Risk Management | Global Bank
A leading banking institution engaged our services to enhance their risk management and compliance frameworks. This initiative was driven by internal assessments and regulatory requirements to ensure robust governance and operational integrity.
Who is the client?
The client is a prominent provider of banking services, offering a variety of products including consumer and business loans and specialised financial solutions to a global customer base.
The problem
The primary challenge involved conducting a comprehensive review and enhancement of the organisation's risk management and compliance frameworks. Specific areas of focus included the risk appetite statement, risk register, governance structures and compliance with regulatory requirements. This was necessary due to identified gaps in existing processes that could impact the institution's operational efficiency and regulatory compliance.
The backstory
The review was initiated following internal evaluations that highlighted potential weaknesses in the risk management framework and compliance processes. A thorough assessment was conducted and we provided recommendations to align the organisation's operations with best practices and regulatory expectations.
The Edmund Group Solution
Following a detailed assessment, a comprehensive plan was developed to address the identified issues. The plan included the following strategic enhancements:
Strengthened the existing risk management framework by enhancing the risk taxonomy, risk appetite statement and key risk indicators (KRIs). This included defining clearer criteria for risk assessment and improving the documentation and monitoring processes;
Improved governance frameworks to ensure robust oversight and active engagement from senior management. This included updating the terms of reference for the executive risk committee and board risk committee to clarify roles and responsibilities;
Enhanced compliance processes by developing a detailed compliance manual and ensuring alignment with regulatory requirements. This included improving the Money Laundering Reporting Officer (MLRO/SMF17) annual report to accurately reflect anti-money laundering (AML) controls and compliance measures;
Established a documented policy and procedures for incident management, including identification, escalation and reporting of incidents. This ensured a timely and effective response to operational and compliance issues; and
Implemented targeted training programs to enhance staff understanding and management of risk and compliance requirements. This fostered a risk-aware culture throughout the organisation.
The outcome
Strengthened risk identification, assessment and monitoring processes, resulting in alignment with the institution's risk appetite and strategic goals;
Improved governance structures to facilitate better oversight and decision-making, ensuring that risks are managed effectively;
Enhanced compliance processes ensured ongoing adherence to regulatory requirements, reducing the risk of regulatory penalties; and
Optimised incident management and risk control processes, contributing to increased operational efficiency and resilience.
