Financial Services Ireland

Risk management is changing – Act now

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Risk management is changing – Act now

Risk management cannot operate as it is. Radical changes are needed to ensure efficiency and reduce costs. It is time for transformational change and there are difficult choices to be made. Banks that dare will win.

In this publication, EY looks at how the risk function needs to change in line with new pressures on cost, compliance, and greater regulatory scrutiny. Risk transformation programmes should align the strategic objectives of the firm with business functions to achieve standards above basic regulatory compliance. Implementing risk transformation programmes will be an ongoing process. It will be technology intensive, requiring a significant commitment of resources and senior management time.

This brochure looks at the ART (assess, rationalise and transform) of risk management and risk transformation and is aimed at CROs and senior risk leaders across EMEIA BCM.

Highlights:

  • As the move beyond universal banking becomes inevitable, the most obvious owner of the risk transformation agenda is CRO. But implementing the new risk organisation places fresh demands on the CRO’s role.
  • The risk function must operate differently. Better risk management means better collaboration and the magnitude of risk change required will demand a clear path to an agreed upon target state.
  • Banks need to think beyond incremental change by applying robust transformational principles that will transform the business and advance risk management.
  • Plans and commitments to deliver the new risk organisation are no longer theoretical or nice to have. They will represent a fixed contract between a bank and its regulators.

Please click the link below for the full document. If you have any questions on any of the points raised in the study or any other aspect of risk transformation, please do not hesitate to contact me.

Patricia Stack

Operational Excellence, Solution Leader
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