Risk

Financial institutions can leverage machine learning to make an array of functions faster, more accurate and more efficient. But deployment is just the first step. In the end, machine learning governance makes or breaks the efficacy of any system. In today’s banking and financial services world, we are rebuilding many finance, risk, actuary, forecasting and macroeconomic models using Python, R...

CDD and KYC have been baked into AML compliance for two decades now, yet enforcement of money-laundering violations continues to accelerate. How is it that penalties from a highly regulated environment are not able to serve as a bulwark against the corporate (and human) appetite for profit? Know Your Customer … But to Thine Own Self Be True Almost every...

Thomson Reuters has released its 2021 Report on the Cost of Compliance, finding that radical change may well emerge from post-pandemic reviews of and by financial regulators. With some financial services firms changing strategic direction, the report highlights a need to support wider cultural, operational and staffing requirements through future investment and resources. While the pandemic presented many challenges, it...

Recent events put market controls imposed following the Great Recession to the test. While turbulence from COVID-19 was brought under control, other happenings have thrown their efficacy into question.

Financial institutions and their directors have to navigate a rapidly changing world marked by new and emerging risks driven by cyber exposures based on the sector’s reliance on technology, a growing burden of compliance, and the turbulence of COVID-19, according to a new report, "Financial Services Risk Trends: An Insurer’s Perspective," from Allianz Global Corporate & Specialty (AGCS). At the same...

Imagine if there were an annual award show for risk. Of course, due to the pandemic, the award show would have to be virtual – but if there were such a show, the pinnacle award would be for the Most Disastrous Risk of the Year. Hands down, the award for 2020 would go to location risk. In case you aren’t...

As the global economy remains in flux, most risk management strategies remain backward-looking. Risk needs to adopt strategic resilience strategies if it is to stay abreast of the inevitable changes to come. Winston Churchill’s observation, “However beautiful the strategy, you should occasionally look at the results,” takes on fresh meaning when nearly seven of 10 directors believe they need to...

In-house counsel and compliance both assess risk. As such, they often vie with one another. A collaboration, however, can serve to raise both up and significantly enhance a company's risk assessment overall. Lawyers get a bad rap – not just as the subject of lawyer jokes.  (This is not an invitation to recite lawyer jokes).  I recently wrote about the...

Chief Compliance Officers can add value to their organizations in many ways -- but are they at liberty to do so? Michael Volkov suggests it's time to give these multi-talented professionals more room to roam. Chief compliance officers are talented professionals. As Donna Boehme always emphasizes, CCOs are subject matter experts in compliance risks, controls and mitigation. They focus on...

Five of the top 10 risks identified as "high impact" are operational in nature, while the rest are macroeconomic and strategic. What do they all point to? A decade of disruption, says Protiviti's Jim DeLoach. He shares the Top 10 list revealed by a recent Protiviti and NC State University study and offers words of wisdom to guide your long-term planning. Overall,...

A recent survey conducted by Protiviti and NC State University’s ERM Initiative discloses the influence of the COVID-19 pandemic, the economy, digital technology, talent and organizational resiliency on the risk landscape over the near term. Protiviti’s Jim DeLoach outlines the most significant risks organizations are facing. Overall, 1,081 C-level executives and directors participated in this year’s global study, with 39...

Many professionals outside of compliance teams are not fluent in the language of risk. That may be hurting the impact of your risk assessment – or even the greater well-being of your business. GRC professionals believe risk and compliance should be an executive priority as they can drive revenue and inform business decision-making. But they can lose their payoff if...