Managing risk in uncertain times: Financial services risk register analysis

In our post-pandemic world, there is ongoing uncertainty all around us and risks that must be carefully navigated. Of course, this is not the only challenge facing financial institutions, with geopolitics and the rising awareness of climate change risk also presenting their own issues for organisations to overcome. These factors, together with the cost-of-living crisis, rising inflation, and the constant need to deliver good customer services and outcomes all play a part in risk management. Financial institutions have had to respond, by adapting their business models and seeking to innovate in a range of different ways.

Against this backdrop we have undertaken a sector-wide review of financial services strategic risk registers to allow organisations to consider how their risks compare and to question whether they are missing any significant risks.

In our paper we analyse both quantities of risks across organisations and capture the severity of the risks recorded. In doing so we highlight those areas considered by organisations to be high risk should the risk materialise. In our analysis we identify the top three risk areas for financial services institutions:

1. Regulatory risks including failure to maintain data privacy and risk of legal or regulatory sanctions; 
2. Business planning and performance related risks which covers ineffective business practices; and 
3. Governance risks including unethical standards and over ambitious corporate targets.

For a high level summary of key findings, please review our client briefing here. To explore our findings in more detail and for more in-depth analysis spanning all of the key risk themes across financial services risk registers, download our full report which can be accessed below.