India’s banking and financial services (BFS) sector is poised to grow as the economy is expected to reach US $ 5 trillion by 2026. Experts estimate that the asset size of the banking industry grew from Rs. 152 trillion in March 2018 to Rs. 216 trillion by March 2023, with a compounded growth rate of 8.42 percent. With technological advancements, evolving business strategies, and shifting regulatory landscapes, the sector must constantly adapt to a new era.
The Reserve Bank of India (RBI) recently issued an updated guidance note to the banking and financial services sector, underscoring the importance of operational risk management (ORM). The central bank has insisted lenders improve their resilience by following a robust operational risk management program.
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The BFS sector worldwide is also on the brink of a transformative phase in operational risk management. The impact of COVID-19 has accelerated this transformation in the industry by revolutionizing enterprise operations. The pandemic also exposed vulnerabilities in risk practices and models. It became clear that these models were technologically outdated, and there was a need for a thorough reassessment of risk…
