Baker McKenzie partnered with Risk.net in its annual ranking of the top operational risks for 2022. The report is based on interviews and in-depth discussions with 100 chief risk officers, heads of operational risk and senior practitioners at financial institutions, including banks, insurers, asset managers and infrastructure providers.
The top ten risks identified for 2022 are:
- IT disruption
- Theft and fraud
- Talent risk
- Geopolitical risk
- Information security
- Resilience risk
- Third-party risk
- Conduct risk
- Climate risk
- Regulatory risk
IT disruption remains top consideration among risk practitioners in this year’s ranking. The two new entrants in this year’s list – talent risk and climate risk – represent a shift in organizational thinking as companies grapple with the current talent squeeze and the increasing focus on environmental, social and governance (ESG) factors.
Completing the list are the same risks as last year’s, but in varying degrees of importance – geopolitical risk rises to fourth given recent developments. Other entries in the list such as resilience risk, conduct risk, and regulatory risk reflect current and emerging priorities as we transition to the post-pandemic economy.
Watch the video interview with Christoph Kurth, covering the key themes emerging from the Top 10 Op Risks 2022 survey and how financial institutions can better manage and mitigate the impact of operational risk in the months ahead. You can also read the editorial Q&A with Karen Man, “Emerging Trends in Op Risk,” where she discusses emerging op risks in the wake of the COVID-19 pandemic, a rise in cyber attacks, concerns around conduct and culture, and the complexities of geopolitical risk.