Emerging risk management: adding bounce to the crystal ball

| Point of View

Financial institutions today are exposed to a variety of global landscapes – all of which are driven by the economic, geopolitical, technological, sociopolitical, and environmental world that we live in. These different landscapes expose organisations to an accumulation of rapidly changing risks that must be managed in order to mitigate the threats to a firm’s performance. Having the tools and capabilities to be prepared and respond appropriately to new trends and developments from these constantly changing landscapes has become crucial to all industry sectors, and especially to financial services.

 

This paper offers a perspective on topics related to strategic planning and emerging risks, including: the definition of emerging risks; current global emerging risks; how institutions can adapt or implement an enterprise risk management framework to better respond to unknown and unknowable risks; and implementation challenges in integrating an emerging risk group into an enterprise risk management environment.