Identifying emerging risks
Brand protection and the ability to attract and retain key staff have emerged as key risk factors for companies operating in the Australian financial services sector, according to AonAustralia national financial institutions practice group head Tim Farren.
He said the growing popularity of exotic risk products also presented challenges.
Farren has told a conference dealing with professional indemnity that corporate governance, talent management and an increased reliance on technology are the top three risk concerns of banks and financial institutions.
“Banks and financial organisations face a myriad of risks within their respective environments,” he said. “Every strategy we develop is shaped by risk, every market we develop creates new exposures, and each new decision brings with it new contingencies which must be assessed and managed.”
Farren said many banking and financial institutions were rightly concerned about brand and image in circumstances where issues such as corporate mishaps, wayward business conduct and product quality had caused significant damage to the reputation of numerous Australian and international companies.
He said the rise of stakeholder activism and its impact on brand and reputation was an issue that banks were watching closely.
“The ability to attract and retain key staff is a continuous concern for Australian banking and finance executives,” Farren said.
AUTHOR
Mike Taylor
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
