Credit risk, ESG and cybersecurity are the trio of risk types that risk executives at financial institutions perceive as increasing the most in importance for their business over the next two years, out of a field of 16, according to a new survey out today from Deloitte. This is part of an in-depth survey report focusing on the risks – both current and future – challenging financial institutions, which we release every two years.
Highlights from the report include:
- 94 percent of respondents expected that the regulatory requirements on their institutions will increase over the next two years, with 31 percent expecting a significant increase.
- Although regulators have widened their focus to include nonfinancial risks in stress tests, only 38 percent of institutions reported conducting stress tests for nonfinancial/operational risk.
J.H. Caldwell, Risk Advisory Leader for Deloitte’s Financial Services Practice globally, said, “digital risk should be one of the biggest singular risks financial institutions should be thinking about … With that comes risks, though, and – in some cases – institutions have to be careful about losing sight of the risks that come with new uses of technologies and focus on building the right control platform to go with them.” In some ways, financial institutions are underleveraging technologies as well.
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