• Global banks face rising cyber threats and digital risks as technology reshapes finance
• Eighty six percent of CROs rank cybersecurity and technology risk as their top concern
• Credit risk and data risk remain major priorities for banking risk leaders
• Banks are increasingly deploying AI and analytics to strengthen risk management
• Governance frameworks and risk identification capabilities are being expanded
• Digital and technology skills are becoming essential for the next generation of risk professionals
• Regulatory scrutiny around AI and technology risks is expected to increase

Banks around the world are being urged to adopt a more integrated and forward looking approach to risk management as technological disruption, cyber threats, and regulatory complexity reshape the financial landscape.

A new global report examining the priorities of chief risk officers indicates that the nature of risk facing financial institutions has become more dynamic and interconnected, requiring banks to rethink how risk functions operate and how they support strategic decision making.

The 15th annual Global Bank Risk Management report by EY highlights how rapidly evolving threats are pushing banks to embed risk management more deeply across their operations rather than treating it as a purely defensive function.

According to the survey, cybersecurity and technology related threats have emerged as the most pressing concern for risk leaders across the banking sector.

Eighty six percent of chief risk officers identified cyber and technology risk as their top priority, reflecting the growing exposure of financial institutions to digital vulnerabilities and operational disruptions.

Credit risk ranked as the second most significant concern, cited by sixty two percent of respondents, while forty one percent identified data risk as a major issue.

The rise of digital banking channels and expanding use of data driven systems has also intensified concerns around digital fraud and financial crime.

The findings suggest that banks must strengthen governance structures while adopting more advanced technologies capable of detecting emerging threats in real time.

Anthony Oputa, Managing Partner for West Africa at EY, said the report provides critical insight for banking leaders navigating a rapidly evolving risk environment.

“The report serves as a vital resource for banking leaders seeking to understand and respond to the shifting risk landscape,” he said.

The growing complexity of risk is also expanding the role of chief risk officers inside financial institutions.

Rather than focusing solely on oversight and compliance, many CROs are becoming strategic partners to business leaders as banks adopt new technologies and digital capabilities.

Artificial intelligence and advanced analytics are playing an increasingly central role in that transformation.

According to the survey, fifty five percent of CROs said they are prioritizing AI enabled tools to strengthen their risk management systems and improve their ability to anticipate emerging threats.

Ashish Bakhshi, Clients and Industries Leader for West Africa at EY, said the modern risk landscape is defined by rapid technological change and shifting regulatory expectations.

“The risk environment today is characterised by volatility and complexity, driven by rapid technological innovation and shifting regulatory landscapes.

“Banks must embrace a strategic mindset that balances risk mitigation with growth opportunities,” he said.

To respond to these challenges, many banks are investing in stronger governance frameworks and improved risk identification capabilities.

The survey found that fifty two percent of CROs are prioritizing stronger governance and control frameworks, while forty three percent are enhancing their risk identification and assessment processes.

At the same time, financial institutions are increasingly focused on strengthening talent capabilities within their risk functions.

Twenty nine percent of CROs said they are prioritizing recruitment and development of specialized risk skills, while seventy one percent indicated that digital expertise including technology, data analytics, artificial intelligence, and programming is becoming essential for the next generation of risk professionals.

Abiodun Akinnusi, Banking and Capital Markets Leader for West Africa at EY, said the pace of transformation across the banking sector is forcing institutions to confront both traditional financial risks and new challenges linked to digital innovation.

“Our clients are recognising the critical importance of integrating technology, governance and talent development to build adaptive risk frameworks. EY’s sector expertise enables us to deliver tailored solutions that empower CROs to navigate this complexity and safeguard long term value,” he said.

Regulatory pressure is also expected to intensify in the coming years. Sixty three percent of CROs said they anticipate increased regulatory scrutiny, particularly in areas related to technology governance and artificial intelligence risk.