In the face of mounting business risks and a landscape characterized by volatility, leaders in the financial institutions (FI) industry are finding it increasingly difficult to secure stability, competitive advantage, and sustainable success.
Petra Schmidt (pictured above), Aon’s global financial institutions commercial leader, said that the industry is navigating through a period marked by rising interest rates, a tight talent market, escalating cyber security risks, and growing geopolitical threats. These factors are compelling FIs to reevaluate their existing frameworks and strategies to balance the management of financial and non-financial risks while pursuing opportunities for future growth.
Amid this challenging environment, Aon suggests a holistic approach to risk management as the key to enabling leaders to make informed decisions, utilize the appropriate tools, and foster innovation. This approach not only addresses immediate challenges but also builds resilience and agility to identify growth opportunities and navigate future uncertainties.
In the era of rapid digitalization, the integration of generative AI, and the blending of traditional banking with fintech culture, financial organizations are urged to evaluate their talent strategies and develop stable talent pipelines. However, the industry is faced with the loss of key digital skills among 70% of financial organizations.
