A version of this article first appeared in the BAI Executive Report: Navigating effective risk management. You’ll find more insight within on prepping for CRA enforcement, liquidity and credit risk, the CRE outlook, fraud considerations and more.
The digital age has done a lot of good for banking, but it has also made managing risk front and center. Now, more than ever, banks must consider adopting automation and artificial intelligence (AI) to navigate digital-fueled risks that can include cyberattacks, fraud, internal software failures and system misconfigurations, to name a few.
These challenges stymie broader operations, putting executives on high alert. In fact, two-thirds of chief executive officers report that technology risk has grown significantly over the last few years, according to a survey of 750 global banking executives conducted by ServiceNow and ThoughtLab.
More than seven in 10 CEOs consider tech vulnerabilities the biggest risk their bank faces. The problem won’t resolve itself and the financial impact is growing: A staggering 64% of CEOs expect the issue to increase over the next two years. What’s more, regulators have taken notice, making tech…
