Financial services risk management

A new era for risk

The role of the Chief Risk Officer (CRO) and of Risk management is under considerable focus and attention and many of the previous assumptions about what was acceptable or adequate have become open to challenge.

Many institutions and their regulators are now redefining the role of risk management. While the demands of effective risk management and how to meet them can be complex and varied, PwC believes the key role of CROs and their teams is as follows:

"The role of the CRO is to actively and intrusively manage risk within the organisation. This is not the traditional 'second line of defence activity' seen in the past but a first line activity with full and specific responsibility for the specific management of overall risk and the associated adequacy of capital within the business. This does not mean that other functional leaders can abdicate responsibility for risk management within their function rather, they manage the risks relevant to them in the same way as they have responsibility to manage local finance, human resources, or any other relevant activity. The CRO has executive responsibility to manage overall risk in the same way as the CFO manages overall finance."

Read our insights to find out more.

Key issues facing FS companies

  1. Assessment, design and implementation of more effective risk management frameworks
  2. Risk measurement, process improvement and management
  3. Requirements definition, selection or development, and implementation of risk technology
  4. Financial asset/instrument valuation and risk quantification
  5. Economic capital definition and management
  6. Embedding risk management practices so that they become business as usual
  7. Organisation, design and resourcing of the risk management function

PwC risk specialists

PwC is constantly working with leading financial service organisations and consequently constantly challenging existing structures, accepted norms and constructs in a process of achieving continuous improvement.

PwC's Financial Services Risk and Capital Management practice in the United Kingdom consists of over 200 dedicated risk and capital professionals. These professionals provide services in the identification, measurement, monitoring and management of risk and it's interaction on the assessment and management of capital adequacy. More on our experience

The UK practice is part of an global network of over 900 Risk and Capital Management specialists based in most financial services centres around the world. This gives us the ability to draw upon local expertise to support international clients. More on financial services risk