More Related Content Similar to Accenture 2015 Global Risk Management Study: Banking Report Key Findings and Insights (20) Accenture 2015 Global Risk Management Study: Banking Report Key Findings and Insights3. Key challenges Signs of growth
5 key priorities
Risk Management in the Banking Sector
Bank respondents to the Accenture 2015 Global Risk
Management Study face 3 key challenges:
1 2 3
Tough
economic climate
Demanding
regulations
Competition from
digital innovators
41%
79%
14%
of respondent banks have higher risk
appetites for new product development.
think risk functions play a critical/important role
in enabling growth.
say they have achieved fully risk-based decision-
making.
1 2
3 4
New relationships
Risk management as an enabler to the business.
22%
of bank respondents
say risk and
finance work on
corporate strategy.
21%
say the CRO has very
frequent dealings with
the CIO and CTO.
Talent gaps
The war for specialized risk talent to intensify.
83%
of banking
respondents to grow
investment in risk
management capabilities.
37%
say understanding cyber
risk is a capability that
will be most in demand
in their risk function.
Operational risks
Driven by changes in the commercial landscape.
65%
of respondents expect
cyber risk to become
more severe.
59%
see strategic
risks increasing.
Robust risk culture
Respondent banks struggling to embed enterprise-wide.
11%
say they have
a consistent
risk culture.
37%
believe human
nature is stopping
this from happening.
5
Data and analytics
Low usage among surveyed banks.
9% say risk analytics is integrated
with strategic decision-making.
22% expect this integration
to occur in two years’ time.
75% have used analytics to address
business and market risks.
For more information, please visit: www.accenture.com/riskstudy2015
Source: Accenture 2015 Global Risk Management Study – Banking respondents
© 2015 Accenture. All rights reserved.
4. 61%
of risk masters
believe their risk
function can play
a critical role in
enabling
profitable growth.
54%
of risk masters
believe they can help
enable this growth
“to a great extent”.
35%
of non-masters
report
the same view.
Around 1 in 10 respondents to the
Accenture 2015 Global Risk
Management Study are “risk
masters”.
10%
61%
of risk masters agree
strongly that emerging
risks, such as cyber and
digital, are consuming a
greater proportion of the
CRO’s time.
35%
of non-risk
masters feel
strongly
about this.
61%
of risk masters agree
strongly that they
employ dedicated
technology specialists
to help manage digital
risk.
27%
of non-masters feel
the same.
Stronger focus on profitable growth
Stronger focus on emerging risks Growing digital experience
For more information, please visit: www.accenture.com/riskstudy2015
Source: Accenture 2015 Global Risk Management Study – all respondents
What makes a risk master?
© 2015 Accenture. All rights reserved.
Better handle on regulatory and compliance
More extensive use of analytics
37%
of risk masters
believe strongly that
regulatory change is
receding in relation to
other requirements.
25%
of non-risk
masters see
regulatory
change receding
in the same way.
36%
of non-masters
feel the same.
More risk masters make extensive use of analytics to manage key risk categories
including
fraud and financial crime, cyber and IT risk, and credit, market and regulatory
risks.
Risk masters are also more likely to be investing heavily in digital technologies.
6. 6
Contents
Copyright © 2015 Accenture All rights reserved.
A Our methodology
B Understanding the evolving environment
and context for risk management
1. Build relationships between risk management and other
areas of the bank
2. Invest in talent
3. Manage operational risks effectively
4. Cultivate a consistent, resilient and integrated risk culture
5. Accelerate adoption of analytics
C Bridging the gap
8. 4th iteration of our Global Risk
Management Study (2009, 2011, 2013)
2015 Global Risk Management Study:
Paths to Prosperity
For the 2015 study, we surveyed
470 CFOs, CROs, CEOs, CCOs and
CDOs involved in their
organization’s risk decisions
Our respondents came from North
America, Europe and the Asia
Pacific regions
The survey focused on three
industry sectors: Banking, Insurance,
Capital Markets
In addition to the survey we conducted
50 qualitative client interviews
Introduction
Copyright © 2015 Accenture All rights reserved. 8
9. 9
2015: Paths to Prosperity
9
Risk management continues to
make a crucial shift but choices
need to be made.
Seen as a collaborative partner to
enable business goals instead of
a controlling function to be
circumnavigated.
Copyright © 2015 Accenture All rights reserved.
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
10. We surveyed 470 C-suite officers across geographies and 12 countries
Study demographics
Copyright © 2015 Accenture All rights reserved. 10
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Country Geography Regional target Respondents
Australia
Asia
Pacific
150
30
China 30
Hong Kong 30
Japan 30
Singapore 30
UK
Europe 170
50
Germany 30
France 30
Spain 30
Italy 30
USA North
America
150
100
Canada 50
Total 470 470
Company size Total
Between US$1bn and US$5bn 235
Revenues over US$5bn 235
Total 470
Respondent Total
Chief Risk Officer 141
Chief Executive Officer 78
Chief Financial Officer 147
Chief Compliance Officer 28
Chief Operations Officer 31
Chief Data Officer/CIO 45
Total 470
Sectors Sector count Asia Pacific Europe North America
Banking 150 50 50 50
Capital Markets 170 50 70 50
Insurance 150 50 50 50
Total 470 150 170 150
12. Figure 1: Change in senior management’s appetite for risk
Section 1:
The new environment and context for risk management
Copyright © 2015 Accenture All rights reserved. 12
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Banking respondents have the greatest risk appetite for
new product development
• Also trending are greater risk appetite for growth and
expansion showing higher trend in mergers and
acquisitions, and joint venture risk appetite
• Higher risk appetite for digital transformation
technologies
Actions to Consider
• Integrate risk fundamentals across major corporate
initiatives
• Help strike the right balance between capital, risk and
return by positioning risk as a value-adding discipline
• Expand the reach of risk and risk data utilization to now
encompass sales and marketing
Greater risk appetite
13. Figure 2: Senior management’s approach to delivering regulatory change
programs
Section 1:
The new environment and context for risk management
Copyright © 2015 Accenture All rights reserved. 13
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Overall, the position of risk management within
surveyed banks is strengthening
• However, nearly two-thirds are primarily focused on
regulatory compliance
• Currently, there is increasing interest in gaining better
return from compliance activities
Actions to Consider
• Invest in the digital technologies that can help provide
new opportunities for both basic compliance
efficiencies, as well as the aspiration to go beyond
compliance functions
• Leverage compliance data to help provide greater
insight – via a virtuous cycle – improve or automate
processes and free up time for strategic activities
14. Figure 3: How senior management goes beyond regulatory compliance
Section 1:
The new environment and context for risk management
Copyright © 2015 Accenture All rights reserved. 14
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Nearly 60% of banking respondents reported that
senior management goes beyond regulatory
compliance
• Of these respondents, most report that it is used to
reorganize operating models to pursue strategic
business imperatives
• Overall, risk management is growing in maturity
Actions to Consider
• Assess where the risk function can proactively use its
influence in the business
• Focus development on “license to operate” issues, and
shift attention away from purely standalone regulatory
issues
• Topics may include geographic expansion, mergers
and acquisitions, and new product development
opportunities
15. Figure 4: Statement that best describes the stage of maturity of the
bank’s risk-based decision-making
Section 1:
The new environment and context for risk management
Copyright © 2015 Accenture All rights reserved. 15
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Bank respondents showing a fairly defensive position
as they continue to focus primarily on addressing
regulatory risk rather than adopting risk-based
decision-making
Actions to Consider
• Provide oversight across the business and “join the
dots” between strategic plans from different parts of the
organization
• Mirror the digital change impacts in the industry and
encourage an agile risk function that can adapt to the
pace of changes in the industry
9%
19%
22%
11%
20%
17%
14%
22%
27%
39%
1 2 3 4 5
Risk management
primarily focused on
regulatory needs/
license to operate
Risk management
mainly focused on
regulatory needs/
license to operate, but
some focus on broader
strategic risks
Fully risk-based
decision making with
strategic risk
management inputs
for major decisions
Today Two years’ time
17. To keep pace with industry challenges, urgent action across five
key areas should be considered
Bridging the gap
Copyright © 2015 Accenture All rights reserved. 17
Build
relationships
between risk
management
and other
areas of
the bank
Invest
in talent
Manage
operational
risks
effectively
Cultivate a
consistent,
resilient and
integrated risk
culture
Accelerate
adoption of
analytics
1 2 3 4 5
18. Figure 5a: Statement that best describes the stage of maturity of the bank’s risk
and finance interactions
Priority 1:
Build relationships between risk management and other
areas of the bank
Copyright © 2015 Accenture All rights reserved. 18
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Only a minority of banking respondents work closely
with finance to develop risk models
• Similarly, only a minority of risk executives contribute to
corporate strategy
• The largest gap between current and target behavior
lies in collaboration on corporate strategy and
Enterprise Risk Management steering activities
Actions to Consider
• Promote risk management as an enabler of business
goals, while maintaining a degree of challenge
between risk and other leaders
• Collaborate from onset on setting business objectives
• Leverage the most frequent interaction in the
C-suite – with the CEO – to help integrate across
the bank
Today Two years’ time
Finance and risk leaders do
not jointly provide input into
corporate strategy and
ERM (Enterprise Risk
Management) steering
Finance and risk leaders
have a close working
relationship, but do not
jointly provide input into
corporate strategy and
ERM steering
Finance and risk leaders
may at times be in
opposition on some issues,
but have a close working
relationship with both
providing input into
corporate strategy and
ERM steering
19. Figure 5b: The extent to which risk management has contributed to the
organization achieving the following
Priority 1:
Build relationships between risk management and other
areas of the bank
Copyright © 2015 Accenture All rights reserved. 19
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• According to banking respondents, the largest gap in
current/future collaboration between risk management
and finance lies in coordinating the development and
maintenance of risk and capital models
• Overall, there are aspirations for risk and finance to
collaborate on models that drive day-to-day business
decision making
Actions to Consider
• Start by assessing how day-to-day business decision
making around risk and capital models can become a
collaborative function
• Validate data and application of tools and processes
across both risk and finance
• Identify the key differences in perspectives and
reporting that drive decision making
Today Two years’ time
Risk and capital models are
developed largely
independently within the
risk and finance functions
Risk and finance coordinate
closely on the development
of risk and capital models,
but the outputs of these
models do not drive day-to-
day business decisions
Risk and finance coordinate
closely on the development
and maintenance of risk
and capital models, which
are used to drive day-to-
day business decision
making
20. Figure 5b and 5c: The extent to which risk management has contributed to the
organization achieving the following
Priority 1:
Build relationships between risk management and other
areas of the bank
Copyright © 2015 Accenture All rights reserved. 20
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Overall, the integration of risk and finance data sources
is in progress with additional organizational resources
being considered
• However, this integration is expected to decline slightly
in two years
• Large gap exists in current versus target use of
integrated data sources and other common resources
Actions to Consider
• Create an objective to make interaction between risk
and finance more seamless
• Prioritize speed and flexibility in the organization,
driven by risk and finance working together dynamically
• Continue to look forward, to keep pace with the velocity
of change; target strategic planning to support better
decision making
Today Two years’ time
Risk and finance data are
maintained separately and
other resources and
capabilities (e.g. modeling,
IT) are not used
Integration of risk and
finance data sources is in
progress, and other
organization resources and
capabilities are being
considered
Risk and finance use
integrated data sources,
and other organization
resources and capabilities
are used to enhance
efficiency
Risk and capital models are
developed largely
independently within the
risk and finance functions
Risk and finance coordinate
closely on the development
of risk and capital models,
but the outputs of these
models do not drive day-to-
day business decisions
Risk and finance coordinate
closely on the development
and maintenance of risk
and capital models, which
are used to drive day-to-
day business decision
making
21. Figure 6: The extent of the interaction between the CRO’s organization and other
executives
Priority 1:
Build relationships between risk management and other
areas of the bank
Copyright © 2015 Accenture All rights reserved. 21
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Of all the surveyed C-suite executives, the CRO is
most likely to interact with the CEO and CSO
• Interactions with the CCO are also frequent
• Board interaction ranks the highest in very frequent
interactions
• Interactions with the CMO are among the least
frequent
Actions to Consider
• Continue to build on the progress of risk from a purely
defensive role to a more collaborative business
relationship role
• Look to build stronger relationships with the CMO and
broader commercial functions
• Social media risk is a significant area of upcoming
challenge where CROs need to work closely with the
CMO
43%
25%
38%
20%
40%
24%
49%
25%
43%
28%
39%
21%
50%
25%
47%
37%
33%
24%
27%
47%
Very frequent Quite frequent
22. Figure 7: Rating the importance of the risk function as a means of achieving
the following
Priority 2:
Invest in talent
Copyright © 2015 Accenture All rights reserved. 22
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Top areas of importance among banking respondents
include enabling long-term profitable growth and risk-
adjusted performance management
• Compared to two years ago, the importance of
managing liquidity, capital allocation and reputation
management have all dropped
Actions to Consider
• Acknowledge that recruiting for skills that are broader
than core risk management capabilities will be
imperative and a challenge
• Consider core training and cross-training for innovation
and creative skill sets for existing risk professionals
75%
73%
79%
65%
67%
73%
84%
75%
100%
73%
75%
75%
83%
78%
73%
75%
79%
79%
79%
71%
2015 2013
23. Figure 8: The extent to which risk management has contributed to the
organization achieving the following
Priority 2:
Invest in talent
Copyright © 2015 Accenture All rights reserved. 23
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• According to banking respondents, risk has a more
strategically important role to play in managing the
increasing volatility of the economic and financial
environment
• Risk plays a significant role in enabling long-term
growth and improving capital allocation
• Most notable decline among respondents has been
infusing a risk culture in the organization
Actions to Consider
• Tie together the skill sets required to execute in a
greater risk agenda, within the context of a more
integrated risk and finance relationship
• Look to build connectivity beyond the finance
organization to work collaboratively to bridge the gaps
in existing and target capabilities
• Maintain the high level of core risk skills to maintain
current levels of contribution
84%
77%
83%
76%
81%
77%
95%
80%
84%
80%
73%
81%
86%
81%
78%
81%
81%
81%
83%
75%
2015 2013
24. Figure 9: Statement that best describes the stage of maturity of the bank’s
talent management
Priority 2:
Invest in talent
Copyright © 2015 Accenture All rights reserved. 24
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Internally, over a third of bank respondents say their
risk teams have a lack of key skills, such as
specialized modeling and emerging risks
• Only 13% say they have the internal resources,
including specialty skills, but respondents hope to
nearly double this in two years’ time
Actions to Consider
• Investment in understanding new technologies for risk
functions may need external resources; technology
advances may be at a faster pace than a bank’s ability
to train its staff
• Understand the impact of unstructured data in new
modeling and surveillance activities
Today Two years’ time
The risk team has
insufficient talent resources
to carry out the functions it
is asked to perform
The risk team lacks internal
resources in some
specialized areas
(modeling, emerging risks)
The risk team has internal
resources even in
specialized areas
(modeling, emerging risks)
25. Figure 10: The expected change to the total level of investment in risk
management capabilities in the next two years
Priority 2:
Invest in talent
Copyright © 2015 Accenture All rights reserved. 25
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Most bank respondents expect to increase their
investment in risk capabilities between 0-20%
• Nearly a quarter of the banks surveyed expect a
significant increase (>20%) in their total investment in
risk management capabilities
Actions to Consider
• Target investments to match the areas of key concern:
– Cyber risk
– Emerging digital technologies
– Analytics
– Social media
13%
60%
51%
0%
14%
0%
0%
35%
3%
23%
2015 2013
26. 37%
33%
30%
29%
26%
25%
23%
19%
15%
13%
Figure 11: The skills and capabilities that will be most in demand by the risk
management function
Priority 2:
Invest in talent
Copyright © 2015 Accenture All rights reserved. 26
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• According to bank respondents, understanding cyber
risk and technology will be in most demand
• Data management is also a top sought after capability
• While social media is a top concern, the skill set ranks
below general business knowledge
Actions to Consider
• Broadening the skillset of today’s risk function will
mean competing with technology companies for a
similar talent pool
• Generalists with a good overview of different risk topics
should be given more consideration
• Consider developing talent by utilizing rotational roles
and cross-skilling
27. Figure 12: The types of expertise recruited in the past two years, and skills to be
recruited in the next two years
Priority 2:
Invest in talent
Copyright © 2015 Accenture All rights reserved. 27
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Cyber risk specialists are in high demand among bank
respondents. This will decrease as interest shifts to
business analysts, security specialists and fraud
experts
• Commercial skills are also high in demand now, in the
form of business analysts, strategic planners and
accountants
• Data scientists also show a spike in demand
Actions to Consider
• Increase the scope of the roles to integrate quantitative
skills with general business skills and problem solving,
so the risk organization can drive key discussions
• Understand that there will be a war for talent
• Use retention and development as additional
approaches to staff the business for desired risk skill
sets
29%
36%
29%
27%
33%
37%
47%
41%
37%
31%
35%
47%
49%
33%
49%
28%
42%
49%
50%
32%
40%
53%
55%
39%
Past two years Next two years
28. Expected change in severity of the key risks facing the business
Priority 3:
Manage operational risks effectively
Copyright © 2015 Accenture All rights reserved. 2828
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Banking respondent’s focus on growth priorities
means considering different business models,
for example:
– Omni-channel banking
– Digital businesses
• New business models and rewards means
understanding and mitigating new risks
– Cyber risk – almost two thirds of
respondents believe that this will become
more severe
– Fraud
Actions to Consider
• Assess current IT platforms – are they flexible
and agile enough to meet customer demands
from new digital channels now, or as they
evolve?
• Invest in IT infrastructure that can strengthen
operational risk capabilities
– Real-time indicators of limits, collateral
management
– Dashboards, smart alerts
– Security systems
• Align finance and risk functions to tackle
operational risks in an integrated fashion,
similar to how they collaborate on market and
credit risk management
• Approach cyber risk with a holistic framework
to eliminate historic silos of risk and IT security
29. Figure 13: Expected severity of the following risks facing the business over the
next two years
Priority 3:
Manage operational risks effectively
Copyright © 2015 Accenture All rights reserved. 29
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• According to banking respondents, cyber and IT risks
top the list of risks facing their business over the next
two years
• Fraud also ranks highly
• Traditional risks, such as credit, strategic, liquidity,
regulatory, business and legal still maintain high
severity levels
Actions to Consider
• Work collaboratively to eliminate traditional silos, such
as risk and IT security, to combat cyber and IT risks
effectively
• Use new digital tools to both monitor and measure the
parameters of fraud risk
• Take a holistic approach to traditional risks and use
tools to help gain an enterprise wide view of risks from
innovative new products
65%
62%
61%
59%
57%
57%
56%
56%
56%
55%
53%
52%
52%
50%
47%
42%
Increase
30. Figure 14: Statement that best describes the stage of maturity of the bank’s
risk culture
Priority 4:
Cultivate a consistent, resilient and integrated risk culture
Copyright © 2015 Accenture All rights reserved. 3030
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Risk culture maturity remains an area open to
improvement according to bank respondents
• Most have made some improvements, but nearly 40%
of respondents face issues in successful
implementation
• Only 11% of respondents have reached a strong level
of maturity, with over a quarter aspiring to the highest
level in two years
Actions to Consider
• Challenges will arise in new business models, such as
digital, omni-channel. Clear policies and procedures
should be consistent across existing businesses
• Rely on the principles of the “three lines of defense”
model and apply them contextually with risk oversight,
risk information and related flows of information
Today Two years’ time
We are at the early stages
of developing and
implementing a risk culture
We have made
improvements in
embedding our risk culture,
but we still have work to do
and face barriers to its full
implementation
We have a strong and
consistent risk culture that
is understood and
implemented across the
entire organization
31. Figure 15: The main obstacles to embedding a consistent, organization-wide
risk culture
Priority 4:
Cultivate a consistent, resilient and integrated risk culture
Copyright © 2015 Accenture All rights reserved. 3131
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Complex human nature, coupled with challenges
overcoming preconceptions and various departmental
silos are the biggest obstacles in implementing a single
risk culture according to banking respondents
Actions to Consider
• Reach across the business with leadership from the
risk function in training
• Measure risk culture and the degree that it is
embedded throughout the bank by looking at key
metrics – then align employee incentives to metrics.
Report results to board level
• Rethink organizational structure; benefits of centralized
versus embedded
32. Figure 16: Risk management’s use of data and analytics in addressing the
following types of risk
Priority 5:
Accelerate adoption of analytics
Copyright © 2015 Accenture All rights reserved. 32
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Cyber/IT risk and operational risks top extensive use of
data and analytics
• Moderate users of data and analytics include business
risks, IT selection, regulatory risks, liquidity risks and
market risks
• A minority of respondents see themselves as extensive
users of data and analytics, but as a group, aspire to
progress significantly
Actions to Consider
• Increase scope of data and analytics drive insight
across the organization, beyond the traditional strength
areas
• Leverage information used in managing cyber/IT risk
and operational risk data to inform IT investment needs
and data management strategies to be leading users of
the anticipated adoption curve
36%
24%
41%
30%
21%
42%
32%
38%
26%
43%
29%
42%
45%
25%
27%
43%
39%
33%
27%
45%
27%
48%
16%
46%
21%
40%
24%
35%
20%
39%
29%
29%
44%
31%
Extensive Moderate
33. Figure 17: Statements that best describe the stage of maturity of the
bank’s risk analytics
Priority 5:
Accelerate adoption of analytics
Copyright © 2015 Accenture All rights reserved. 33
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• 30% of respondents say senior management is a
passive user of risk analytics
• Nearly 40% of respondents say that risk analytics is
applied at least partly across the organization
• Overall, 38% of respondents report that data and risk
analytics is integrated into everyday operations of the
risk function
Actions to Consider
• Opportunities to improve exist in both the risk function
and at senior management levels
• Senior management can improve their proactivity in
using risk analytics to inform business decisions
• Risk functions can elevate the use of data and risk
analytics beyond everyday use to strategic, high-level
decision making
Now Two years’ time
34. Figure 18: Rating risk management’s level of expertise to influence strategy and
major decisions in the following areas
Priority 5:
Accelerate adoption of analytics
Copyright © 2015 Accenture All rights reserved. 34
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
Key Findings and Challenges
• Information/network security, big data and analytics,
are major areas of substantial functional expertise for
bank respondents
• Technology strategy is an important and significant
capability to influence strategy and decision making
• Cloud computing, mobility are also areas for significant
expertise
Actions to Consider
• Win the war for talent by recruiting and developing
skillsets in math, analytics and decision science
• Big data-driven analytics can make improvements in
decision making – if aligned with and tied to corporate-
level strategies
• Use “test and learn” innovation processes to explore
new ideas at high velocity
24%
4%
30%
41%
19%
6%
30%
45%
18%
4%
30%
48%
11%
1%
36%
51%
15%
0%
41%
43%
21%
2%
28%
49%
High Moderate Low Non-existent
35. 3535
To learn more about the study and
to obtain your copy of the Banking
Report please go to:
www.accenture.com/banking-
riskstudy2015
Copyright © 2015 Accenture All rights reserved.
Source: Accenture 2015 Global Risk Management Study – Banking respondents. Access at: http://www.accenture.com/riskstudy2015
37. 2005 2015VS
Decisions informed by past events
Risk only outlook
Focused on credit, market and operational
risk
Narrow definition of operational risk
Clear demarcation between three lines of
defense
“Left brain” – quantitative; analytical approach
Prioritized control and prevention
Tactical attitude: centered on day-to-day risks
Spreadsheet-based management
Digital? What’s digital?
Looking forward, with “next day” thinking
Recognizing risk AND inherent opportunity
Aware of a growing range of emerging risks
More comprehensive definition of operational risk
Three lines of defense, with fluid interaction embedded in the
business
“Left AND right brain” – creative, innovative understanding
A balance of control, prevention, and enablement
Strategic awareness: focused on long-term business
challenges
Increasingly integrated data sources
Emphasis on digital risks and opportunities
The Risk Landscape
Risk management in 2025
Analytics now permeates decision
making
Companies are exploring robotics and
artificial intelligence to manage
transactional risks
Behavior prediction helps to effectively
inform risk management
Rise of the Chief Risk and Return
Officer
Risk management is the career path to
the C-suite
Single data source drives reporting and
analytics activities
For more information, please visit: www.accenture.com/riskstudy2015 © 2015 Accenture. All rights reserved.
38. Disclaimer:
This presentation is intended for general informational purposes only and does not take into account the reader’s specific
circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by
applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any
acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax
advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals.
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2015 Global Risk Management Study
Industry: Banking
Copyright © 2015 Accenture All rights reserved. 38