Digital transformation and technology rank as the biggest concern for global banks and insurers in the 2021 operational risk scenarios report published risk association, ORX.
In 2021, technology makes up 13% of all scenarios and the greatest proportion of new uploads (16%). Around 14% of the library relates to a cyber-related scenario category, with malware, phishing and ransomware attacks all included.
Popular scenario narratives this year focus on the extent to which process and control failures in IT lead to severe losses across data management, IT change management and any reliance on IT third parties.
Steve Bishop, head of risk management programme and insurance at ORX said: “So much of how the financial industry has changed since the pandemic began has centred around being exposed and vulnerable to technology related risks. In particular, this has been driven by the race to adapt to new ways of working and businesses pivoting to moving operations online. It’s no surprise to see therefore that the digital agenda is driving the 2021 Scenario Library. We very much expect this trend to continue and will be focusing on digitalisation in many of our 2022 ORX activities’.”