Chief Risk Officers: how to prepare for the future

December 13, 2023
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Chief Risk Officers: how to prepare for the future

In the face of multiple crises and disruptions, financial institutions are increasingly realizing the strategic importance of risk management and resilience. Chief Risk Officers (CROs) are proactively preparing for the future by undertaking various long-term initiatives. They are prioritizing the acceleration of digital transformation within their function, recognizing its potential to enhance risk management practices. Additionally, CROs are actively working to attract and retain top risk talent, understanding the critical role skilled professionals play in effective risk management.

Moreover, CROs are focused on building expertise in several key areas. This includes staying up-to-date with evolving regulations, as compliance is crucial for mitigating risk. They are also investing in cybersecurity measures to safeguard against potential threats. Furthermore, CROs are recognizing the value of analytics and digital innovation in risk management, utilizing these tools to enhance decision-making processes.

Rather than perceiving fintechs and other new market entrants as adversaries, forward-thinking risk leaders are embracing their innovative approaches. They understand the potential for collaboration and mutually beneficial partnerships with these disruptors.

Overall, CROs are taking a holistic approach to risk management, recognizing the need for a comprehensive and agile strategy in today’s rapidly changing landscape.

https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/risk-and-resilience-priorities-as-told-by-chief-risk-officers

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