Banks across the world are overhauling their risk management frameworks as cyber threats, digital fraud and credit pressures reshape the global financial system, a new report by Ernst & Young (EY) has revealed.

The firm’s 15th Global Bank Risk Management Survey, unveiled yesterday, showed that cyber security and technology vulnerabilities now rank as the biggest risk facing banks globally, with 86 per cent of chief risk officers identifying them as their primary concerns amid the rapid expansion of digital banking and financial technology.

The report also highlighted renewed concerns around credit risk, reflecting softer global economic conditions and rapid growth of private credit markets, with 41 per cent pointing to data risk as another major challenge confronting financial institutions.

According to the survey, the increasingly complex and interconnected risk environment is forcing banks to rethink traditional risk management models and integrate risk oversight more deeply into strategic decision-making.

Managing Partner of EY in West Africa, Anthony Oputa, said the findings underscored the urgent need for banks to adopt a holistic and forward-looking approach to risk governance.

“The risk landscape confronting financial institutions is evolving rapidly. Bank leaders must now embed risk management at the heart of their business strategy to navigate volatility and safeguard long-term value,” Oputa said.

Industry analysts said the findings reflected the profound transformation taking place within the global banking sector as financial institutions adapt to digital disruption, geopolitical tensions and heightened regulatory oversight.

Head of Clients and Industries Leader at EY West Africa, Ashish Bakhshi, said today’s risk environment is defined by volatility and rapid technological change, requiring banks to strengthen governance while investing in innovation.