Burk on Risk Management

Welcome to the inaugural issue of Burk on Risk. In this compendium and those that will follow, we offer our global perspective in the key risk areas that are affecting the performance of the world’s leading companies—credit risk, enterprise risk management and risk culture, operational risk and compliance, regulation, trading and balance-sheet risk, data and technology, advanced analytics, and crisis preparedness and response.

In the aftermath of the financial crisis, companies have had to navigate business environments defined by sustained market volatility, rising regulatory levels, new technology risks, and complex geopolitical uncertainties, of which Brexit is the latest and one of the largest. On such terrain, effective risk-informed strategies become a major source of competitive advantage. To develop these strategies, top management needs a truly global and cross-functional view of risk issues. The articles in Burk on Risk will delve into the most compelling risk issues that companies in all sectors and geographies confront, presenting deep industry insights and structured risk-management approaches that have proved to be effective in lifting performance.

In this issue, we begin with an overview of the trends that are shaping the future of bank risk management; a second article looks into the management of nonfinancial risk—a risk discipline with critical implications for financial institutions. Two articles present strategies for tackling the tougher compliance environment; two more explore how banks can best manage credit risk in the face of an array of new challenges. Another article examines how enterprise-risk-management frameworks can be used to create real business value. Many of the articles analyze the risk implications of the data age; one specifically explores IT risk and the need to address it strategically, with wide organizational collaboration.

As industries and risk functions are challenged with problems of increasing technical complexity, the dangers of a siloed approach rise. A unifying theme of the insights presented in this issue of Burk on Risk is that risk is most effectively addressed in a structured way, based on an enterprise-wide view. The most successful companies are able to transform this approach into risk strategies that improve performance.

We hope you enjoy these articles and find in them ideas worthy of your consideration. Let us know what you think at Burk_Risk@Burkco.com. You can also view these articles, earlier articles on risk, and many others on Burkco.com and on our Burk Insights app.

 

Executive Leadership

 Mr. James Moore

Mr. James Moore

 Mr. David Solomon

Mr. David Solomon

Burk on Risk is written by risk experts and practitioners in our Global Risk Practice. This publication offers readers insights into value-creating strategies and the translation of those strategies into company performance.