EY, IIF: non-financial risks to be the main threat to global banks in 10 years

In addition to the risk associated with the expected economic slowdown, non-financial risks dominate among the 10 key risks identified for banks around the world, which have grown steadily in recent years. 61% of risk managers are afraid of making their core operations dependent on the services of external suppliers. One in four banking institutions identifies the issue of privacy protection as a key risk, according to a report by EY and the Institute of International Finance (IIF).
 
“Risks associated with the introduction of new technologies such as the cloud and the extensive use of data analytics have a high priority. The threats resulting from the unstable geopolitical situation and climate change are also identified,” the report reads. Other key risks include issues related to the evolution of customer needs and expectations. 44% of respondents believe that the proper valuation of banking services and products offered to clients will be a major challenge in the near future.
 
(ISBnews)