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The survey , conducted across UK financial organisations of between 250- 5000 employees , reveals that 26 % of respondents view geopolitical events , including the aftermath of Russia ’ s invasion of Ukraine and tensions between the US and China , as the most critical risk area for the sector . This was followed by the risks presented by liquidity and access to capital , which was the top concern for 24 %.

Tsambika Jeffries , VP , Enterprise Operational and Financial Risk , Zepz , said : “ The findings of the report do resonate for firms like ours ; geopolitical uncertainty can impact us around the globe and operational resilience has been a key area of focus . As

a FinTech , we embrace new technology and are constantly striving to find ways to increase automation and efficiency . The benefits of AI could be considerable , as long as risks are carefully managed .”

A further key finding of the report is the strategic advantage that financial organisations can gain through aligning their technology and data strategies . In particular , the survey highlights the ongoing reliance on manual processes in risk management , with 24 % of respondents using manual processing for control evaluation and monitoring , 22 % for incident / loss event management , 21 % for policy management and 21 % for risk assessment . This reveals the potential for digitalisation to enhance efficiency and compliance , particularly in light of new regulations such as the UK ’ s emerging climate change rules and the global standard for sustainability reporting .

Looking further at the role of technology , financial organisations seem cautious about the use of Generative AI , with 35 % in the UK saying that they are already using it but have limited or no plans to further expand its implementation over the next 12 months .

The study also points to a shift in operational resilience , with 59 % of organisations assigning significant budget to integrate operational resilience into their enterprise risk management frameworks . This reflects a proactive approach to risk management , moving from a reactive stance to an anticipatory one , acknowledging that disruption is not a matter of ‘ if ’ but ‘ when ’.

Gary Lynam , Managing Director EMEA at Protecht

Another significant trend is the heightened focus on third party risk management ( TPRM ). With over two-thirds ( 68 %) of UK financial organisations planning to increase investment in TPRM solutions , the study reinforces the need for a more integrated and strategic approach to managing third party relationships , particularly in an era dominated by cloud-based services .

“ This survey paints a picture of a financial services industry at a crossroads , with technology playing a pivotal role in navigating these changes ,” said Gary Lynam , Managing Director EMEA at Protecht . “ Firms are increasingly seeking to align risk management disciplines with technological advancements to build sustainable , resilient and efficient operational frameworks . We urge organisations to embrace these technology-led changes to not only mitigate risks but also to harness new opportunities for growth and innovation .” x www . intelligentcxo . com

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