With cyber risk ever prevalent, significant new regulatory guidance taking hold, and banks’ reliance on third parties for technology growing, chief risk officers continue to spend the largest share of their time monitoring and managing non-financial risks. But in the wake of a liquidity crisis that felled three institutions and brought numerous bank deposit runs—and with credit risk spiking—financial risks are also demanding increasing attention.
That’s according to the latest edition of the RMA and Oliver Wyman CRO Outlook Survey. Conducted in summer 2023 with contributions from 51 institutions with diverse asset sizes and geographic footprints, the survey gathered information about:
- Risk agendas, emerging risks, and budgeting.
- Reactions to the regional banking crisis across the industry.
- External outlooks on the macroeconomic, regulatory, and competitive landscapes.
In a fast-moving world where multiple and changing exposures can make managing risk feel like playing zone defense, the survey highlights how peer risk leaders and institutions are balancing their time and attention. In detailing how CROs spend their time and CRO assessments of top risks and priorities, the survey data put a bank’s risk management practices in context and inform its journey going forward.
This article discusses seven key takeaways.
We highlight several important trends for CROs as they look to prioritize their initiatives for 2024, particularly in topics related to risk measurement and preparedness. It’s intended to serve as valuable input as CROs shape their 2024 priorities with their teams and their boards.
This report was written in collaboration with the Risk Management Association (RMA).
