A moving target: Refocusing risk and resiliency amidst continued uncertainty has been saved
A moving target: Refocusing risk and resiliency amidst continued uncertainty
Findings of Deloitte's 12th Global Risk Management Survey
The impact of COVID-19 on financial institutions, the economy, and ways of working has had broad implications for risk management. But how have the industry’s risk management functions responded and where do they go from here?
When respondents were asked to name the most important issues they expected to face over the next two years, these included global financial crises (48%) and global pandemics (42%).
In 2020, as the world grappled with the COVID-19 health crisis, financial institutions’ risk management faced challenges of a scale and scope that has never been seen before. The measures taken by governments, businesses, and consumers to hold back the spread of the novel coronavirus triggered a sharp economic downturn and far-reaching social impacts.
COVID-19 has also had a direct financial impact on financial institutions. The economic contraction significantly increased credit risk from both retail and commercial customers, and many institutions responded by tightening credit standards. There also may be a greater risk of fraud resulting from the misuse of customer data, invoicing for work not completed, or collusion with disreputable third-parties.
Performance magazine issue 35, May 2021
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.