Season 2 | Ep. 21: Risk Management Hot Topics with Debbie Bianucci, President & CEO, ProSight Financial Association

In the ever-evolving landscape of financial services, risk management stands as a critical pillar safeguarding the integrity and stability of institutions. Recently, the Risk Intel Podcast had the privilege of hosting Debbie Bianucci, the President and CEO of ProSight Financial Association, to delve into key risk management trends in banking. Debbie also unveiled the vision behind the merger of BAI and RMA, culminating in the formation of ProSight Financial Association. Below you can read a summary of the key themes discussed or listen to the entire episode here:

EMBRACING THE SHIFT: FROM FINANCIAL TO NON-FINANCIAL RISKS

In the past, financial risk, including credit risk, dominated risk management in financial institutions. But Debbie points out that the risk landscape in banking has undergone a significant transformation. This was reflected in the findings of RMA’s most recent Chief Risk Officer Outlook Survey, which it conducted in collaboration with global management consultancy Oliver Wyman.

“....One of the main findings in the study was that the greatest proportion of time that CROs are spending is on non-financial risk.” - Debbie Bianucci, President & CEO, ProSight Financial Association

That survey found that Chief Risk Officers are allocating a considerable proportion of their time and resources to non-financial risks, including operational risk and cyber risk. This shift stems in part from increasing regulatory pressure, and is also a reflection of heightened complexity tied to fast-moving technological change, including increased digitization and the advent of generative AI. As financial transactions become instantaneous and technology creates new pathways for fraud, it’s important for financial institutions to consistently review and recalibrate their risk management practices in response, Debbie says.

Learn more about the RMA and Oliver Wyman 2024 CRO Outlook Survey here.

THE IMPETUS BEHIND THE MERGER: COMPLEMENTARY EXPERTISE

The merger of RMA and BAI to form ProSight Financial Association heralds a new era of collaboration and synergy within the industry. As Debbie articulates, the merger was not merely a consolidation of entities but a strategic alignment of complementary strengths. While RMA boasts expertise in commercial banking and credit risk, BAI brings prowess in retail banking and compliance to the table. By bringing these areas of strength together, ProSight Financial Association will endeavor to deliver unparalleled support and resources to financial institutions. Debbie shared that the merger not only enhances efficiency but also fosters innovation, bringing together the complementary strengths of each organization to better address the multifaceted challenges facing the industry today.

CHARTING THE COURSE: PROSIGHT FINANCIALASSOCIATION'S FORWARD-THINKING APPROACH

Looking ahead, ProSight Financial Association's future roadmap looks bright. By integrating the expertise of two respected legacy organizations, ProSight will provide comprehensive solutions that transcend traditional boundaries. For instance, the organization's focus on combating fraud exemplifies its commitment to addressing multifaceted challenges holistically. In an era when fraud permeates both retail and commercial banking domains, ProSight Financial Association's amalgamated expertise positions it as a formidable ally in the battle against financial crime.

From this conversation with Debbie, the importance of staying abreast of technological advancements and of harnessing tools and techniques to further fortify risk management frameworks is clear. One example of leveraging technology is our longstanding partnership with RMA to deliver the RMA Risk Maturity Framework, powered by SRA Watchtower tool, which enables mutual customers and members to self-assess their overall risk management program and identify gaps. - Learn more here.

CONCLUSION: PIONEERING A NEW PARADIGM RISK MANAGEMENT

Our conversation with Debbie Bianucci offers a glimpse into the shifting landscape of risk management. By embracing the complexities of the digital age and harnessing the collective wisdom of its constituents, ProSight Financial Association is positioned to reshape risk management by supporting and strengthening the financial services ecosystem.

Debbie also underscores the pivotal role of risk management as financial institutions navigate a fast-moving and challenging environment. As ProSight Financial Association embarks on its transformative journey, we are eager to see how it realizes its vision and we look forward to having Debbie back on the show in a future episode to share more insights on their journey.

‍Watch the full video of this episode below and please be sure to connect with your RMA, BAI or Watchtower representative to learn more about our partnership.

Learn more about ProSight Financial Association