5 must reads for the weekend

We keep our ear to the ground for the interesting stats, insights and discussion points you need to feel in the know.?

1. Roll with the risks

Risk is always changing, but Chief Risk Officers (CROs) are stepping up their game to keep up. According to new EY research, CROs are leaning into scenario planning, with 58% using it to tackle climate risks. Meanwhile, AI is becoming their secret weapon, with 59% using it to fight operational fraud. With shifting priorities, 62% are tightening lending standards, and half are upgrading their tech to stay ahead. But it’s not just about the shiny new tools — CROs are on the lookout for talent that can think digitally and roll with the punches. By staying proactive and flexible, this is how banks can put themselves in prime position to handle whatever risks comes their way…?

Five ways banking CROs are increasing agility?

2. Not a cop out

At COP29 in November 2024, developed countries promised to give $300 billion a year to help emerging economies fight climate change, earning the event the nickname “the finance COP.” However, experts say this amount is still $2.3 to $2.5 trillion short of what’s needed. UN officials warn that if businesses and governments don’t take serious action, we could face major global problems. Dr. Matthew Bell from EY points out that climate change is already hurting local economies through extreme weather. Companies are starting to collaborate across industries to address climate challenges, and they need to get involved in shaping climate policies. With urgent action needed to cut emissions and limit global warming, those who adapt and innovate will be better positioned for success.?

An end to the “era of inadequacy” on climate action ?

3. New kid on the block

We’ve heard a lot about GenAI but now Agentic AI is taking center stage. This new technology is changing how businesses use data, creating exciting opportunities and enhancing partnerships like Managed Services. Agentic AI builds on GenAI by automating processes using enriched data context, but it requires careful planning and human oversight. Strong data foundations are essential for success, as high-quality, trustworthy data drives effective AI outcomes. Many businesses are turning to Managed Services providers for quick integration of Agentic AI and resource optimization. Here’s how organizations can boost efficiency and unlock value by embracing this new technology...?

Revolutionizing Managed Services: Combining the power of data, GenAI and Agentic AI ?

4. The insurance gold rush

The insurance industry is sitting on a goldmine of opportunities, thanks to massive coverage gaps just waiting to be addressed. Consider this: 99% of cyberattack losses and 60% of natural disaster damage remain uninsured. And the retirement savings gap? It's set to balloon from $106 trillion in 2022 to $483 trillion by 2025. The potential for growth is clear. Insurers can innovate by creating products that tackle these pressing needs, leveraging AI to personalize offerings, and expanding through smart partnerships. With evolving regulations and billions of underserved people around the world, there’s never been a better time to rethink strategies and unlock new value…?

How insurers can accelerate value creation from gaps to gains ?

5. Would you let your kids run your business?

That's been the secret to success for the Della Porta dynasty, where an entrepreneurial mindset runs in the family. With reinvention in their DNA, each generation had advanced the SAES legacy, helping the business expand over the past 60 years. While diversification has been a key growth tactic, becoming a leader?in areas like chemicals, industrial materials, and even clean beauty, SAES has not neglected its roots in vacuum cleaners. This one specific move helped their pumps revenues jump from US$5 million to US$20million...?

How an advanced materials player successfully enters new markets ?

If you do one thing:?

Pick up a new book.?

Don’t miss a must read, find all the issues of the weekly must reads newsletter by EY on LinkedIn here.?