AI is pushing bank chief risk officers into a balancing act: increasing risks while promising to strengthen risk controls.
The Banker was given an exclusive preview of the findings of the 15th annual EY/Institute of International Finance Global Bank Risk Management Survey. The report indicates that CROs are trying to take a broader view of AI – weighing the opportunities of innovation against the risks of adoption across the business – while building oversight models that can keep pace with rapidly advancing deployments.
The survey shows that concerns about AI have solidified cyber and technology risk as CROs' top priority for the next 12 months. Respondents link AI to expanding cyber, data, technology and talent risks, and describe efforts to strengthen governance as they assess where AI increases risk.
CROs also see AI and other advanced tools as essential to managing the most urgent risks, including financial risks, facing what the report describes as a “risk-versus-opportunity paradox”: whether AI will create more risk than it will help risk teams detect and mitigate.