In 2025, everyone is navigating a much more complex and volatile landscape and Financial Services is certainly affected. Tariffs, interest rates, bond yields. Throw in geo-political instability, supply chain turbulence, war. The list goes on.
So, based on trends in tech, economics, geopolitics, and society, here are 10 major strategic risks and mitigation approaches that every business CxO needs to be thinking about as part of their strategic plan. Check out our full download of more risks and 30+ mitigation strategies & tracking KPIs further down.
| Risk | Mitigation Strategy 1 | Mitigation Strategy 1 KPI |
|---|---|---|
| Regulatory Compliance Risks | Implement continuous compliance monitoring and reporting systems | Compliance audit success rate |
| Cybersecurity and Data Privacy Threats | Invest in advanced cybersecurity technologies | Number of cybersecurity breaches |
| Market Volatility and Financial Risks | Diversify investment portfolios and hedge risk exposures | Portfolio risk diversification index |
| Talent Acquisition and Retention | Offer competitive career development programs | Employee turnover rate |
| Operational Risks (Processing, Systems Failures) | Automate key processes and improve system redundancies | System downtime hours |
| Reputational Risks | Proactively manage brand and communications | Brand sentiment index |
| Changing Customer Expectations | Enhance digital and mobile banking experiences | Customer satisfaction with digital channels |
| Innovation Stagnation | Foster a culture of continuous innovation | Number of innovation initiatives launched |
| Third-Party and Outsourcing Risks | Conduct thorough due diligence for third-party vendors | Third-party risk assessment completion rate |
| Leadership and Succession Risks | Implement leadership development and succession planning | Leadership pipeline readiness |
| Fraud and Financial Crime | Deploy AI and analytics for fraud detection | Fraud detection rate |
If you’d like to download this and another 30+ mitigiation strategies with suggested Risk Management KPIs to track progress then download your Financial Services Sector Strategic Risks, Mitigations and KPIs..
Secret sauce for any FS CxO
If you'd like to see how to easily manage & track all of this then....
