A new survey has found that Asian risk officers are more concerned about internal disruptions than about the forever threats of cyber and climate risks.
The new survey conducted by consultancy firm Ernst & Young and Institute of International Finance reveals that things that keep the chief risk officers up at night in the Asia Pacific region are slightly different than those in other parts of the world.
Almost two-thirds of Asian regional CROs can’t sleep well because of the possibility of internal disruption or operational resilience while it only bothers significantly less than 40% of those farther afield in other parts of the world.
The second concern was cyber security, with more than half rating that as the most important risk, followed by liquidity risk (45%), environmental risk (36%) and regulation implementation (36%).
Globally, however, cyber security is what prompts insomnia in almost three-quarters of all CROs, followed by regulation (36%), operational resilience (33%), liquidity (33%) and risk appetite (32%).
The survey said that although CRO priorities shift from day to day, both cyber and climate have become so-called forever threats and are unlikely to reach a point of stability or manageability that risk departments would like to see.
The CROs were also asked about how machine learning, AI and generative AI tools were being used at their institutions.
Globally, almost half said they were used to identify fraud, with 43% indicating they were used to automate operational tasks such as client onboarding, 34% for data analysis (including anomaly detection), 33% for client selection and 26% for the automated analysis of documents.
The survey polled 85 financial institutions in 30 countries, of which 14% were headquartered in Asia, 20% in Europe, 14% in Latin America, 18% in the Middle East and Africa and 34% in North America. M