Risk Management & Regulatory Compliance, Capability Delivery, Governance & Policy
2 minute read
May 26, 2022
Written by: Laurent Robert
The heart of an organization is within the policies that declare what it is and what it believes. To many people, those policies are about setting limits, which automatically means minimizing risk because there’s not much room to step out of line.
I’m not one of those people.
I look at developing policy documents that allow a bank to confidently seize opportunities. When you have effective guardrails in place, coupled with a well-managed and risk-aware culture, your bank can optimize the risk it takes for the best benefit.
In a recently published article in the Journal of Financial Compliance (Vol. 5, No. 3), I discuss how these living policy documents can become a foundational advantage for your bank.
Consider that during more than two years of pandemic conditions, banks faced significant pressures on their conventional policies in tandem with both consumer and commercial customers’ facing financial burdens. On top of that came the rise of the social justice movement, demonstrating that another unprecedented risk event is just around the corner.
These policy documents make you ready for those moments by serving as the core of an effective risk management framework:
In the article “Developing living policy documents that optimize risk taking,” I also delve into pitfalls that might trip you up in writing policy documents, starting with failing to clearly define the activity and its main drivers. Ultimately, these documents are only as effective as the level of investment and attention that your organization gives them.
Spinnaker also published “Assessing and managing UDAAP risk in the new regulatory environment” in the same issue of the Journal of Financial Compliance. Our article explores the challenges that banks will face as the Consumer Financial Protection Bureau increases its attention on compliance with unfair, deceptive or abusive acts or practices (UDAAP). This has long been a subjective assessment, but the CFPB ultimately holds the discretionary power. Again, on top of the global pandemic and social justice, we look at issues of consumer equity and fairness and recommend best practices for banks to better manage UDAAP risk.
Our Spinnaker team brings front-line experience and leadership in risk across financial services, allowing us to apply our expertise in tailored ways to better position you for a rapidly evolving regulatory environment. Check out our thought leadership on two critical industry topics and reach out to learn how we can help you implement the best practices to turn risk management and compliance into your market advantage.
Change is about the only constant in banking today. Inside the organization, you’re processing a steady stream of requests for new products or customer services. Coming from the outside are regulatory updates and unpredicted pressures, such as the COVID-19 pandemic.
Risk Management & Regulatory Compliance, Program Build Out, Change Management, Risk Management 2 minute read
In today’s hypercompetitive environment, every bank needs strong guardrails aimed at keeping every process well managed – and operating within the organization’s risk tolerance. At the same time, a never-slowing pace of change creates challenges on everything from internal pressures for fresh customer products to external demands from the latest banking regulations.
Change Management, Compliance, Risk Management 2 minute read
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