Report - November 2021
Read the Top Risk Review November 2021 for insights into operational risk profiles across financial services.
We run two Top Risk Review surveys each year to provide operational risk managers with an up-to-date picture of the material risk landscape.
The Top Risk Review November 2021 provides insight into the key current top operational risks facing the financial services industry. The report also dives into the key drivers of these risks and how they change over time.
The results of the November 2021 Top Risk Review are based on the personal opinions of risk professionals from 50 financial organisations across our global membership. The report is available for free to all ORX members.
What does the current risk landscape look like?
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)
Gated content stop
ORX Scenarios Senior Manager, ORX
Research and Information Director, ORX
Research Manager, ORX