How to stay safe, keep pace and drive growth

The CRO is seen as a member of senior management with a responsibility for sustainable value creation. Risk functions are expected to contribute to streamlining of end-to-end processes, provide actionable insights and look beyond traditional organisational boundaries.

As business and operating environments accelerate, banks strengthen risk management to keep pace. As an illustration, leading banks aim to achieve more than 50% automation of GRC processes within the next 5 years, enabling a fundamental redesign of control and assurance models.

Banks are moving beyond productivity, focusing on reimagining risk processes using GenAI. This includes next generation scenario analysis capabilities as well as digital twins creating replicas of the organisation's processes and controls. An environment within which agents operate, transforming risk and response capabilities.

Risk leadership needs to prepare for a transition to a hybrid workforce connecting humans and autonomous agents. This includes managing a fundamental transition in the Risk workforce, with a growing emphasis on soft skills such as problem solving and critical thinking complementing the expectation of “digital fluency” in data and AI.

About half of participants expect significant shifts in business and operating models over the next ten years. As such, banks are supporting societal and economic transitions and seeing climate risks as opportunities. They’re also taking practical steps to strengthen forward-looking capabilities, evolving the ERM mandate while investing in the scenario analysis toolkit.