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Change Management, Compliance, Risk Management

2 minute read

Turn Risk Management into Your Greatest Competitive Advantage

May 28, 2021

Written by: Cara Williams

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.

Many leaders will claim they run a tight ship, confident their people dot all the i’s and cross all the t’s to reduce risk as they implement change after change without creating risk ripples. Does that sound like your bank? But do you know for certain?

By investing just five minutes of your time, you can get a sense for where your organization stands. Take our 11-question digital survey, “Risk Management Framework Maturity Assessment,” to see how your organization stacks up and get pointed in the best go-forward direction for driving and promoting an impactful risk-aware culture where everyone in your organization plays a role in managing, identifying and remediating risk.

Look Critically Inside Your Organization

Our self-guided assessment asks you to reflect on the current risk culture and risk landscape across your organization.

Because establishing a risk-aware culture begins at the top, we help you gauge your senior leaders’ and board members’ investment and attitudes. That starts with shouting from the rooftops and taking responsible actions that set the stage for everyone to play a role in supporting a tailored risk management framework for your bank. Your organization’s commitment further comes to life with comprehensive governance documents, oversight committees and clear delineation of roles and responsibilities across your three lines of defense.

Our questions also help you analyze the effectiveness of your operating structure. This entails instituting vetted processes for monitoring your daily work and identifying, escalating and remediating risks. Of course, the more upfront investment you make in building a scalable structure, the more nimbly, strategically and decisively you can act when change comes along, because you aren’t starting from scratch every single time.

Finally, your people confirm whether your organization truly embodies a risk-aware culture. They embrace and adhere to managing risks associated with and generated within their piece of the enterprise. Empowered by a shared risk language and approach, they have true ownership for making risk management a strength for the organization and are enabled with information for risk-based decision-making.

You need a solid, adaptable framework, which is important to know as your bank gears up to launch new products to generate revenue in a low-rate environment and braces for the next wave of regulatory oversight. If you find yourself perhaps comfortable with your responses in one area but not the others, you probably won’t be surprised to learn that your bank has opportunities to enhance elements of its framework in an effort to drive a more risk-aware . And once we understand your current state, we’ll tee up some proven practices that can help you elevate your risk framework profile.

Does Your Risk Framework Work for You?

Keep in mind that this is an ongoing process, and you need to routinely revisit and refresh your approach to be ready for effective change. A robust risk management framework must be dynamic, as you welcome new employees and say goodbye to others with tribal knowledge, identify compliance gaps and update your risk appetite according to market conditions that surround you. Complete the assessment now, and we’ll provide you with a summary of where you stand in your journey – and the steps to advance from where you are right now.