EY has carried out a survey to explore operational risk and operational resilience maturity in Nordic banks.
Key findings of the report include:
- Meeting new regulatory requirements is a significant challenge for Nordic banks. It is essential for banks to further streamline their response mechanisms to newly introduced regulatory requisites, such as the Capital Standardized Measurement Approach (SMA), the Digital Operational Resilience Act (DORA), and principles set forth by the Basel Committee on Banking Supervision (BCBS). The survey report looks at progress in these areas.
- The survey found that Nordic banks exhibit mature practices in areas such as risk appetite reassessment, ICT risk management programs, risk indicator formulation, control monitoring frameworks, proactive board involvement and real-time disruption management. However, despite this growth, some smaller banks show less maturity than larger ones.
- Nordic banks must continue to innovative in adopting new technologies and processes as part of their risk management strategies. Key areas for improvement include integrating artificial intelligence within their systems and operations and optimizing data usage. The survey also highlights the need for improved regular risk assessments, stress tests and the adoption of analytical tools to enhance operational efficiency.
