Top Risk Review November 2021

The economic and geopolitical outlook has been, and will continue to be, uncertain and although on the surface it appears that there has been little change to the top 5 risks, the external environment continues to shift rapidly, and it is a key driver impacting risk profiles.

Overall, the latest Top Risk Review has indicated a subtle shift in the industry’s operational risk profile. Although still prominent, we are beginning to see a reduction in the risks directly associated with the pandemic and an increase in risks associated with the acceleration of digital transformation.

Top operational risks

Here's a brief overview of just some of the headline findings from the study:

• Information security (including cyber) remains the single greatest industry concern, with the potential to impact organisations financially, operationally and reputationally
• Increased reliance on third party arrangements is driving concern around concentration risk and increased business continuity exposure, particularly where oversight of third-party controls is deemed insufficient
• Regulatory compliance is now a top-three risk as the regulatory landscape continues to change at speed
• Technology risk remains a key concern, with growing customer expectations and competition from FinTechs seeing an increasing number of firms adopt new technology or systems (often via third parties)