LeadersConnect Live | 20-21 May 2025 | New York
Strategy, speed and value were top of the agenda on the first day of LeadersConnect Live 2025. We were joined by over 40 risk leaders from across our membership to discuss topics including the future of operational and non-financial risk (ONFR), AI risk management and a CRO discussion on how ONFR can deliver success. Read on for highlights from day one of LeadersConnect Live 2025.
A vision for ONFR in 2025After opening remarks from Luke Carrivick, ORX Executive Director, and Lisa Broomer of JP Morgan and Chair of the ORX Board, we started the conference by exploring progress made on ORX's Vision for ONFR (freely available to download). Launched at last year's LeadersConnect Live, this vision is based on three pillars for successful operational risk management:
- Having a fit foundation
- Building a digital core
- Developing new insights and capabilities
Steve Bishop, ORX Research and Information Director, summarised ORX's view on progress made in these three areas. Namely, that financial organisations have made good progress creating solid foundations while they are moving forward but still have work to do to build a digital core and develop new insights and capabilities.
Simon Wills, Senior Board Advisor, then led an open discussion on where the participants thought the industry had got to. While viewpoints sometimes differed, there were many common themes running through the session. Despite the fact that there are still lots of challenges, it was good to hear that a lot of progress is being made.
Frameworks, foundations and the challenges of transformation
A theme running through many of the comments was the challenge of trying to fix today's problems, while also building capabilities for the problems of tomorrow. Firms are rightly cautious about ripping everything up and starting all over again. They need to maintain the good practices and processes they currently have. As one participant put it:
"How to keep the engine going while making enhancements"?
Systems, processes and programmes need to be reviewed to achieve digital capability. Simplification and standardisation are key, but how do you simplify and standardise something so complicated? On top of this, risk needs to innovate in line with the business, but regulators can make this difficult.
Skills and culture are fundamentally linked
"You need to change the tools to attract the people who will change the culture. But at the same time, you need to change the culture to attract the people needed to change the tools."
All agreed that skills and culture remain a challenge. From a skills perspective, a firm can have the best framework possible, but they are reliant on people to implement it. Skillsets in ONFR are not developing quickly enough, especially in comparison to credit and market risk where there are recognised qualifications. It is important to strike a balance between the need for generalists and specialists who can speak the business language.
Moving to culture, in general, risk teams want to be seen as 'enablers', not 'blockers'. In part, this can be achieved by becoming less operational and being strategic business partners. They need to be involved in decision making and able to challenge the business before problems occur. A topic that was picked up in the CRO panel later in the day.
Digital core and the importance of data
Firms are now thinking more broadly about data. Typically, they have plenty of it and they are focusing on how to make the best use of what they have, no matter where it sits or who 'owns' it. Technology can be used to help with reporting and identify potential actions. A point mentioned by many of the participants was the need for a nuanced warning system which helps them to see what needs resolving now and what can wait.
In addition to the points mentioned above, delegates highlighted other priorities including controls, geopolitics and resilience. Unsurprisingly, many comments touched on the impact and possibilities of AI in risk management. A topic we covered in more detail in the next session.
AI in risk management
Next on the agenda was a panel discussion on AI in risk management, followed by smaller breakout groups to allow participants to discuss some of the topics in more depth. AI will transform how financial services operate and change risk management. It is also inevitable; and no firm can afford to be left behind. On the other hand, no firm wants to be the first to get it wrong.
In such a fast-moving field, no one can truly see where we'll be in five or ten years. The real value of AI could well be in the areas that we haven't even considered yet. While there is a lot of development in AI usage, firms are often cautious about customer-facing deployments. There is less caution around internal use of AI – for example, initiatives that can accelerate processes or bring about efficiency.
On a practical level, delegates agreed that it's helpful to hear how their peers are thinking about approaches to AI. It is important to rethink your existing framework to make sure it evolves as needed. The question was asked:
"How can we be prepared for when the use case flood gates open."
A view from the CRO's office
ONFR is critical to success and communication is key
We were delighted to be joined by two CRO's who shared their perspectives on ONFR management and how it supports the business. Both agreed that ONFR is key to growth and strategic decision making, as discussed in the first session of the day. From their point of view, ONFR is uniquely placed to support business success because it should be embedded throughout the organisation. They spend more time on ONFR than the other risk streams.
To build this strategic partnership, however, it's critical for ONFR to communicate in a way that non-ONFR teams will understand. Most importantly, start with the 'so what?'. As a risk manager, explain to the person you're speaking why it matters and what you're asking them to do in response. Have the confidence to prioritise the information you're presenting and focus on the key points.
The conversation then moved on to the importance of speed. Both CROs agreed that while comprehensive frameworks and common standards are important, ONFR needs to be agile to help the business achieve its goals. Delegates then had the opportunity to ask questions and dive into some of the topics covered in more detail.
Building momentum and value
Our strategic theme continued in the next session, with two speakers from member organisations sharing their thinking on the value of ONFR, how to build momentum and how to demonstrate value. Again, the role of ONFR in supporting strategy was mentioned – particularly for good decision making. It was clear that understanding the value ONFR delivers is important. Covid demonstrated what ONFR can do and is good indicator of the value. This short discussion was followed by smaller breakout groups, allowing delegates to discuss key topics in more detail with each other.
Finally, to wrap up the day Luke Carrivick, ORX Executive Director, updated the group on how ORX is evolving to continue to best support our members and subscribers and on our plans for the future.
For an overview of what was discussed on day two, including governance, process and third party/ecosystem, read the blog: LeadersConnect Live 2025 Day 2 Highlights.
