Banking – effective risk management, risk appetite frameworks and sound risk culture

Robust risk management and risk appetite frameworks ensure the board and management run the firm prudently, allow operations to continue with adequate resilience and increases the capacity to detect new opportunities when they arise. A sound risk culture is essential in order to integrate the risk management framework across the organisation ensuring employees’ behaviour is aligned with the firm’s objectives, policies and organisational arrangements.

Regulators are expecting firms to have an effective risk management framework supported by a sound risk culture. Banks should go beyond the box ticking exercise and focus on the positive externalities that the process generates.

Our experienced team can support you in assessing your current situation through tailored surveys, performing a gap analysis, defining a roadmap to fill the gaps identified followed by implementation.

Our team can advise and support you in the following areas:

• Defining and implementing an effective risk management and risk appetite framework
• Drafting and reviewing risk policies and procedures as well as the risk appetite statement
• Developing a comprehensive risk register, risk dashboard and internal reporting
• Developing and communicating a sound risk culture within the firm
• Aligning compensation/incentives schemes with the firm’s risk appetite and risk culture
• Organising surveys, seminars, workshops and training at all levels within the firm

For more information about our capabilities please contact us.