A Fortune 50 financial services company was in need of improving the maturity and effectiveness of their operational risk reporting function. This case study shows the approach that Premier Alliance took.
MAJOR FINANCIAL SERVICES COMPANY USES NEW KRI’S TOIMPROVE OPERATIONAL RISK PROGRAM Situation A Fortune 50 financial services company was in need of improving the maturity and effectiveness of their operational risk reporting function. Specifically, improvements were needed to 1) ensure that the business units were getting relevant, usable risk information and 2) that the program would satisfy regulatory risk management requirements. 360° Thinking The team needed both strategic and tactical expertise to be successful. A full knowledge of regulatory and operational risk issues would be required to assess the needs and provide strategic direction. Tactically, a “roll-up-the sleeves” attitude and competency would have to be brought to bear to assist with the implementation. This delivery would have to include team members who could quickly understand business issues as well as the current internal and external operating environments in order to lead the client’s diverse teams. (Per the client’s request, organic resources were to be used as much as possible). Premier Alliance Delivery Premier Alliance used a proven Six-Sigma project methodology of Define, Measure, Analyze, Improve and Control (DMAIC) to provide a standard base from which to manage the project. After defining the core issues and assigning workstreams to address them, the team used a COSO-based framework to provide an industry standard control structure to all activities within the effort. After assessing current practices it became clear that the cornerstone of the project/program would involve the creation of revised key risk indicators (KRI’s), which would provide business leaders with risk information vs. data. Facilitated working sessions with the client’s risk managers used a mix of existing data along with new to provide more actionable indicators, while decreasing the amount of raw numbers being reported. These new KRIs along with other roadmap improvements paved the way for a more robust, forward- looking program and began the shift from a commoditized function to one of true risk analysis. Why Premier Alliance? Simply stated, Premier used seasoned industry experts to quickly assess and methodically implement a solution that met the client’s needs. This solution resonated with the client because it was based on real world, industry-standard experience. The small “footprint” of resources delivered was in line with the client’s expectations, and used organic resources in order to keep costs within their budget. This is the Premier difference: We deliver talent where it is needed to ensure success. Advisory | Consulting Services | Resources