SIX TRENDS SHAPING RISK FUNCTION
• Regulation will continue to broaden and deepen
• Customer expectations are rising in line with changing technology
• Technology and advanced analytics are evolving
• New risks are emerging ( model , cybersecurity and contagion )
• The risk function can help banks remove biases
• The pressure for cost savings will continue
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Source : McKinsey
– and ‘ risk and compliance analytics ’ is among them . It believes organisations need to evaluate their situation and available automation capabilities to find the right mix of applications and automation that fits their needs .
KPMG suspects we may have reached a tipping point , thanks to enhanced AI , cognitive automation and better-designed ‘ bots – though if you think staff payrolls can be costly , consider the sums of redesigning entire corporate processes .
“ We worked with a large investment bank that recently spent over $ 100m to implement work flow tools allowing it to reengineer processes ,” it stated . “ That ’ s a huge investment in technology and it can be a difficult pill for senior management or shareholders to swallow .”
It seems firms will need to strike a balance between automation and human relations for some time to come .
fintechmagazine . com