McKinsey on Risk, Number 1, Summer 2016

Banks have made dramatic changes to risk management in the past decade—and the pace of change shows no signs of slowing. Here are six initiatives to help them stay ahead.

With credit and market risks now under better control, the focus is shifting to nonfinancial risks. Managing these well will require big shifts in banks’ practices.

The traditional approach is losing effectiveness. Banks must turn the page and build a new model.

Banks can no longer manage loan books in isolation. A new survey reveals how portfolio managers are dealing with growing complexity.

Technological risks are becoming more prominent—and more dangerous. Six principles can guide banks as they manage them.

Leading insurers are retooling the role of their risk function from incident response and compliance to an essential partner in advancing the business strategy.

To withstand new regulatory pressures, investor expectations, and innovative competitors, banks need to reset their value focus and digitize their credit risk processes.

The first round of Europe’s new supervisory process is in the books, and the next one is under way. Banks are likely to face new challenges from heightened supervisory expectations.