1、The future of risk in bankingKPMG International|KPMG.Make the Difference.Transforming risk management for a dynamic new eraContents03Introduction05Whats driving changein risk management?17Conclusion15Strive to minimize uncertainty and drivevalue across the risk-management cycle10A roadmap into the f

2、utureof risk management07Transforming the risk functionfor a bold new reality 2025 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.2The future of risk in banking IntroductionTo address increasing uncerta

3、inty,banking risk leaders must adapt the entire risk management cycle.This involves transforming risk identification,measurement,monitoring,controlling,and reporting,alongside enhancing data and infrastructure.The Chief Risk Officer(CRO)plays a pivotal role in this transformation.This survey-led pap

4、er explores factors driving the evolving risk environment,such as digitalization,competition,emerging risks and regulatory changes.It emphasizes the interconnected nature of these drivers and the need for CROs to lead risk-management transformation.Banks must respond swiftly to risks,potentially adj

5、usting risk positions or business models.Given the speed at which risks unfold,banks should be able to respond quickly and decisively,which may involve reducing or shifting risk positions,or adjusting business and operational models in the short term.A strong risk-awareness culture is vital in order

6、 to engage all parts of the bank in identifying and managing risks with the necessary speed.When executed effectively and efficiently,risk management can be a competitive advantage.With a clear vision,CROs can help banks navigate volatility and influence risk management across the organization.Readi