Financial Institutions

Industry Overview

Financial Institutions

Building Resilience to Support Growth

Expanding global wealth and advancements in technology provide financial institutions with opportunities to grow in new markets, but also create risk and human capital challenges that require innovative solutions.

From the volatility created by climate change to geopolitical and financial headwinds to significant organizational threats in the form of regulatory pressures, cyber threats and shifting workforce expectations, the pressure is on across the industry.

The key to achieving success will be agility and resilience. Organizations in the industry face the challenge of assessing and managing their approach to both human and operational risk—including, adopting greater agility through innovation, anticipating future exposures and optimizing risk management to create the organizational resilience necessary for growth.

Top 5 Current Risks

According to our latest Global Risk Management Survey, the biggest risks facing the Financial Institutions industry include:

  • 01

    Cyber Attack or Data Breach

    Cyber attacks are, and will remain, a top risk across all geographies and industry sectors. All leaders need a cyber game plan.

  • 02

    Regulatory or Legislative Changes

    Uncertainty about upcoming regulatory changes affects business confidence, and companies active in multiple jurisdictions must track and comply with a wide variety of complex laws and regulations.

  • 03

    Economic Slowdown or Slow Recovery

    Global economic uncertainty is being fueled by geopolitical volatility and unpredictable inflation and interest rates.

  • 04

    Cash Flow or Liquidity Risk

    Cash flow and liquidity challenges are particularly acute in certain industries, and this is not expected to change down the road.

  • 05

    Tech or System Failure

    Technology failure can result in a loss of income and also have knock-on impacts on a company's reputation.