Financial Institutions

Industry Overview

Financial Institutions

Building Resilience to Support Growth

Expanding global wealth and advancements in technology provide financial institutions with opportunities to grow in new markets, but also create risk and human capital challenges that require innovative solutions.

From the volatility created by climate change to geopolitical and financial headwinds to significant organizational threats in the form of regulatory pressures, cyber threats and shifting workforce expectations, the pressure is on across the industry.

The key to achieving success will be agility and resilience. Organizations in the industry face the challenge of assessing and managing their approach to both human and operational risk—including, adopting greater agility through innovation, anticipating future exposures and optimizing risk management to create the organizational resilience necessary for growth.

Top 5 Current Risks

According to our latest Global Risk Management Survey, the biggest risks facing the Financial Institutions industry include:

  • 01

    Cyber Attack or Data Breach

    Cyber attacks are, and will remain, a top risk across all geographies and industry sectors. All leaders need a cyber game plan.

  • 02

    Regulatory or Legislative Changes

    Uncertainty about upcoming regulatory changes affects business confidence, and companies active in multiple jurisdictions must track and comply with a wide variety of complex laws and regulations.

  • 03

    Economic Slowdown or Slow Recovery

    Global economic uncertainty is being fueled by geopolitical volatility and unpredictable inflation and interest rates.

  • 04

    Cash Flow or Liquidity Risk

    Cash flow and liquidity challenges are particularly acute in certain industries, and this is not expected to change down the road.

  • 05

    Tech or System Failure

    Technology failure can result in a loss of income and also have knock-on impacts on a company's reputation.

Report

Better Decisions on Risk Capital and Human Capital for Financial Institutions

Increasingly complex and interconnected global changes continue to unsettle markets and drive economic uncertainty. From regulatory pressures, cyber threats and labor shortages to compressed economic growth and a global climate crisis, pressure on financial institutions (FIs) is mounting on multiple fronts.

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Better Decisions on Risk Capital and Human Capital for Financial Institutions

Article

How Banks Quantify Physical Climate Risk

Climate change is getting expensive. According to Aon, 421 notable disaster events last year generated $313 billion in economic loss, of which only $132 billion (42%) was insured loss; and it has never been more important to understand the risk that a changing climate poses today and in the future. Learn more about how banks quantify physical climate risk. 

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Our Better Being podcast series, hosted by Aon Chief Wellbeing Officer Rachel Fellowes, explores wellbeing strategies and resilience. This season we cover human sustainability, kindness in the workplace, how to measure wellbeing, managing grief and more.

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