Identifying emerging risks

Brand protection and the ability to attract and retain key staff have emerged as key risk factors for companies operating in the Australian financial services sector, according to AonAustralia national financial institutions practice group head Tim Farren.

He said the growing popularity of exotic risk products also presented challenges.

Farren has told a conference dealing with professional indemnity that corporate governance, talent management and an increased reliance on technology are the top three risk concerns of banks and financial institutions.

“Banks and financial organisations face a myriad of risks within their respective environments,” he said. “Every strategy we develop is shaped by risk, every market we develop creates new exposures, and each new decision brings with it new contingencies which must be assessed and managed.”

Farren said many banking and financial institutions were rightly concerned about brand and image in circumstances where issues such as corporate mishaps, wayward business conduct and product quality had caused significant damage to the reputation of numerous Australian and international companies.

He said the rise of stakeholder activism and its impact on brand and reputation was an issue that banks were watching closely.

“The ability to attract and retain key staff is a continuous concern for Australian banking and finance executives,” Farren said.