‘CROs must consider role of tech’

“When our IT organizations are struggling to ensure they have enough skilled cyber resources, the situation for risk teams becomes even tougher. However, we take some comfort that many CROs in Malaysia are increasingly recognizing the need to enhance cyber capabilities within the risk function.”

Sumit Narayanan, EY Asean Insurance Leader, said that the shortage of cyber risk specialists, combined with stagnant budget andheadcountprojections,means that CROs must also consider the increasing role of technology solutions in monitoring and identifying risk.

“The CROs in our survey are especially looking for expertise in cyber and IT security, data analytics and big data, machine learning, anti-money laundering and artificial intelligence (AI). Finding the budget and resources to invest in these areas are proving problematic.

“Risk functions must therefore find the right balance between securing scarce talent and investing in new technologies,” said Narayanan.

In addition to addressing transformation in their own functions, the insurance CRO’s role itself is evolving — shifting from traditional risk and regulatory compliance to becoming a partner within the business, with greater influence over the company’s strategic direction.

More than 70 per cent of respondents said that their attention was split 70:30 between business and regulatory issues. Most have also increased their influence over or secured approval of key processes.

“In future, we expect insurance CROs to play an even greater role in business and strategic planning as they help prepare their businesses for the emerging risk landscape. This will involve creating heightened sensitivity to risk at the executive table and becoming more involved in strategy setting.