Risk management functions in banking are facing an increasingly complex environment. According to the latest Global Risk Productivity Survey by McKinsey, teams responsible for overseeing risks must simultaneously address financial threats, cybersecurity, third-party risks, and challenges linked to climate change, while regulators demand increasingly strict control standards.  

The study—based on a global benchmark that includes more than 40 banks with average balance sheets of US$1.1 trillion—identifies four key trends that are shaping the evolution of these areas. The first is pressure to improve productivity: institutions are keeping their budgets and staffing levels relatively stable, but are redistributing resources to respond to new priorities.  

Secondly, technology (including automation and the use of advanced analytics) is transforming the way risks are monitored and managed. This frees up operational capacity and allows talent to be focused on tasks of greater strategic value. 

A third trend is the expansion of the scope of risk areas, which today must cover increasingly diverse issues, from operational risks to cybersecurity or risks associated with third parties. Finally, the report highlights the need to redefine talent within these functions, incorporating profiles with analytical and technological skills. 

Overall, McKinsey concludes that the future of risk management lies not only in strengthening controls, but also in building more technological, productive, and strategic areas capable of accompanying the transformation of the financial business. 

Fynsa 

Source: McKinsey