This Deloitte Global report urges financial institutions to rethink and transform the way they manage risk to leverage emergent technologies, and increase risk management productivity and effectiveness.

The report describes six imperatives that institutions must consider to become more dynamic and capable of responding to new developments.

1. Increase focus on strategic risks like geopolitical, FinTech and other non-traditional competitors; and improve identification and management of these risks.
2. Rethink the three lines of defense by enhancing business unit responsibility for managing risks and clarifying second line of defense activities.
3. Leverage emergent technologies to increase efficiency and effectiveness of risk management. 
4. Establish a formal conduct and culture program to build customer trust and gain a clear strategic advantage.
5. Enhance risk management capabilities to build a more nimble infrastructure able to address newer nonfinancial risks as well as the challenges of regulatory fragmentation.
6. Manage capital and liquidity strategically by enhancing governance structures and decision-making processes.

Today, risk management is at crossroads. Financial institutions need to decide if they will continue with business as usual or fundamentally rethink their approach to risk management.

Read the report to better prepare for what lies ahead in risk management. Please contact a Deloitte executive if you’d like to discuss the report, or learn how we can assess your current risk management strategy and recommend best practices to position you for success.