The banking industry’s recent rough going has been painful, jarring—and informative.

Recent high-profile risk management failures have shown how consequential an inadequate balance sheet can be to a financial institution, its clients, and the greater economy. Meanwhile, CFOs in every sector must get risk management right to guide their companies through a  formidable economic environment, with interest rates and inflation still on the rise.

Building a resilient risk management approach is critical for today’s businesses to handle diverse financial risks and avoid a billion-dollar failure. The proper balance of risk and return brings together several key elements, including short-term decisions, upskilling talent, and a solid understanding of the links between business drivers and risk. With a strong operating model, governance, and capabilities—all absent in the recent US banking failures—a company’s finance and treasury function will have the tools, data, and technology it needs to help the company respond to volatility

Contenido elaborado por Boston Consulting Group