Financial Crime World

Financial Institutions Face Perfect Storm of Risks

A Perfect Storm of Risks Threatens Financial Institutions in Australia

According to global professional services firm Aon, financial institutions in Australia are facing a perfect storm of risks that pose significant threats to their growth and reputation. The combination of heightened regulatory and media scrutiny, evolving complex and interconnected risks, and increased fear and uncertainty surrounding cyber risk and technology failures is creating a challenging environment.

Key Risks Facing Financial Institutions

  • Conduct risk: concerns around culture issues highlighted by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
  • Reputational risk: negative media attention and public perception can have a significant impact on an institution’s reputation
  • Operational risk: technology failures and system disruptions can compromise business continuity
  • Strategic risk: failure to adapt to changing regulatory requirements and market conditions can lead to financial loss

The Impact of Risks on Financial Institutions

These risks can have a significant impact on a financial institution’s ability to:

  • Attract and retain key talent
  • Manage regulatory change
  • Invest in the future

Aon’s Solutions for Managing Risk

Aon offers a range of solutions designed to help financial institutions identify, mitigate, and transfer risk in the most effective manner. These include:

  • Data analytics and actionable insights
  • Expert advice on regulatory changes, talent and remuneration strategies, leadership development, cyber risk management, and capital optimization
  • Holistic view of an institution’s organisational and people risk exposures

Services for Financial Institutions

Aon’s services are designed to support a variety of financial institutions, including:

  • Lending institutions
  • Superannuation funds
  • REITs
  • Fund managers
  • Wealth management and advisors

By helping financial institutions enhance their employee value proposition, win the war on conduct risk, and optimize their risk-based capital requirements, Aon can help institutions focus on their core purpose of delivering outcomes for their members or clients. With its expertise and solutions, Aon believes that financial institutions in Australia can navigate the perfect storm of risks and emerge stronger and more resilient as a result.