{ "docId": "019dd923-5e88-73ef-bd58-58f12416821e", "docSlug": "c8e8c0da32666e92", "documentTitle": "ey iif bank risk management survey", "authorId": "MorganStanley", "authorName": "EY", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.778, "pageNumber": 4, "pageCount": 38, "prevPage": 3, "nextPage": 5, "slideType": "key_takeaways", "function": "summarize", "density": "dense", "nDataPoints": 0, "notes": null, "elementsJson": [ "headline_text", "action_title", "paragraph", "big_number" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd58-58f12416821e/4", "deckHref": "/decks/019dd923-5e88-73ef-bd58-58f12416821e", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd58-58f12416821e.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd58-58f12416821e#slide-4", "components": [ { "bbox": null, "kind": "callout", "text": "The bottom line: Our results are consistent with ongoing shifts in the macroeconomic and geopolitical environment.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-340c-7065-8a66-89338bbadb01", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.5, "w": 0.3, "x": 0.68, "y": 0.45 }, "kind": "image", "text": null, "attrs": null, "subkind": "illustration", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "957e2b66-44f6-432e-aed5-1dd6524b384a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.6, "w": 0.3, "x": 0.07, "y": 0.28 }, "kind": "paragraph", "text": "According to this year's results, many of CROs' and boards' top risk priorities have one thing in common - they are driven by external forces. That includes cyber threats (which remain far and away the highest priority risk) and operational resilience, the top two priorities for CROs in the coming year and in the top five for boards. Geopolitical risk has rocketed up the agenda this year, to third for CROs and second for boards, whereas last year it was the 12th highest near-term priority risk for both CROs and boards. Environmental, social and governance (ESG), third-party risk and financial crime, all within the top 10, are also largely shaped by forces beyond the control of CROs.\n\nThe top financial risk also reflects market developments. Wholesale credit is this year's 11th highest priority for CROs, while liquidity risk, which was the fourth highest overall risk priority last year, fell to 13th. Retail and consumer credit risk, the ninth highest priority for CROs last year, fell to 14th this year. Interestingly, no financial risk cracked this year's top 10. Last year, four financial risks were among the top 10. These risks are still inherent and potentially significant across the industry and for many individual institutions.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6f8b85b2-603b-430f-a86f-ea165f7e714c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.6, "w": 0.3, "x": 0.38, "y": 0.28 }, "kind": "paragraph", "text": "However, it appears that CROs have considerable confidence in their ability to manage these more traditional risks when compared to emerging and less familiar threats.\n\nConcerns about regulatory risks and banks' ability to implement the necessary changes for compliance also reflect external developments. After several consequential elections around the world in the past year, there is much uncertainty and a sense of unpredictability relative to fiscal and foreign policy and regulatory oversight. Ongoing trade tensions equate to a more fragmented and less integrated operating environment, which impacts multinational institutions. Rising regulatory requirements and supervisory expectations (e.g., sustainability disclosures) are also on CROs' minds, both in terms of the additional requirements to be satisfied and the impact on the bank's competitiveness.\n\nThe bottom line: Our results are consistent with ongoing shifts in the macroeconomic and geopolitical environment. The fluidity in CRO priorities reflects the highly dynamic and sometimes volatile nature of the banking business today, which demands that risk management teams closely monitor a range of external forces and market developments around the world. In addition to embracing a continuous learning mindset, CROs must demonstrate confident leadership and instill agility for rapid response. They'll also need to invest more time thinking about future scenarios and how to navigate their institutions - as well as their risk management teams - through this constantly evolving and often turbulent time.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e3b56005-76cf-4b86-908e-4349e51ea27b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.4, "x": 0.07, "y": 0.17 }, "kind": "title", "text": "1\nExternal forces dominate the risk management agenda", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1878bacc-4890-4d0b-91ec-c8033983cd08", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.2, "x": 0.07, "y": 0.1 }, "kind": "title", "text": "KEY TAKEAWAYS", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e19118bd-8ac7-47cc-960f-ba2490e95014", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Scenario planning", "slug": "scenario-planning", "agent": null, "layer": "block", "matchId": "72ed304e-57f1-4c8c-975b-c4f3c2da3e1d", "evidence": "keyword-coverage: scenario, uncertainty", "confidence": 0.2 }, { "name": "Action Titles", "slug": "action-titles", "agent": "Architect", "layer": "slide", "matchId": "ee538022-bcc3-46cd-a0c4-0e2db78cb353", "evidence": "The slide uses action titles to emphasize key points.", "confidence": 0.7 } ], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }