New challenges and priorities for CROs in 2022 - Banking blog

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In 2018, Deloitte Switzerland established a Risk Executive Network (REN) for CROs in leading Swiss banks, to exchange views about risk-related priorities within the financial services industry. The REN consists of 35+ CROs and holds four sessions each year.

In March 2022, Deloitte Switzerland carried out a survey to identify the strategic priorities of CROs. The survey focused on priorities in digitalisation, risk management, regulations, and strategy/governance. There are priority issues for CROs in all four areas, but we observe a strong trend in their concerns towards digitalisation in risk management and corporate governance issues in this year’s assessment. 

See below the overview of the results for 2022:

20220411_CRO_REN_Article_Diagram

  • Digitalisation
    With the increase in digitalisation in the banking industry, it comes as no surprise that CROs are giving attention to identifying digital solutions for risk management. Digital solutions can optimise the ways in which CROs manage risks within their organisation. We will be providing an overview of such solutions in one of our REN events in 2022. Furthermore, the survey found that CROs now tend to give less priority than in the past to cloud infrastructure and leveraging of internal infrastructures.

  • Risk management
    Following the surge in remote working during the COVID-19 pandemic, cyber risk now ranks among the highest priorities for CROs. Risk appetite frameworks and effective internal controls remain another priority, as the risks that need to be addressed are constantly changing. Furthermore, the survey found that less priority is given to thrid party risks.

  • Regulations
    Regulations for the risk function remain high among the key priority topics for CROs, in particular, FINMA reviews of operational risk, and emerging regulations with respect to operational resilience and the implementation of the remaining Basel 3 agenda in Switzerland. The focus is not only to be effectively compliant but also efficient in doing so.

  • Strategy and governance
    The current political and economic uncertainty also puts governance considerations at the top of the agenda for CROs. The role of the CRO within the corporate governance structure becomes critical in such times. A focus on the CRO function of the future has been emerging in recent times, with various financial institutions opting to create hybrid organisational set-ups with the compliance function, and shifting away from traditional governance arrangements. Because of these developments it is not surprising that CROs see increased potential from optimising core processes along the 3 lines of defence (front-to-back process optimisation). Consequently, Deloitte will also b organising an REN event to discuss corporate governance topics.

Deloitte's Financial Service Transformation team values its regular discussions with CROs and other executives about the changing agendas of banks. Please contact us if you would like more information or are interested in Deloitte’s Risk Executive Network.

Key contacts

Marc-blog

Dr. Marc D. Grüter - Partner, FSI Risk, Regulatory & Compliance Lead

Marc is a Partner in Deloitte’s Risk Advisory practice and a member of the Financial Services leadership team at Deloitte in Switzerland. Within Deloitte Switzerland he is in charge of Risk, Regulatory, Compliance and Transformation topics for Financial Services. Marc holds a PhD degree in Bank Management, Finance, Risk & Regulatory Management from the University of Basel. He has over 20 years of experience in the global Financial Services sector, as well as a solid background in Strategy and Management which he gained from working at a number of leading global Consulting firms.
Within his project portfolio, he focuses on:

  • Transformation of risk and compliance functions
  • Process optimisation – reengineering, efficiency improvement, cost optimisation
  • Automation, transformation and application of advanced analytics tools

Email | LinkedIn

Erdal blog

Erdal Kaplan - Senior Manager, Risk Advisory, FS Transformation

Erdal has over 7 years of consulting experience with financial services institutions. Within his project portfolio, he focuses on:

  • Regulatory-driven transformation
  • Non-financial risk management
  • Transformation of risk and compliance functions

Email | LinkedIn

Vlad

Vlad Ciocan - Senior Manager, FS Transformation

Vlad is a transformation expert within Deloitte’s Risk Advisory practice. He supports clients in designing and implementing complex business transformation projects within the areas of risk and client advisory, focussing on retail and universal banks and asset managers in Switzerland. Vlad has over 16 years’ experience in financial services and consulting. He joined Deloitte from a leading Swiss comparison site where he managed the mortgage business and was CEO of their mortgage broker.

Email | LinkedIn

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