March 20178 R eaders of this publication will readily appreciate the benefits and opportunities which technological innovation has delivered to society over the course of your careers. My grandmother learned to cook for her brothers and sisters over an open campfire on her family's farm, and by the time she died she had mastered the art of microwave meals. But in all the technological advances she witnessed and experienced in her lifetime ­ one thing remained constant. With all the benefits of emerging technologies and consumerism, she still had to manage risks­some of them simple and foreseeable, others which were far beyond her control or imagination.For those of us in the financial services sector, risk management is the oxygen in our blood. Without risk-taking there is no return, and without return, there is no capital flow to businesses and the broader economy will falter. Yet, over my time working in financial markets, we have seen some examples of the worst form of risk-taking: naked, ruthless, brutal, careless and ignorant behaviour which has infected the financial health of individuals, families, companies, and communities. A common response has been to impose more and more compliance obligations to manage political, populist, and community expectations that "something must be done"! And boards are playing an increasingly forensic role in seeking assurance from management that mistakes must be avoided and failures should be punished.Have we now reached a point where the addition of ever more demanding obligations to catch those who would do harm, risks curtailing legitimate commercial enterprise, including (good) risk taking? Can we ever create a society in which no harm will be done, no loss suffered and no failure occurs? Is perfect the new normal? And what particular impacts will this have in the technology sector?Fintech is leading the latest wave of innovation and creativity in the way in which traditional financial products and services are developed and delivered. Fintech is also creating new channels to meet consumers' needs more efficiently and cost-effectively. As with each wave of societal advance, this creates both opportunities and risks.1. Fintech arguably cuts out the middle layer of intermediaries and enables consumers to access products and services directly from a range of manufacturers. Data analytics assists both product developers and consumers to better understand needs and risk appetite, ideally leading to better tailored outcomes. More IN MY VIEWBy Sean Hughes, Chief Risk and Legal Officer, UniSuperTaking Risk ...Well
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