While financial markets have never been predictable, the increasingly interconnected nature of global information systems—and the speed with which an event in one part of the world ripples across markets and supplies chains globally—make having strong risk management systems indispensable.
COVID-19 shed light both on the importance of robust risk management solutions, and highlighted areas where there were opportunities to build on and improve those systems.
Now more than ever, risk managers—and more commonly, Chief Risk Officers—are in the spotlight. People turn to them more frequently and with heightened expectations for what they can ensure and achieve in the face of headwinds and uncertain markets. In addition, substantial regulatory concerns persist and, while they have taken something of a backseat in the face of the pandemic, they will continue to be important considerations.
What does it all come down to? The numbers and the technology. Having the most comprehensive and reliable data sets is the foremost priority for all involved—from financial institutions to corporations. But, in tandem, firms need powerful platforms and tools that ingest and analyze data, mitigating significant risk in the process.
