The focus of financial institutions has long been on customers, profit and growth. Risk management has often been seen as a necessary burden.
Now, in the aftermath of the pandemic, the supply-chain crisis and other global challenges, there is no better time to turn the tables and put risk management first. When this is done right, customers, profit and growth will follow.
Modernizing the risk approach is foundational to modernizing the enterprise—and vice versa. With technology underpinning the foundation of every bank, it has become increasingly clear that technology risk and business risk can no longer be kept separate. It would be easy if this change could be done at the top, but regardless of an individual or group’s role, every banker needs to be a risk officer.
With risk management, it has become all hands on deck—everyone must be engaged because everyone is responsible. The most successful banks make risk a priority across the organization by making it easy to vocalize, share and even own risk. This mindset requires a holistic approach that works across the silos that have long plagued banking. It necessitates a foundational shift that can’t happen overnight.
With this…
