Even with the financial services market in a constant state of evolution, many banks continue to use the same risk assessment methodology year after year.
Banks that regularly revisit and update their risk assessment methodology can better quantify and mitigate the risks they’re facing. But if your organization has a flawed risk assessment methodology, then it might be understating or overstating its risks. It also might be missing key details that put profitability and growth at risk.
While doing things the same old way can offer a certain level of comfort, regularly evaluating and adapting your risk assessment methodology gives you better opportunities to identify new risks that affect your bank.