Risk plays a critical role in shaping the innovative ethos many banks have embraced, and risk leaders hold a unique position because they not only empower innovation efforts through risk modeling but also have an enterprise-wide advantage. Since risk leaders have the numbers, models, and insights, they can help drive the mindset shift within an open and innovative financial institution. But this also creates a choice for risk managers: facilitate innovation or resist it due to the risks of modernization.
This playbook explores how risk managers can allow for innovation while ensuring that the financial institution’s goals do not place too much risk on the organization. Risk leaders can achieve this by: