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Shifting Priorities: CRO Agendas in a Time of Uncertainty and Innovation (15th Annual EY/IIF Global Bank Risk Management Survey) (EY)

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SurveyEYJanuary 202635 pages53 min readOriginal source
Key number
86%
CROs naming cybersecurity/technology risk among their top five risks for the next 12 months p.5
Largest segment
67%
CROs citing chatbots as a current AI use case in risk management p.19
What changed
49%
CROs planning to increase risk management FTEs (down from 68% last year) p.29

Summary

  • 86% of chief risk officers name cybersecurity/technology risk among their top five priorities for the next 12 months, followed by credit risk (62%) and digital fraud risk (59%).p.5
  • 72% of CROs say AI adoption within risk management is currently limited, and only 12% are already seeing and measuring benefits.p.19
  • 80% of CROs identify data quality and availability as a major challenge to AI adoption in risk management.p.20
  • 60% of CRO respondents say their banks do not have a digital asset strategy, while all participating G-SIBs do.p.22
  • 71% of CROs expect cyber and technology risk to see the greatest increase in supervisory focus over the next three years.p.25
  • 49% of CROs say they will increase risk management FTEs (down from 68% last year), while 30% say they will decrease them (up from 16%).p.29
  • 33% of CROs are adjusting risk appetites to manage private credit exposures.p.16

Key insights

  1. 71% of CROs cite digital acumen (technology, data, AI, programming) as a top skill set to better manage risk.p.8
  2. Consumer/retail credit risk and wholesale credit risk are each named the top financial risk by 30% of respondents.p.14
  3. Among G-SIB CROs, 50% said wholesale credit risk was the top financial risk.p.14
  4. Chatbots (67%) and detection of digital fraud and financial crime (61%) are the most common initial AI use cases in risk management.p.19
  5. For future AI use, 75% plan digital fraud and financial crime detection, 72% cyber and operational risk management, and 71% credit and market risk modeling.p.21
  6. CROs see the primary quantum computing threats as disruption to cybersecurity, fraud detection and transaction integrity (44%) and encryption vulnerabilities (39%).p.23
  7. Increased compliance costs (69%) are the leading area of impact from regulatory fragmentation.p.24
  8. 68% of respondents cited climate-related physical risks as a significant driver of sustainability-related risk, followed by climate-related transition risks (60%).p.27
  9. 95% of European CROs cite geopolitical concerns as a force shaping their strategic agenda.p.11

Topics and entities

GlobalAI in financeBankingCrypto and stablecoinsCybersecurityPrivate debt and venture debtPrivate marketsRegtechRegulationEYInstitute of International Finance

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