Most banks recognize that innovation, particularly technological advances and the new business strategies they enable, is critical to their ongoing success. The challenge is how to build a risk-tolerant culture that encourages and even enables innovation without compromising the necessary risk management capabilities of a sound financial services organization.
Need for innovation
The ability to embrace uncertainty and to recognize and respond nimbly to change is critical to any business. History offers numerous examples of companies that have failed to recognize the importance and urgency of innovation, particularly in the past few decades when technology has enabled game-changing, new business approaches.