Navigating the Dynamic Terrain of Modern Banking

In an interview with Insurance Business Review APAC, Henky Sulistyo, Risk Management Director/Chief Risk Officer, at CIMB Niaga, explores the role of risk management in enhancing the agility and responsiveness of banking within the fast-paced market. Sulistyo embarked on his banking career in 1998 at American Express. Over the course of 11 years, he ascended through the ranks, ultimately assuming the role of regional risk manager. Subsequently, Henky broadened his professional horizons by engaging with various banks, including DBS.

At DBS, he navigated through roles at the head office, subsidiary, and country levels, overseeing both core and non-core branches located at Tokyo, Dubai, the US, LA, and London. Post his tenure at DBS, Henky extended his expertise to three other prominent Asian banks— Maybank, UOB, and CIMB Niaga.

Currently, Henky Sulistyo holds the esteemed position of CRO at CIMB Niaga, contributing his wealth of experience and knowledge to the organization's strategic risk management initiatives.

Today he discusses key challenges in modern banking, highlighting the demands of 24/7 service provision, the evolving nature of cyber threats, and the complexities of human capital risk.

Safeguarding Operations, Cyber Frontiers, and Human Capital

As Chief Risk Officer, my primary focus is on three key challenges that keep me engaged. First and foremost is the challenge of operational and technology resiliency. The shift from traditional banking hours to a 24/7, 365-day service model has been a significant change. This shift is particularly relevant in my current position at one of the top banks in Indonesia, where we operate in 99 cities with 411 branches, including digital lounges, 4000 ATMs, and nearly a thousand staff. The expectation to provide uninterrupted service across various segments, from large corporate clients to individual consumers, poses a constant challenge.

The second major challenge is the evolving landscape of cyber threats. Over the last five to eight years, cyber threats have transitioned from being "known unknowns" to a recognized and ongoing risk. The emphasis is now on effective response and recovery, alongside identification, protection, and detection. We have implemented best practices, tools, and frameworks to address cyber threats and are conducting drills to simulate responses to potential cyber-attacks.

The third focus revolves around people, human capital risk, and risk culture. Talent competition in the banking industry, coupled with advancements in technology created challenges in acquiring and retaining skilled individuals. This is crucial, especially as we expand into non-core operations or remote branches where maintaining a strong risk culture becomes even more critical.

Navigating the Complexities of Modern Banking

For an entrepreneur or investor looking to establish a new bank, especially in a country like Indonesia with a large population and many remote areas, my advice is that in this competitive industry, size and skills matter. Given the challenges in talent acquisition, smaller banks may face difficulties attracting skilled individuals, and to overcome this, they may need to offer competitive compensation to secure the necessary talent. Unfortunately, this can pose a significant challenge for newer or smaller players.

For a fresh graduate or a new employee entering the banking industry, my advice is to stay open-minded and positive. The banking landscape is continually evolving, especially with technological advancements. Embracing change and maintaining a positive outlook is crucial. While the industry is dynamic and challenging from a risk perspective, banking today is far from boring, offering exciting opportunities for those willing to adapt.

My journey from American Express to the prestigious position of CRO at CIMB Niaga serves as a testament to the transformative power of adaptability and resilience. As the banking industry continues to evolve, these lessons in risk management, technological acumen, and fostering a robust risk culture become guiding principles for success. In today’s banking landscape, where challenges are opportunities in disguise, embracing change can be the cornerstone of a thriving career in modern banking.