Cybersecurity has returned to the top of the list of near-term risks for banks around the world, according to the latest EY and Institute of International Finance (IIF) bank risk management survey. As with past studies, the 2022 results present CROs’ views on the most urgent issues facing their organizations, and those that they expect will take on more importance in the next three to five years. The 12th edition of this joint report is based on survey data from 88 banks across 30 countries.

Cybersecurity is viewed as the top year-ahead risk, followed by credit and environmental risks, according to the 12th Annual EY/IIF Global Bank Risk Management Survey - “Seeking Stability within Volatility: How Interdependent Risks put CROs at the Heart of the Banking Business.”

Key findings from this year’s survey include:

• Geopolitical risk adds uncertainty to economic turbulence, with varying impacts across regions.
• Cyber threats top the agenda, due to their ever-increasing complexity and constant evolution.
• Credit risk remains a high priority as banks look out for hidden risks that may materialize in the looming economic downturn.
• From new products and business models to digital assets and ecosystems, customer growth and product innovation strategies demand CRO attention.
• CROs are looking for more adaptable and agile teams to manage risks across the business and boost performance within their own functions.

World events and external forces have combined to complicate traditional risk management categories, expanded responsibilities and rearranged priorities for CROs in the banking industry. The complex interplay between overlapping risks and external and internal forces can result in risk issues moving quickly and in unexpected ways.