A recent report by Protecht on financial services risk and resilience has revealed a number of key and unexpected findings.
The ‘UK 2024 Financial Services Risk and Resilience Outlook’ research by Protecht, based on a survey of 400 key UK financial organizations, has surfaced several crucial findings.
These include geopolitical uncertainty. A significant 26% of the respondents identify geopolitical events, including Russia-Ukraine tensions and US-China relations, as the top critical risk area.
Following closely, 24% consider liquidity and access to capital as primary concerns. The survey reveals a continued reliance on manual processes in enterprise risk management (ERM), indicating a scope for digitalisation.
Meanwhile, about 35% of financial organizations are using generative AI but show limited interest in expanding its use in the coming year. Furthermore, 59% of organizations are allocating significant budgets towards integrating operational resilience into their ERM frameworks.
An overwhelming 68% plan to increase investment in third-party risk management solutions.
Tsambika Jeffries, VP at Zepz, acknowledges the resonance of these findings, emphasizing the impact of geopolitical uncertainty and the importance of operational resilience and technological adoption, especially AI, for FinTech firms.
Gary Lynam, Managing Director EMEA at Protecht, reflects on the survey, stating, “This survey paints a picture of a financial services industry at a crossroads, with technology playing a pivotal role in navigating these changes.” He underscores the need for aligning risk management with technological advancements for sustainable and efficient operations.
Sean Titley, Director at Metro Bank, also finds the survey insightful, particularly regarding geopolitical risks and AI. He notes Metro Bank’s focus on enhancing operational resilience and monitoring risks related to third parties, stressing the importance of a comprehensive approach.
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