On May 23, 2024, leaders from across the financial sector gathered in Toronto for GRI’s latest Women in Risk Management event, focusing on Balancing Risk and Innovation in the Digital Age. GRI’s Vanda Vicars set the context for the day’s discussions, talking about the importance of events like these in creating a community of women risk leaders, and introducing the challenge of taking advantage of technological advancements while managing the inherent risks.

A panel discussion followed on the evolution of currency and digital banking. The panelists emphasized how blockchain has revolutionized currency by enabling decentralized transactions, with Bitcoin as a primary example. The discussion explored the concept of distributed ledgers, the challenges and benefits of cryptocurrencies, and the energy consumption associated with cryptocurrency mining. The panel also discussed current trends in the private sector, including the role of stablecoins and the increasing importance of open banking, which promotes data sharing and collaboration within the financial sector.

The panel elaborated on CBDCs, discussing their potential to address issues like financial inclusion and efficient cross-border payments. CBDCs address a number of shortcomings associated with cryptocurrencies, namely their volatility and limited practical use due to their instability as a medium of exchange. The panel also touched on the regulatory challenges and the potential necessity for a public sector alternative to private sector digital currencies to ensure stability and trust.

Claudette McGowan’s keynote addressed digital trends, risks, and opportunities in the financial sector. She emphasized the rapid technological advancements and their impact on financial services, including the rise of AI, quantum computing, and biosensing technologies. Claudette discussed the importance of cybersecurity, risk management, and the need for financial institutions to adapt to these innovations to stay competitive and secure. She also highlighted the geopolitical shifts influencing the financial landscape, such as the growing influence of BRIC countries and the decline In G7 dominance, stressing the need for strategic adaptation to these global changes.