By Alon Kaufman
Where are financial institutions today along their risk management journey? In the years following the 2008 financial crisis, the average bank has spent a great deal of effort and capital ensuring compliance with new and ever-changing regulations and breaking down organizational silos. The goal for most firms since that time has been to build a better view of risk across the enterprise in order to grow the business while avoiding the next crisis.
These efforts have moved most institutions and their risk groups in the right direction. However mounting evidence suggests that even this enterprise-wide approach to risk management is failing to deliver the desired results. This has been made even more apparent of late, as the increasingly complex risk landscape has been coupled with the COVID-19 pandemic, highlighting the need for further enhancement of risk management practices and technologies. What we’ve learned throughout this entire journey is that an enterprise-wide view of risk is not wide enough—what we need is an industry-wide view of risk.
Why? Let’s take a look at financial crime risk as an example. Today, even the largest financial…
