Financial firms and banks are utilizing advanced risk management solutions for better data management and capturing. To achieve risk management compliance it is necessary to regularly refresh the technologies to keep up with the increasing number of data sources and to maintain better end-to-end surveillance. Have a look at this presentation and visit our website for more information. Visit: https://bit.ly/3Q1LHIe

1. THE 1
ST LINE RISK
MANAGEMENT
Risk management compliance
LessOns Learned frOm the 1st Line Risk
& COntrOl PrOfessionals Deep Dive

2. INTRODUCTION
Intelligence fOr Risk & COntrOl
PrOfessionals (1LOD)m and Our goOd
friends hOsted an event earlier this year tO
share observations specific tO the 1st line of
defense. Here are my key findings frOm
the event and the repOrt that fOllOwed.

3. RISK MANAGEMENT
STRATEGIES
Risk management is a vital strategy fOr every
Organization and shOuld be regarded as an
equal partner fOr all prOactive aspects Of the
business.
MOst regulatOrs and banks are already taking a
prOactive stance surrOunding the assessment Of
risk and creating mitigation strategies in
respOnse tO the pOtential implications Of a
breach.

4. KEY
TAKEAWAYS
Operational Risk Management
The first line of defense is mOre than an
admin and evidencing function – it’s a
critical cOmpOnent Of Operational risk
management
Needs to be overhauled
Nearly half (47%) Of bankers surveyed feel
the 1st line needs tO be overhauled tO be
inclusive of assessing non-financial risk
3-lines model
Organizational challenges and inadequate
bank cOllabOration reduce the
effectiveness Of the 3-lines mOdel

5. OVERHAULING THE
RCSA
Attendees pOinted Out numerOus shOrtfalls in the current instance of
the RCSA. TOO many risks were not recOrded, and a full revision was
suggested by many. It’s a delicate subject given that “things have been
dOne this way fOr sO lOng.” Change is hard fOr mOst Organizations.
But not everyOne suppOrts the mOve away frOm an episOdic risk
evaluation tOward a cOmbination of annual, daily, hOurly, and On-
demand assessments Of risk and cOntrOl effectiveness.

6. THE
TECHNOLOGY
GAP
smarter risk management solution
Less than half Of the attendees believed there
tO be any autOmation in their cOntrOls. A
desire fOr better data analytics and enhanced
data quality were cOmmOn themes.
One cOncept that emerged frOm the discussion is
a shared need tO have sOme language or
dOcumentation as justification fOr the
investments in technolOgy. Requesting a budget
fOr new tech is Only One side of the equation
The sheer vOlume and level Of “noise,” particularly
fOr messy, rich data like e-COmmunications, is
exacerbating the challenges Of implementing a
smarter risk management sOlution.

7. CONCLUSION
MOre W Ork tO Be DOne
Fundamentally, things need tO change acrOss the industry. When it cOmes tO
develOping and applying a structured apprOach tO 1st line effOrts, 25% Of financial
firms still have this in prOgress, Over half Of firms surveyed Only have a
partial/incOmplete assessment Of the need, and 60% Of firms admit tO being unable tO
sOlve 1st line prOblems due tO a lack Of clearly defined risk and cOntrOl
respOnsibilities.

8. CONTAC
T US
We lOOk fOrward tO wOrk with
yOu
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