Banking risk professionals reporting that a shortage of talent impedes the overall effectiveness of the organization’s risk management function.
While the need for core skills is the same between retail and commercial respondents, there is a more pressing need for emerging technology skills among the 2017 retail banking respondents (81 percent), where this is the top challenge impeding risk management effectiveness, compared with the commercial segment (64 percent), where it is just the eighth ranked challenge. Skills should continue to be a challenge, but it is encouraging to be able to report strong progress in key areas such as data analytics and cyber since we started this research.
In the year ahead, risk leaders should continue to build teams that are both responsive and anticipatory—able to catch issues early and respond to increasingly ad hoc requirements from regulators and the business. Given the complexity of risks banks manage, leaders may find value in bringing in skills from different markets, divisions and professional backgrounds—creating teams with the breadth of talent required to excel in modern banking risk management.