Risk priorities for 2025: What firms are focusing on

As we step into 2025, organisations are refining their risk strategies in response to evolving economic pressures, regulatory expectations, and technological advancements. To understand where companies are focusing their efforts, we spoke to our Risk consultants about the key trends shaping the year ahead. Here's what we found:

#1. AI adoption: Moving beyond experimentation

With tools like ChatGPT, Google Gemini, and Copilot becoming mainstream, organisations are fine-tuning their AI policies to ensure safe and effective deployment. The shift is moving from AI experimentation to strategic implementation.

Ian May, Delivery Director at Jaywing, anticipates that businesses will increasingly seek expert guidance on best practices:

"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 trend aligns with findings from our latest research, which shows that 65% of businesses have already integrated AI into their operations. Many have reported tangible benefits, such as enhanced risk performance and operational efficiency.

#2. Governance: A more ambitious approach

With regulatory bodies sharpening their focus on promoting growth and competitiveness, businesses are becoming more open to exploring new and innovative risk solutions.

Steven Finlay, AI and Modelling Consultant at Jaywing, believes this shift will encourage bolder decision-making:

"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 businesses, this represents an opportunity to think beyond conventional compliance strategies and embrace solutions that enhance both regulatory adherence and operational efficiency.

#3. Regulatory compliance: Keeping pace with change

Compliance remains a key priority, with ongoing updates to IRB solutions and Basel 3 shaping risk management strategies.

Paul Monaghan, Regulatory Compliance Specialist at Jaywing, highlights the continued evolution in this space:

"I think clients will continue to upgrade already submitted IRB solutions as the PRA provide feedback and actions. Clients will continue to work towards Basel 3 compliance."

He also foresees adjustments to IFRS 9 models as businesses respond to shifts in default rate expectations:

"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."

Staying ahead in 2025 will require organisations to continuously refine models, anticipate regulatory feedback, and remain agile in response to economic fluctuations.

#4. Fraud prevention: Strengthening defences against financial crime

With financial crime evolving in complexity, fraud prevention remains high on the agenda. Businesses are particularly focused on enhancing transaction monitoring to detect fraud rings and money mule activity.

Ben Archer, Fraud Prevention Lead at Jaywing, predicts a rise in interest around tackling these threats:

"I think we'll see an increase in queries around financial crime, transactional monitoring for fraud rings, and money mules."

This highlights the growing need for proactive fraud detection strategies that go beyond traditional approaches, ensuring businesses can safeguard operations, meet regulatory expectations, and maintain customer trust.

Preparing for the year ahead

Across AI, governance, compliance, and fraud prevention, businesses are moving beyond identifying key priorities—they’re executing on them. In 2025, organisations are taking a more strategic approach, ensuring their risk management efforts address both immediate challenges and long-term objectives.

Whether it’s refining AI usage, enhancing fraud prevention, or staying ahead of regulatory developments, the focus is on smarter, more proactive risk management.