Banks are using a shift in supervisory expectations to rethink risk management, with artificial intelligence at the center of that effort. At the same time, AI is amplifying risk to other areas, including cybersecurity and fraud. This according to the 2027 ProSight Risk Outlook Survey, conducted in collaboration with Oliver Wyman, a Marsh business.

Read More on Fintech : Global Fintech Interview with Andy Jiang, Head of Product, Slash

As threats move faster and AI compresses decision cycles, the strongest institutions are building risk into how the business makes decisions in the first place. That is the real transformation underway.

Among the 160 banking leaders surveyed across risk and business lines, 78% agreed that regulatory requirements have become less prescriptive around how risk processes are performed, while most (87%) view this shift as an opportunity to optimize those processes.

“The shift in regulatory tenor has given risk leaders much more room to ask: ‘Is this the best way to do this work?’” said Jen Guidi, CEO of ProSight Financial Association. “What stands out is what they’re doing with the answer. While they’re using cost savings to re-invest in risk operations, they are sharply focused on doing better risk management and anticipating what’s on the horizon, from working to turn back a surge in fraud to the improvements in data quality that will be needed to optimize further advances in AI.”

AI is functioning as both a substantial threat and an opportunity in this space. It is amplifying cyber, fraud, and model risk while giving risk teams new ways to automate workflows, monitor exposures, and support decisions.

Source link