies for the long-term.
Technology has evolved significantly. This has led to more sophisticated technology being available to support businesses in optimising their own approach to risk.
Increasing risk from external threats
External pressure from risk drivers, such as fraudulent claims, cyber-attacks and other challenges.
There’s been a real move to encapsulate risk governance across the organisation, not just at director level. Risk is being managed more and more by individuals on the ground.
What are some of the most common challenges demanding a change in organisations’ approach to their risk management?
- Insufficient data quality across disparate sources informing incomplete decisioning
- Desire for growth and increasing profitability
- Regulatory pressure e.g. IFRS 9, CECL, EBA, Solvency II and more
- Greater customer expectations
- Infrastructure modernisation
- Increasingly sophisticated fraud claims
Why choose SAS for your risk governance demands?
- A centralised approach to managing risk
- Support across the data lifecycle to ensure an optimised approach to analytics at every stage
- Timely, valuable output to inform decision makers
- Easy-to-use software which can be customised to meet your business needs.
What are the potentially damaging outcomes associated with poorly managed business risk?
- Financial loss
- Non-compliance with regulation, leading to fines
- Poor business decisions
- And potential reputational damage.
Keen to enhance your business' risk governance strategy but unsure how to progress?
Our experts are the SAS partner of choice for supporting customers in their pursuit of optimal risk governance solutions. Our team are ready to offer advice and support to overcome your business challenges - get in touch here.
For more information on risk and governance in the financial sector, click here.