Second Annual Risk Conference 2024
What it is about
Bismark Rodríguez, partner in Risk and Transaction Advisory and consulting leader at PwC Interamericas, explained at the Second Annual Risk Conference (September 26, 2024) how the economy and geopolitics require seeing strategic risk differently.
The 35-slide presentation, designed to be interactive, reviews why today's world is different, the geopolitical hot spots that can affect businesses, the threats organizations feel most exposed to, the evolution of risk over the last five years, how geopolitical risk affects banks and what changes organizations need to become pioneers in strategic risk.
Objectives
- Explain why geopolitical and economic risks must be integrated into strategic risk and risk appetite.
- Show how those risks can be transmitted to banks' traditional prudential risks.
- Propose how to move from seeing risk as a threat to seeing it as an opportunity for value creation.
Key takeaways
- Political, environmental, social and economic risks are unpredictable and hard to assess, so they act more as a risk factor than as a specific risk.
- Organizations say they feel very exposed, over the next 12 months, to inflation, cyber risks, macroeconomic volatility, digital and technology risks, climate change and geopolitical conflict.
- Geopolitical risk can drive a bank's prudential risks: greater market volatility, higher loan prices and lower profitability.
- Barriers to a better view of risk include linking risks to financial planning and visualizing geopolitical impacts in scenario analysis.
- One of the greatest risks today is doing nothing: scenario analysis and stress tests are key tools, and "pioneers" report better results by reframing risk as an opportunity.
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