2025 is here, and the priorities for risk are clearer than ever. As economic pressures, regulatory demands, and technological advancements intensify, clients are sharpening their focus on strategies that deliver measurable outcomes.
We’ve spoken to our Risk consultants to understand where organisations are doubling-down this year and what it means for staying competitive.
Doubling-down on AI: From tools to solutions
As generative AI tools like ChatGPT, Google Gemini, and Copilot become more widely adopted, organisations are refining their policies to ensure safe and effective use.
Ian May, Delivery Director at Jaywing, predicts a rise in clients seeking advice on best practices for implementing generative AI:
"I think we're likely to see more clients asking for advice on best practice Gen AI implementations as they refine and evolve their policies towards employee use."
This aligns with findings from our recent research report, which highlights that 65% of organisations have already implemented AI solutions. We’ve seen many clients gain measurable benefits such as improved risk performance and operational efficiency. Here are some examples: Nationwide, Newcastle Building Society, Secure Trust Bank.
Governance: Encouraging bold approaches
With regulatory bodies sharpening their focus on promoting growth and competitiveness, clients are increasingly open to exploring new and innovative solutions.
Steven Finlay, AI and Modelling Consultant at Jaywing, believes this regulatory shift could inspire businesses to take bolder steps:
"I think we'll see regulators finally getting their act together on their secondary objective of 'promoting growth and competitiveness,' and we will be able to leverage that to encourage clients to take more of a plunge with new and novel approaches."
For organisations, this means 2025 is an opportunity to think beyond traditional methods, adopting solutions that not only meet compliance requirements but also drive efficiency and competitive advantage.
Regulatory compliance: Staying ahead of the curve
Regulatory demands remain a key focus for businesses, with updates to IRB solutions and Basel 3 compliance continuing to shape priorities.
Paul Monaghan, Regulatory Compliance Specialist at Jaywing, highlights the ongoing evolution in this space:
"I think clients will continue to upgrade already submitted IRB solutions as PRA provide feedback and actions. Clients will continue to work towards Basel 3 compliance."
He also anticipates adjustments in IFRS 9 models as businesses adapt to unexpected trends in default rates:
"In IFRS 9 and forecasting, I would expect many clients to override or adjust their Economic Response Models if the default rates implied by the higher base rate environment do not materialise. It will be interesting to see if models return to performance if, as currently expected, the base rate falls."
For organisations, staying ahead in 2025 means refining models, anticipating regulatory feedback, and preparing for economic shifts that could impact forecasting accuracy.
Fraud prevention: Tackling financial crime head-on
As financial crime becomes more sophisticated, businesses are weighing in on fraud prevention. Transaction monitoring, particularly for identifying fraud rings and money mules, is expected to be a major area of interest in 2025.
Ben Archer, Fraud Prevention Lead at Jaywing, sees a growing demand for solutions that address these challenges:
"I think we'll see an increase in queries around financial crime, transactional monitoring for fraud rings, and money mules."
This trend highlights the need for proactive measures that go beyond traditional fraud detection. By strengthening fraud prevention strategies, organisations can protect their operations, meet regulatory expectations, and safeguard customer trust.
From focus to action: Preparing for 2025
Across AI, governance, compliance, and fraud prevention, one thing is clear: clients are not just identifying priorities—they’re acting on them. By doubling down on strategies that address both immediate challenges and long-term goals, businesses are positioning themselves to thrive in an ever-changing risk landscape.
Whether it’s refining AI implementations, tackling financial crime, or staying ahead of regulatory changes, 2025 is a year for bold steps and smarter strategies. And our consultants are here to help. Get in touch.
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