Banks are using a shift in supervisory expectations to rethink risk management, with artificial intelligence at the center of that effort. At the same time, AI is amplifying risk to other areas, including cybersecurity and fraud. This according to the 2027 ProSight Risk Outlook Survey, conducted in collaboration with Oliver Wyman, a Marsh business.

Among the 160 banking leaders surveyed across risk and business lines, 78% agreed that regulatory requirements have become less prescriptive around how risk processes are performed, while most (87%) view this shift as an opportunity to optimize those processes.

Other Key Findings

  • The top risks are technology and crime-related. Technology and cyber risk lead concerns (64%), followed by fraud, financial crimes, and data.

  • Transformation mostly targets areas of top identified risks. Technology and cyber risk, operational resilience, and financial crime top the list of risk areas slated for transformation.

  • Credit risk management presents an opportunity for reinvention. Banks are investing in credit capabilities ahead of any significant deterioration, and 39% believe AI could transform credit risk within two to three years through more streamlined underwriting and continuous portfolio monitoring.

  • Transformation is about better, not cheaper, risk management. Banks are optimizing primarily to respond faster to risk events and improve risk management quality. Cost reduction ranked after these two priorities.

  • AI adoption in the risk function is well underway. 64% of institutions already use AI within risk, and another 26% are running pilot programs. Yet many describe their AI risk appetite, governance, and controls as only somewhat developed, and 65% expect regulatory pressure on AI practices to intensify in the coming year.

  • Data is the biggest barrier. 49% rank data quality and availability among their top three obstacles to deploying AI further.

“The shift in regulatory tenor has given risk leaders much more room to ask: ‘Is this the best way to do this work?’” said Jen Guidi, CEO of ProSight Financial Association. “What stands out is what they’re doing with the answer. While they’re using cost savings to re-invest in risk operations, they are sharply focused on doing better risk management and anticipating what’s on the horizon, from working to turn back a surge in fraud to the improvements in data quality that will be needed to optimize further advances in AI.”

AI is functioning as both a substantial threat and an opportunity in this space. It is amplifying cyber, fraud, and model risk while giving risk teams new ways to automate workflows, monitor exposures, and support decisions. “This year’s survey highlights how AI is simultaneously making risks more complex and giving banks powerful new tools to fundamentally reinvent how they manage risk,” said Michael Duane, partner in Oliver Wyman’s Finance and Risk Practice.

With more time from new workflows, risk leaders and their teams hope to deepen risk’s mandate as strategic partners and advisors. “Risk is no longer a function that reviews the business after the fact,” Guidi added. “As threats move faster and AI compresses decision cycles, the strongest institutions are building risk into how the business makes decisions in the first place. That is the real transformation underway.”

Access the full report here: Risk Outlook Survey

About the Survey

In August and September 2026, ProSight surveyed chief risk officers and other leaders at financial institutions primarily in the United States and Canada for its annual Risk Outlook Survey. This year’s survey was prepared in collaboration with Oliver Wyman.

The Risk Outlook Survey explores the top trends in bank risk management, the most urgent priorities of risk leaders, and how they plan to address them. For this year’s report, we received 160 survey responses.

About ProSight Financial Association

ProSight Financial Association empowers financial services leaders to act with confidence to strengthen and advance the industry. ProSight was formed through the merger of BAI and RMA, both trusted organizations with rich histories and deep expertise in risk, compliance, fraud, retail and commercial banking. ProSight supports leaders during times of great change, providing insights, tools, and analytics leading to new opportunities for growth. Our work creates positive ripple effects throughout organizations and the industry, ultimately helping consumers, businesses, and communities thrive. Learn more at prosightfa.org.

About Oliver Wyman

Oliver Wyman is a business of Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information, visit oliverwyman.com, or follow us on LinkedIn and X.

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