This article was written by Mark Watson, EY Americas (see original). It is based on a study from EY and IIF (Institute of International Finance) and has been published as the tenth annual EY/IIF global bank risk management survey.
We highlight the 10 major risks that will require management, enduranc e and survival techniques.
Financial risks will always be cause for concern in banking. But, today banks are much better positioned in terms of capital and liquidity. They have greatly de-risked and de-leveraged their balance sheets and pruned back non-core assets and operations that were amassed in the years before the financial crisis. Now, nonfinancial risks have taken on new levels of importance.
For the past decade, the global banking community has been on a transformational journey. However, managing risk over the next decade could prove to be much more challenging.
For 10 years, EY and the Institute of International Finance (IIF) have been observing and reporting on changes in how banks manage risk. Chief risk officers (CROs) and their teams are being asked to manage a much broader and complex set of continually evolving risks and play a more influential role in helping banks thrive and survive.
Our survey identifies 10 significant risks that will require strong management over the next decade.