Non-Financial Risk (NFR) Leaders | CeFPro® Research
NFR Leaders is based on responses from professionals and provides a ranking of the top 10 non-financial and operational risks, key investment priorities, and a deep dive into some of the most influential themes.
The NFR Leaders report has three key priorities:
Ranking of top non-financial risks
Key investment priorities
Deep dive into key non-financial risks
Non-Financial Risk (NFR) Leaders report provides a detailed and comprehensive insight into the key non-financial and operational risk trends and opportunities over the coming year. With nearly 1,000 respondents to the NFR survey, CeFPro® gathered detailed and comprehensive data from non-financial and operational risk professionals to base the findings of the report. Backed by the NFR Leaders Advisory Board consisting of more than 40 independent and experienced professionals across a range of organizations and covering all disciplines, this is the most comprehensive study on non-financial and operational risks.
NFR Leaders provides an overview of the current and future trends within non-financial and operational risks alongside a deep dive into some of the most influential topics on the horizon.
The report provides an analysis of where the key risks are now, in the immediate future, and where investment priorities lie for financial institutions. The report further provides a comprehensive review of the critical challenges allowing industry professionals to benchmark their status to where the industry is, the direction of travel, and an assessment of dedicating resources required.
ADVANCE YOUR PROFESSIONAL DEVELOPMENT
Key benefits of reading NFR Leaders include:
Gain a comprehensive overview of the non-financial risk sector and valuable insight into why these risks should be at the top of your risk radar.
5+ years of trend and pattern analysis
A historical base allows a better understanding of the potential direction of current and future investment priorities.
Independent analysis and industry insight
Results are determined through independent analysis and informed by nearly 1,000 knowledgeable industry professionals offering global input.
Guidance from the NFR Leaders Advisory Board
The NFR Advisory Board, comprised of experts across each risk silo/theme to provide diversity in views across the top 10 rankings, provides a consolidated view from the industry.
NFR LEADERS PREVIEW
Cybersecurity dominates in a volatile world
As we emerge from the grips of the pandemic and global economies continue their efforts toward recovery, economic and social volatility appears to have influenced the 2022 rankings. The survey was conducted at a time when geopolitical risks were at a particular high, with the escalation of the conflict in Ukraine. This catalyzed a series of risks from supply chain issues, civil unrest, market fluctuations, and political tensions, to humanitarian and social crises.
Given the nature of threats, speculation circulated about the potential of heightened cyber risk. Organizations were encouraged to bolster their cyber defenses in light of the conflict, which could be a contributing factor behind cyber risk emerging as the leading non-financial risk for this year…
Top 5 NFR ranking:
Measuring and managing attacks against an organization and/or department or individual. Attacks can include phishing, email links, external hackers, and ransomware.
ESG includes the risks associated with a diverse range of issues such as climate change, greenhouse gas emissions, deforestation, biodiversity, customer and employee relations, labor, human rights, supply chains, board management practices, diversity, equity and inclusion, compliance, and more.
Challenges of conflict, internal and external events, and politics (domestic or international) that impact an organization or business operations.
Risks associated with the relationships and services provided by external suppliers. Including fourth parties and further external parties used by an organization to fulfill operations and tasks.
Preventing, adapting, responding, recovering, and learning from operational disruptions. Alongside ensuring continuity and recovery of critical business processes in adverse operational events.
FIGURE A. How important are the following investment areas for 2022 (importance of spend)?
Does this translate to spend?
When analyzing investment priorities in Figure A, some disparities being to emerge, further highlighting the reactive nature of the risk rankings. The top three investment priorities align closely with the 2021 risk rankings, which saw a high technology focus as resilience, technology/IT risk, and cyber risk made up the top three.
The results could be interpreted as demonstrating that, although teams can be reactive in managing risks, they are not necessarily investing the requisite time and resources into these areas, instead prioritizing technology enablement and security for longer-term strategic direction.
One of the key investment areas for 2022 is data, ranking as the second-highest investment priority. This is in stark contrast to its risk ranking, where it did not even feature in the top 10. However, its importance as an investment priority aligns with the strong focus on technology – without accurate and complete data, investment in technology and IT projects could be incomplete.
CeFPro®'s unique research process
CeFPro® offers a unique industry perspective and research process, positioned as one of the only entirely industry-led research providers delivering annual insights on the non-financial risk sector.
- Advisory board input throughout allows for an independent source of insight
- Survey results with a global perspective from industry practitioners
- Interviews at CeFPro® events with key industry players
- 1-on-1 interviews with independent experts to validate results, provide analysis and interpretation
- Analysis and write-up from CeFPro®’s analysts and editorial team
What is the industry saying about NFR Leaders?
Regulators and shareholders expect that firms are using every tool at their disposal to assess their own independent progress and keep a watchful eye on how non-financial risk themes evolve across the industry.
I hope the report will provide a current pulse of new emerging risk themes and any areas that appear to be maturing. The challenges that industry peers are experiencing are valuable insights that we can learn from while allowing us to operate proactively instead of reactively
The significant shifts in top non financial risks over the past year and their relative priority for investment demonstrates more than ever that the rapidly changing risk landscape requires frequent oversight and response from senior leaders.
This research report is important because it has been compiled based on extensive research from experts in their field. The collective intelligence of diverse leaders gives this report gravitas and kudos that makes it an essential read.
The NFR Leaders report is informative, comprehensive and one of the best information sources in the marketplace. I look through it to identify new risk and investment trends which enhance my capabilities to support our clients. Since the NFR Leaders report started, it has established itself as a valuable strategic tool to challenge conventional thinking and spot investment trends which could change the risk landscape and thus our management of it.
I have great confidence in the relevance and importance of the top NFR risks and investment priorities detailed in the NFR Leaders report… Practitioners can distil valuable information from the NFR Leaders report to evaluate direct and indirect program impacts across the risk spectrum.
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