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    Leadership, Strategy & Advancing Op Risk

    Report - New version published November 2025

    In 2024, ORX published the first version of ‘Our strategic vision for operational and non-financial risk’. We intended it to be a “living concept”, which we would continue to work on and evolve with our community of senior leaders. This 2025 update reflects on the development of operational and non-financial risk (ONFR) management since our vision’s original publication last year.

    Our original report was based on interviews with over 50 Chief Risk Officers and other risk leaders. It explored whether the business transformation has affected ONFR profiles and priorities, asking:

    • Whether ONFR is increasing
    • Whether and how ONFR is changing
    • Whether ONFR management needs to change
    • What successful ONFR management will look like in the future

    Revisiting our vision to reflect industry developments

    This refreshed vision is based on ongoing discussions with ONFR leaders. It includes insights from conversations, in-person discussions at LeadersConnect Live 2025 and virtual LeadersConnect sessions. It also draws on work we’ve done throughout the year on topics including skills, governance, emerging risk, ecosystem risk, AI and digitalisation.

    We will continue to develop the vision and the pathway to success, and our objective remains to share thinking across the industry, increase confidence in ONFR management, and thereby accelerate progress.

    Download your complimentary copy of the report today

    Our vision for ONFR

    The leaders we spoke to for this report came from small and large firms, from banks and insurers, and from Europe, America, Asia, Australia and Africa. They were a diverse group, yet the messages we heard were strikingly consistent and emphatic, and echoed the changes in both the business and ONFR transformation.

    Every single risk leader was aware of the challenge and was responding in some way. The consistent view was that to successfully balance risk and reward, ONFR needed to match the speed and scale of the digital business. It must support the business to deliver change safely, look ahead to emerging risks and connect the dots to offer a whole assessment of risk. The overarching objectives should be to:

    • Reduce loss
    • Safeguard customer services, data and assets
    • Ensure firms are trusted by customers, the market and regulators
    • Help firms grow and transform safely

    One year later, our vision has been confirmed and measurable progress has been achieved. But the risk environment and practice continue to evolve. We believe that the emergence of strategy and the focus on resilience as core strategic objectives are significant enough for us update our vision.
    “Ensure resilience today and strategic success tomorrow.”

    Our strategic vision for operational and non-financial risk

    When this vision becomes a reality, then the management of ONFR will look very different. It will have a broader purpose, a wider scope, a positive culture, new skills, and would operate from a digital core. It will generate new risk insights that capture and brings together emerging risks, ecosystem risks, change risks and resilience. This active risk management would lead to a step change in the value that risk adds, as should be expected from a function so directly relevant to achieving strategic objectives.

    Turning the vision into reality

    What progress have we made in 2025?

    Over the past year, our members have made huge progress towards our shared vision. They've built fit foundations, a new digital core, and developed critical new insights and capabilities. These advancements are being made despite a risk environment that remains challenging, characterised by digital transformation, high levels of internal change, increasing external volatility and increasing interconnectivity.

    Fit foundations

    Digital core

    Insights and capabilities

    Fit foundations

    • Evolving 2LOD operating models
    • Building partnerships with 1LOD
    • Acquiring critical new skills
    • Re-balancing risk culture
    • Rolling out risk standards
    Blue mountains on horizon at sunset

    Digital core

    • Improving data quality
    • Implementing new technology
    • Automating core processes
    • Experimenting with AI
    Blue mountains on horizon at sunset

    Insights and capabilities

    • Focusing on risk-managing change
    • Building ecosystem risk management capability
    • Improving views of emerging risk
    • Developing a holistic view of risk
    Blue mountains on horizon at sunset

    The key steps to success

    Risk leaders are already taking steps towards making the vision a reality, and a common path forward is starting to emerge.

    The pathway to success

    Laying foundations fit for the future

    First, leaders are creating foundations that are fit for purpose, which are an essential precursor to digitalisation. This consists of governance, culture and communications, skills and framework.

    Building a digital core

    Then they are building a new digital core for risk to match the digitalisation taking place in the business. Key elements of this core are data and AI.
    Image showing 4 layers of path to success. Bottom layer is: Governance, Culture & Communications, Skill and Framework. Second layer: Data, Digital Core, AI. Second layer: Emerging Risk, Ecosystem Risk, Change Risk and Holistic Risk. Third layer: Resilience. Top layer: Strategy
    × Image Modal

    Developing new capabilities and insights

    And finally, they are creating new risk capabilities and new risk insights. This includes emerging risk, ecosystem risk, change risk and holistic risk.

    Supporting core objectives

    Reflecting the changes in 2025, we’ve added resilience and strategy as core objectives to the pathway for successful ONFR management.

    Download your complimentary copy of the report today

    “In 2025, we saw circumstances accelerate and amplify the need for new insights and capabilities. Risk leaders have prioritised speed and practicality in meeting demands from the business.
    The strategic priority is to understand and gain traction on the new risks created by the new digital businesses. Firms that have introduced change-risk management have shown that it is possible to move quickly even if not all the systems and foundations are in place.”

    Our strategic vision for operational and non-financial risk

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    Interested in reading more about our vision for ONFR?

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    Not got an account? You can also download a complimentary copy of this paper.

    Download the white paper

    Find out more about ORX Membership

     

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    About ORX Membership

    ORX Membership is an ever-expanding global community, sharing knowledge, expertise and experience. Members get access to an extensive library of resources, including reports, benchmarks, industry standards and libraries.

    Through ORX Membership, firms can:

    • Join one of our communities of operational risk professionals
    • Take part in projects with your peers
    • Attend one of our many events to network with leaders in the industry

    Find out more about ORX Membership

     

    Disclaimer: ORX has prepared this resource with care and attention. ORX does not accept responsibility for any errors or omissions. ORX does not warrant the accuracy of the advice, statement or recommendations in this resource. ORX shall not be liable for any loss, expense, damage or claim arising from this resource. The content of this resource does not itself constitute a contractual agreement, and ORX accepts no obligation associated with this resource except as expressly agreed in writing. ©ORX 2025

    Contacts:
    Luke Carrivick

    Luke Carrivick

    Executive Director, ORX

    Simon Wills

    Simon Wills

    Senior Board Advisor, ORX

    Steve Bishop

    Steve Bishop

    Research and Information Director, ORX

    Roland Kennett

    Roland Kennett

    Client Success Director, ORX

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