Financial services: Managing risk to get fit for a digital future

Financial services firms need to manage digital risk, to deliver a better customer experience, make firms fit for the future, and to create a more resilient financial services ecosystem.

Amid the humanitarian and economic shock of COVID-19, the digital forces reshaping the financial services industry have gone into overdrive. This disruption is changing the nature of digital risk as well as introducing new risks that might not have existed in the recent past. At the same time, digital technologies and processes offer financial institutions the opportunity to redefine business models and transform customer interactions.

This paper from Deloitte, Financial services: Managing risk to get fit for a digital future, explores the digital risk landscape along its various dimensions across the financial services industry. The study also discusses some significant types of digital risks that are common among financial institutions and how financial firms can turn them into a digital advantage. 

The common types of digital risks are:

• Cybersecurity risk
• Ecosystem risk
• Emerging technology risk
• Execution risk
• Fraud risk
• Privacy risk
• Legal and regulatory risk
• Brand and reputational risk
• Strategic risk
• People and culture risk