Innovative products and services are establishing new ways of doing business to create more value for financial services institutions.The use of emerging technology to optimize current processes and become more efficient, however, is creating new risks and additional exposures
At the heart of the new paradigm is adaptive risk management — incorporating the management of risks associated with the digital transformation from the front office to the back office (digital risk management), as well as fully testing and deploying digital strategies to better manage risk (digitizing risk management).
This paradigm shift will be a reimagined and transformed risk function, with a unit that enables the organizational agility needed to embrace risk, promote a more predictive risk approach, and harness new technologies and risk ecosystems to drive improved outcomes and lower costs without losing the independent perspective that is so important to managing risk.