PwC and the Centre for the Study of Financial Innovation (CSFI) have once again joined forces to learn what our banking industry leaders see as their biggest threats. And we've found technology risk, social media, the macro-economic environment and conduct practices at the top of 24 risks for the New Zealand banking industry.
Our findings also show that New Zealand respondents are more optimistic than in any other country we surveyed, registering the lowest levels of overall anxiety and the highest levels of preparedness. Low on the list of concerns in New Zealand are regulation, corporate governance and quality of risk management.
Banks, however, are recognising they cannot only be concerned with their own systems and processes but also with related reputational risks arising from third-party outsourcing and offshoring activities. Banks will need to carefully manage risks while ensuring they are forward looking and focused on positioning themselves for growth in the longer term.
The top risks are outlined below. For the full list, please see our report or contact us.
|1||Macro-economic environment||Technology risk|
|4||Technology risk||Conduct practices|
|5||Political interference||Pricing of risk|
|6||Quality of risk management||Criminality|
|8||Conduct practices||Political interference|
|9||Pricing of risk||Reputation|
|10||Business model||Credit risk|