While the current political environment suggests a relaxation of regulatory policy, bank executives should not take this as a sign that the risks they face are waning. Geopolitical issues, a changing interest rate environment and numerous other factors create the potential for the next downturn or financial crisis, and the C-suite must remain risk-aware and prepared to react quickly as events unfold. Here, scenario-based risk assessment remains vital in managing an institution’s risk profile and preparing for defensive action in a crisis.
Organizations must adjust their strategies to address disruption and market shifts and ensure they maintain appropriate controls and governance while doing so. Scenario-based risk management is a valuable tool to inform innovation and strategic…
