Financial services firms need their risk management teams to identify and embrace upside risk opportunity even as they mitigate downside risks.
Consumers want personalized offerings based on their immediate or near-term needs — a home equity line of credit for a growing family or a commercial loan for a small business. And they want these products delivered via highly transparent processes. Consumers largely trust digital leaders in other industries because of their transparency and the high-quality customer experiences those companies provide. Trust has become a new currency to derive value and loyalty.
Traditional risk management frameworks do not enable the business to innovate and pursue opportunities at the pace of the nimblest competitors. An adaptive approach builds risk intelligence into key processes and the supporting technologies so that the business can move quickly and safely, at every touch point and across every phase of the customer journey. Risk management strategies must also be established for all emerging technologies — the cloud, mobile apps and interfaces with third parties, including fintech collaborations.