Deloitte’s Risk Management Survey

The 12th edition of Deloitte’s Global Risk Management Survey, conducted from March to September 2020, provides an in-depth analysis of risk management practices within the financial services industry. The survey gathered insights from 57 financial institutions worldwide, collectively holding assets totaling $27.2 trillion.

Key findings indicate that institutions have made progress in establishing strong risk management governance, with all participating organizations reporting the presence of a Chief Risk Officer (CRO). However, challenges remain, particularly in managing nonfinancial risks such as cybersecurity, operational resilience, and environmental, social, and governance (ESG) concerns. Notably, 20% of respondents identified credit risk as the risk type expected to increase most in importance over the next two years, reflecting concerns over economic contractions.

The survey also highlights the growing importance of digital risk management, with institutions leveraging emerging technologies like cognitive analytics and robotic process automation to enhance risk management effectiveness and reduce costs. Nonetheless, many institutions face obstacles due to a lack of comprehensive, high-quality risk data necessary for these technologies.

Overall, the survey underscores the need for financial institutions to adapt their risk management strategies to address both traditional financial risks and evolving nonfinancial risks in an increasingly complex and uncertain environment.

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Citation: “Global Risk Management Survey: Accelerating Risk Management Practices” Deloitte. May 1, 2007.