On the Horizon - Insights from the Inside

Article

As the financial industry braces for a future shaped by rapid technological change, geopolitical tensions, and regulatory scrutiny, this article launches the On the Horizon series, featuring insights from Chris Smigielski on the critical risks and opportunities ahead. Through a deep dive into AI governance, cybersecurity, and sustainability, Smigielski outlines how institutions can navigate emerging challenges while balancing innovation and compliance.

Nov 25, 2024

Chris Smigielski, Model Risk Director, Arvest Bank

On the Horizon - Insights from the Inside

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Sophisticated cyber threats, AI-enabled fraud, and biases in AI models will be among the most significant risks facing financial institutions over the next three to five years.
Robust governance frameworks, such as the NIST AI Risk Management Framework, are essential for mitigating risks and ensuring transparency in AI technologies.
The collaboration between fintech startups and traditional financial institutions can drive innovation but requires strong oversight to manage compliance and operational risks.
Aligning financial portfolios with sustainability goals presents challenges like inconsistent ESG standards but can be achieved through clear targets, innovative financial products, and strong governance.