Aussie bank risk strategies must evolve: EY

EY/australian-banks/risk-management/

18 December 2018
| By Anastasia Santoreneos |
image
image
expand image

As technology advances and the current focus on the financial sector puts stress on institutions to enhance their capabilities, their risk management functions must evolve, according to EY’s ninth annual global bank risk management survey.

The survey found that boards, senior management, chief risk officers and other key executives would need to adapt to a risk environment and risk profile; leverage risk management to enable business transformation; deliver risk management effectively; and manage and recover from disruptions.

Doug Nixon, EY Oceania Financial Services Risk Management leader, said Australian banks were in a different stage in the regulatory cycle compared with their global counterparts, and institutions were facing pressure to enhance their capabilities.

“We believe the best prepared risk functions will be those that understand that the Australian financial sector has entered a new phase, and can clearly establish and execute a strategy for the risk function that is not solely focused on regulatory compliance,” he said.

The survey also showed that risk management had a central role to play in combating cyber attacks and weather-related disasters.

Nixon said the scope of risk functions would continue to grow, and risk managers were also expected to have a stronger voice in conduct and culture matters.

“They are also required to have enhanced oversight of first-line risk activities, oversee significant investment in financial crime and anti-money laundering infrastructure, and support the business in setting quantitative metrics and deploying risk appetite,” he said. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND