Ernst & Young Identifies Cybersecurity as Foremost Concern for 86% of CROs
Emmanuel Addeh in Abuja
Cybersecurity threats have emerged as the dominant concern for risk managers in the banking industry, with a large majority of Chief Risk Officers (CROs) warning that digital vulnerabilities pose the most immediate danger to financial institutions.
According to a survey by Ernst & Young (EY), about 86 per cent of chief risk officers identified cybersecurity risks as the foremost challenge facing their organisations, reflecting growing anxiety over increasingly sophisticated cyberattacks, expanding digital infrastructure and geopolitical tensions that heighten exposure to cyber threats.
In today’s fast-changing financial landscape, the organisation stated that banks must therefore adopt a holistic and forward-looking approach to risk management.
In its 15th annual Global Bank Risk Management report, EY, a frontline global professional services firm, provided a comprehensive and insightful analysis of the evolving priorities and challenges faced by CROs in the banking sector globally.
The survey report, it said, highlighted the dynamic, non-linear, and interconnected nature of risks confronting banks, underscoring the imperative for integrated, strategic risk management in an increasingly volatile and complex environment.
The report also pointed to a renewed focus on credit risk amid softer economic conditions and the rise of private credit, alongside persistent concerns around cyber threats, technology vulnerabilities, and digital fraud, emphasising that successful risk governance requires not only advanced technology and data capabilities but also a cultural shift towards embedding risk as a strategic priority at the highest levels of the organization.
On the imperativeness of the report, EY Managing Partner for West Africa, Anthony Oputa, said the report served as a vital resource for banking leaders seeking to understand and respond to the shifting risk landscape.
“EY remains steadfast in its avowed mission to help financial institutions build stronger, fairer and more sustainable businesses through innovative and integrated risk management practices,” Oputa noted.
According to the report, CROs are increasingly involved in shaping business strategy, leveraging AI and data analytics to anticipate risks and drive informed decision-making.
The report identified cybersecurity and technology risk as the foremost concern for 86 per cent of CROs, followed by credit risk at 62 per cent, and data risk at 41 per cent. Digital fraud and financial crime risk also remain prominent, reflecting the increasing sophistication of threats in digital dispensation.
This evolving risk landscape, it said, demands that banks accelerate the adoption of advanced technologies, with 55 per cent of CROs prioritising AI-enabled capabilities to enhance risk management effectiveness.
Corroborating, Ashish Bakhshi, Head, Clients & Industries Leader, EY West Africa, noted that the risk environment today is characterised by volatility and complexity, driven by rapid technological innovation and shifting regulatory landscapes.
According to Bakhshi, banks must embrace a strategic mindset that balances risk mitigation with growth opportunities, adding that EY is dedicated to partnering with financial institutions to harness these capabilities and build resilient, future-ready organisations.
To manage these high-priority risks, the report stated that 52 per cent of CROs are focusing on improving governance and controls, while 43 per cent are enhancing risk identification and assessment capabilities.
Talent development is also critical, it said, with 29 per cent of CROs emphasising the hiring and development of specific skill sets, and a striking 71 per cent highlighting digital acumen—including technology, data, AI, and programming—as essential competencies for future risk management professionals.
Banking & Capital Markets Leader, EY West Africa, Abiodun Akinnusi, in his remarks, noted that the pace of change in the banking & capital markets was unprecedented. According to him, institutions face not only traditional financial risks but also emerging challenges from digital transformation and evolving customer expectations.
“Our clients are recognising the critical importance of integrating technology, governance, and talent development to build adaptive risk frameworks. EY’s sector expertise enables us to deliver tailored solutions that empower CROs to navigate this complexity and safeguard long-term value”, Akinnusi emphasised.
Looking ahead, CROs, EY explained, anticipate increased regulatory scrutiny, particularly around technology and AI-related risks, with 63 per cent expecting heightened supervisory focus in these areas. Additionally, 51 per cent foresee greater investment in risk data and analytics capabilities to meet evolving supervisory expectations.
“This regulatory environment, characterised by fragmentation and localisation, compels banks to strengthen governance frameworks and operational resilience while maintaining agility,” the report stressed.
