Navigating Risk and Resilience in 2024: Insights from UK Financial Institutions
In the ever-evolving landscape of risk management and business resilience, financial institutions are facing unprecedented challenges that require strategic adaptations and investments to navigate successfully. A recent survey conducted by Protecht among 400 UK financial-services institutions sheds light on the key findings and insights into the risk and resilience outlook for 2024.
Geopolitical uncertainty and liquidity challenges have emerged as top concerns for banks, with significant impacts on operational resilience and strategic decision-making. The survey highlights the need for agile risk-management strategies to navigate an unpredictable geopolitical climate and address liquidity constraints.
Operational resilience has become a major priority for banks, with a focus on integrating resilience into enterprise risk management frameworks. Investments in technology and digitization efforts are on the rise, as financial institutions seek to automate risk-management processes and enhance efficiency.
Third-party risk management (TPRM) is also gaining prominence, with banks increasing investments in TPRM solutions to address evolving risk profiles and regulatory pressures. The survey underscores the importance of a more integrated and automated approach to TPRM to ensure robust risk-management practices.
The regulatory landscape and compliance requirements are evolving, demanding a more comprehensive approach to risk management that focuses on customer outcomes and third-party risk management. Financial institutions are navigating the adoption of generative AI cautiously, considering regulatory implications and data privacy concerns.
Overall, the survey findings emphasize the critical need for banks to bolster their risk-management frameworks, integrate operational resilience, and leverage technological advancements for enhanced efficiency and compliance. By strategically addressing these areas, financial institutions can fortify their operations, capitalize on new opportunities, and position themselves favorably in a competitive and regulatorily complex environment.
