The 10th Annual IIF/EY Global Bank Risk Management Survey, “An endurance course: Surviving and thriving through 10 major risks over the next decade”, carried out by the Institute of International Finance (IIF) and EY, observes and reports on changes in how banks manage risk. In this report we note that considerable progress has been made since the crisis, especially in the traditional financial risk areas around capital and liquidity. More recently, risk leaders and their teams have also been innovating approaches to new, or newly emphasized, nonfinancial risks, including cyber risk, conduct, compliance and fraud, and financial crime and money-laundering. A record 115 firms participated in this year’s survey.

The industry’s transition to more digital strategies, business models and operations is also creating new risks and opportunities, such as those associated with industrializing the use of machine learning and artificial intelligence across the enterprise or using cloud across swaths of bank operations. Beyond all these challenges, several tectonic shifts, such as those associated with climate change and geopolitics, will impact banking far more than they have in the past.