How do we prepare for the future with so many risks to consider? It is no wonder that risk continues to factor into the top list of priorities for CEOs.
Financial institutions all share a collective need to balance limited resources, assess evolving risk factors, comply with regulations, and better manage their data. While risk comes in various shapes and sizes, non-financial risk (NFR) is a growing area of focus across organizations.
The NFR scope is vast, covering a range of risks from cyber, financial crime and fraud to regulatory compliance, legal and resilience risk. These risks may be caused by people, inadequate or failed processes, data or systems, or even external events which can have an adverse impact on an organization and its daily business activities. To prevent calamity, firms which take actions to protect their reputations and revenue can mitigate the challenges from NFRs.
In this article, we examine NFR challenges and propose recommendations in the following areas:
- Anticipating regulatory focus
- Managing data using analytics
- Embedding operation resilience
- Executing a NFR operating model.
For more information how we are helping organizations meet ever-evolving risk challenges, contact the article author, Alfie Lindsey.