Operational risk and risk management across multi-jurisdictions for international banking group
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Transcript of Operational risk and risk management across multi-jurisdictions for international banking group
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Roll-Out of a Risk Framework Across a Banking Group
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The Framework fundamentals were sound and
universally acceptable but a solid understandingof the differences between the banking and the
insurance world was required and demanded an
open and honest dialogue with the various heads
of department.
A plan was formulated to deal with each part
of the framework and priorities were made
using customer importance as the main
criterion and ensuring that processes
were accurately recorded and thecontrols were adequately described
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During the initial process identification and
evaluation, important lessons were learned
regarding common processes that cut across all
departments, and the time saving that could be
obtained by linking the sub-processes on a
platform for unique and discrete functionality.
IT was obviously linked to every process fromcash deposits and withdrawals, investments
received and loan applications and draws.
IT was split into facilitation and a
support function so that additionaldiscernment could be made across
specific functions.
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As nobody was likely to understand the processesand controls like the process owners, they were
tasked with the mapping of the processes at ahigh level with all potential risk areas anappropriate controls at the required junctures.
A peer test would be conducted with the 2ndincommand and a quality assurance functionsupplied by us.
Fully documented details of the processesand a full evaluation of the controlsdesign and functionality with the
relevant COSO apportioned categorywas then uploaded to the centralrepository for reference.
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When all processes were identified with unique
references, a quarterly process owner sign-off
and 6 monthly full review was scheduled for each
department. Changes were coordinated and
phased to provide no loss of material
functionality to customers.
Senior management reviewed and approvedany changes recommended and reported
through the risk committee.
Global HQ were in overall command
of all data and version controlmanagement with trained local
support and liaison.
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The entire process then had to be interpreted andadapted to the European Head Office, the Isle of
Man International Operation and a final reviewand interpretation of the fiduciary function in theChannel Islands.
The commonality of the processes in the mainbanking arena had provided timesaving andcommonality that was applied across theother three areas.
The entire process was started at the beginningof September and scheduled for 6
months and the final documentedprocess was received before NewYears Evetwo months early!
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You are always dealing with the principalwhenyou are dealing with my firm. This means that I am the
relationship manager and there is no junior partner towhom responsibility will be transferred. There is nodecreased accountability, no "hand-off" to a less-informed colleague. If your interests are at stakecontinually, shouldnt you reasonably expect my
continual involvement? We can usually provide resources on a "just in
time"basis. That is, our projects do not have to coverexcessive overhead, such as multiple offices, largeadministrative backup, recruiting, partner perks, etc.
We are organized to efficiently provide everything thatyou, as the buyer needs, but nothing more than thatwhich means that you are paying for value and resultsand only minimum overhead.
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There is more likelihood of your privacy
and confidentialitybeing observed withfewer people working on the project.We(and/or the few people we might also involve)are constant which means that there isnt the
need to sift through dozens of differing
perceptions. Were faster. We can respond to requests
quickly, and return all calls within four hourswhich means to you that there is no need to
worry about a bureaucracy, delays andunknown people on the other end of thephone
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Since we handle fewer concurrent projects thanlarger firms, our attention is focused on the job at
hand. This means that you dont have to"compete" with another dozen or so of ourclients, which may be larger, paying more or aremore time-demanding. We structure our work sothat every client receives maximum
attention. Your investment is controlled. There is no
"meter running".We work for a fixed, value-based, project fee. Large firms cant afford to dothat as readily because of all the people involved
and their own insistence on measuring theirsuccess by billable hours. We measure our successby client objectives reached, not in time units.
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The expertise that larger firms use is often white-labelling for them by a pool of consultants
available in the marketplace at any one time.Weselect our consultants frompractisingsubject matter expertswhich means thatyou obtain the same or better expertise for less
money, because;
Inevitably, we are less expensive. Thereare economies to using someone who can basetheir fees on each situation and not on a pre-
determined service scale or need for reaching apractice quota. This means quite simply bettervalue to you.
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We will conduct an initial appraisal at our costonly charging for expenses(UK Only)
We will make a proposal based on our
appraisal with your outcomes and needs
We will discuss the precise scope with you
and provide you with a project price
We will complete the work to your original
scope and satisfaction
Phase 1
Phase 2
Phase 3
Click Mouse Reveal Next Phase
Phase 4
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We have a wealth of Financial Services Experience, and due to
the remedial nature of our work forming over 60% of our
business and that is conducted under a Non Disclosure Regime,
we cannot demonstrate every client.
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We can provide all manner of assistance in;
Technical supportmay include advice on particularproducts or regulatory reporting. May be available invarious formats, including website, helpdesk and individualtechnical advice.
Trainingfor example competency assessments, trainingopportunities or product risk guidance. May be online
support, regulatory updates or seminar based. Support on individual issuesfor example in dealing with
a complaint, a financial promotion or a particular suitabilityletter.
Financial promotions(all areas of advertisement) - fullsupport which would include websites, brochures, DVD's,
email templates, client mail shots, adverts, contactingexisting clients and so on.
Remedial workhelping to action remedial workrequired by the FCA/PRA.
And much more just ask!
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Compliance Consultant
www.compliance consultant.org
Tel 07801 864980 (UK)
Tel (+44) 7092 289901 (Int)
We operate across the UK, Europe
and the Middle East.
Currently exploring opportunities in
Latin America