Over the past decades, risk management has been transformed in the banking sector after the emergence of global financial crisis. Still we can’t draw a blue print about the risk function. Since customers' experience has become more and more important, banks need to offer real time response to customers and their problems. Similarly, after evolution in technology, it has become important to look upon new risk management techniques. By 2025, manual interventions will be minimizing, hence, there is need to digitalize core processes. Also, more automation and digitalization leads more experimentation with machine learning and advanced analytics.
Better risk reporting requires to adjust with market development and broaden regulations. Different regulatory ratios require to collaborate with balance sheet optimization. With this, high performance data is the urge for high risk performing function. Build a right mix of talent and embed a right culture. To read more, click on the following link: http://www.mckinsey.com/business-functions/risk/our-insights/the-future-of-bank-risk-management