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Increase Risk Management effectiveness by learning to deal with two organisational realities

Experimenting with Networked Risk Management[1] over a period of five years has shown that the ability to deal with multiple organisational realities can help to improve risk management. In some case it can also reduce the effort to do so, making valuable and usually scarce resource available to contribute to an organisations success. One of our observations is that using only a traditional view based on

It’s been a rough two years for Wells Fargo.

Ever since the existence of the bank’s massive cross-selling scandal came to light in 2016, Wells Fargo seemed to be trapped in a downward spiral of failure after failure in risk management. In 2016, we were the first to identify the root-cause of the cross-selling scandal as being a failed risk management program, and correctly predicted there would be more Wells Fargo risk management mishaps in the future.

In 2018, regulator investigations finally con

Compliance management has always been a complicated task, but technology has helped make it easier. We are finally seeing the rise of Fintech (financial technology) and Regtech (Regulatory technology). These technologies are designed specifically for the financial industry and for dealing with regulations respectively. Compliance management comes under Fintech and is quickly becoming an essential technology for companies that want to innovate and succeed in today’s harsh and dynamic business env

In recent blogs I have been urging you to stand in the shoes of those you wish to influence. Recently I read a blog by futurist Gihan Perera that gave another reason to urge you on. In his blog There’s an ‘I’ in Team he reminds us that the young new entrants to our workforce have a very different WIIFM (What’s in it for me?) than new entrants of past decades. Gihan talks about their wishes including the need for identity and personal development. 

So they won’t care what you think unless you can

Your stand-alone third-party risk management platform delivers significant value by centralizing risk-related processes, standardizing workflows, and capturing key documentation for due diligence and regulatory compliance. 

But your third-party relationships don’t exist in a vacuum. By integrating your platform with other systems, you can augment your risk management process with richer data and extend its reach across your business — without increasing your workload.

Read Automated Integrations f

Michigan State University has employed a new Chief Compliance Officer in response to the Larry Nassar scandal. By creating an Office of Enterprise Risk Management within the university, MSU is getting on the right track.

Earlier this year, former MSU doctor and USA gymnastics coach Larry Nassar was charged with sexually assaulting 332 students. Shortly after this story broke, Michigan State was embroiled in two other sexual harassments scandals and has since struggled to escape the spotlight.

MSU’

Back in March, President Trump’s administration threatened to impose steep tariffs on imported goods from some of America’s biggest trading partners. In the following months, the administration set a 25% import tax on steel and 10% on aluminum. Just as I predicted, these decisions are impacting the supply chains of American businesses, forcing them to consider the effects this kind of tumult could have on their business.

In my first blog post on the subject, I detailed a few direct and indirect c

Many FIs are looking to SMB lending as a source of growth, but at the same time mindful of credit risk that can increase if the loans are made with hasty underwriting. Sageworks, a financial information company that offers portfolio risk software, was just awarded the Innovation Award for Business Lending due to the company's headway into automating SMB lending processes while offering to benchmark, global cash flow analysis and other functionalities that allow FIs to quickly and accurately meas

What’s worse than a vendor that suffers a data breach that exposes your sensitive customer information? The answer: A vendor that waits almost six months to tell you about it.

That’s the issue that both Sears and Delta Air Lines are facing after a malware attack on each of the company’s online chat services vendors. Hundreds of thousands of customers’ payment information was accessed, including payment card account numbers, expiration dates, names, and addresses, reports Gizmodo. Sears and Delta

Don’t assume you’re immune from this European regulation with huge fines

All may be relatively quiet on the regulatory front in the U.S., but this May new privacy regulations are taking effect in the European Union, which will likely impact even the most provincial U.S. financial institutions.

The E.U.’s General Data Protection Regulation (GDPR), approved in April 2016, is much broader than the U.S.’s most well-known privacy regulations, the Gramm-Leach-Bliley Act (GLBA) and the Health Insurance P

Year over year, scandals like Wells Fargo, Equifax, Chipotle and so many others have dominated news headlines as they wreak havoc on consumers, investors, and awaken industry and government regulators. What is driving this trend?

Consumers have entrusted corporations with increasing involvement and influence in their lives through the decades. In 2014, for example, the Supreme Court ruled that corporations have some of the rights and responsibilities as natural persons. In other words, corporatio

When risk increases, the natural response is to take action to reduce that risk. But not every increase requires action. In fact, it may distract you from more important issues.

I’m talking about the risk of treating every risk the same.

Astute observers of risk have a variety of tools to monitor risk, from near real-time indicators to audits, exams, and reviews. But it’s not enough to recognize that risk has increased. Its ultimate impact must be considered.

For example, a review might show that e

With the General Data Protection Regulation, the EU is taking privacy very seriously. They expect the same from you – and your third parties. How are you preparing your Vendor Risk Management program to handle these sweeping changes?

Join ProcessUnity for a 45-minute webcast on Wednesday, April 18, 2018 at 11:00 AM EDT and see how forward-thinking organizations are incorporating GDPR best practices into Third-Party Risk processes. Our team of experts will:

• Outline GDPR requirements as they pertain

Banks are on a quest to improve the customer experience. A new study of 80 North American bank operations leaders by Accenture found that 74 percent believe the customer experience is one of their banks’ greatest strategic priorities.

Number two on the list: Fraud and risk management (70 percent of respondents).

Why not do both at the same time? About half of survey participants predict bank operations’ “primary role in three years as achieving straight-through processing through digital technolog

marcus evans will host the 12^th Edition Model Risk Conference on June 25-27, 2018 in New York. This conference will provide firms with practical tools to enhance infrastructure capabilities and improve model lifecycle management, in order to foster faster responses to changing regulatory demands. Attendees will explore best practices for employing advanced analytics and improving quantitative capabilities to help further optimize model validation techniques. Finally attendees will evaluate the C

Facebook’s market capitalization dropped as much as $60 billion after reports emerged that Cambridge Analytica, the data consulting firm used by the Trump Campaign, was given the data of around 50 million Facebook users without their consent.

The Cambridge Analytica scandal is the latest in a series of risk management failures that have plagued the social networking company, which has been grappling with its role in the dissemination of fake news propaganda during the 2016 U.S. presidential elect