riskmanagement (44)

Most businesses can thrive quite well as long as the economy and environment remain healthy. We only learn about corporations that use excessive leverage or take on excessive risks during a financial crisis. The 2008 financial crisis was one such incident; many enterprises that had taken on excessive risk when times were good ended up collapsing. The current pandemic is another example of a comparable crisis that has highlighted many companies' worst weaknesses. 

Numerous firms recognized that t

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Aligning activities with the company goal and executing them according to a structured strategy contributes to risk mitigation and enhances the likelihood of business success. However, there is a stage in Strategic Planning that is sometimes ignored despite its critical nature: the study of business risks. 

Organizations of all sorts and sizes are subject to external and internal pressures and variables that make their success unpredictable. Risks that are not properly quantified harm the busine

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Risk management is not a one-time or limited-time activity — it is a continuous process that must constantly operate properly. This is also why achieving ongoing progress in risk management can be so difficult for organizations - it needs year-round monitoring and dedication. 

The majority of organizations employ specialized risk management framework people, who serve as the business's sole line of defense against risks. This arrangement, we feel, is not sustainable. Any system that needs contin

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The first step in risk management is to identify them: while there are some common threats that fintech companies face, not all of them provide the same services or operate in the same markets, which means that each company faces unique safety and prevention challenges. 

Having said that, we recommend that you identify the risks that your fintech faces based on the unique characteristics of its products and services, as well as the unique characteristics of its target audience and environment. 

Co

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Both risk and compliance management are dynamic fields that constantly evolve. Risk and compliance are impacted by a changing business environment, the economy, changing customer demands, and a company's vision, among other factors. Most of the changes we have observed in banking have been driven by information technology. The 2008 financial crisis was another significant force for change, as it forced the banking industry to rethink its risk management practices in light of the financial crisis

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Banks typically view risk and compliance as critical components of the business that enable it to operate, but do not anticipate the risk and compliance department to contribute to the bank's growth. Take note that both risk and compliance are critical components of banks' strategic growth plans. 

As a bank grows, it requires more sophisticated risk and compliance capabilities; therefore, the majority of banks budget for increased risk and compliance management costs and include them in their gr

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The FinTech revolution has allowed many new players to enter the market. Disruptive banks and open banking have become serious competition for traditional banks. These new banks and financial services applications have yet to build a reputation. But that also means that they are not notoriously unethical. Which is probably an advantage. 

Step 1: Make Integrity Your Core Value 

Banking is a business based on trust. And trust is based on the belief that a company conducts its business with integri

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Risk and compliance technology has been on the horizon for a long time but there is a very simple reason that many banks and financial institutions were not using it – risk and compliance management does not result in profits. However, certain changes in the market that have occurred over the past 5 years have completely changed the dynamic of risk and compliance technology for smaller companies and has resulted in increased technology adoption in companies across the country.  

Why Businesses He

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Undoubtedly, the current global contingency has shaken the operating model of companies in various sectors. This confronts us with a reality previously unthinkable for many of the businesses that had not developed sufficient capacities. 

From a business perspective, the impact of the pandemic has left companies in various positions: 

  • Businesses that have suddenly lost relevance and even viability. 
  • Sectors with unstable structures and vulnerabilities that are sustainable in the short term, and
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The management of risk is coordinated set of activities designed to manage and protect a company against potential threats, whatever their involvement, this entails planning and use human and material resources to minimize risks or treat. 

It is a strategy that involves the preventive work of anticipating possible situations and considering the practice as part of the company's processes, but it also includes acting in a prescriptive way, that is, when the risk manifests itself without having b

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Understanding Risk Management

According to the ISO 31000 standard, risk management is the process that allows companies to identify, analyze, evaluate, and take action to control the risk situations to which they are exposed. These are adverse events that interfere if materialized, they hinder or affect the achievement of the objectives and can represent damages and losses. 

Simply, risk management is a codified way to mitigate the risks that will harm the future of the company. Every action we take has an inherent amount of

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GRC tools have truly come of age in the past few years. There was a time when GRC solutions were clunky pieces of software which were hard to implement for businesses and cost millions of dollars to implement. Even though these solutions were so complicated, they did not really provide too much of a benefit and were only beneficial for very large businesses which had a lot of governance, risk, and compliance workloads. However, like all technologies, the price of GRC solutions has gone down, and

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Regulatory change management is a critical process for any business operating in an industry that faces regular changes in federal and state level regulations. Most businesses do not have to worry about regulations too much, but those that operate in industries where the government periodically changes the rules need to make sure that they have the capability to adapt with the changes occurring in the regulatory framework.  

Managing regulatory change requires knowledge and experience in understa

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Improving risk management for third parties has been a constant concern of compliance officers in their work as responsible for an anti-corruption program. At the beginning of each year, the results of the management are evaluated and some organizations make great efforts to improve the risk management of third parties, it cannot be hidden that third parties are increasingly posing greater threats. 

For this reason, we believe that it is a good idea to share here a series of suggestions to improv

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A New Era of Risk Management

There is no doubt that traditional banking, both in Latin America and in the rest of the world, has played an important role in credit risk management. However, implementation and performance models have lagged behind the application of new, more effective technologies. While fintech and online companies process loans without collateral, requesting few documents and in five minutes, banks are still adapting to this reality. For these financial institutions should move quickly to use with big dat

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Finally I get stats 101

8219693079?profile=originalI don’t know if you have noticed, but I have been blogging about measurement, data, and statistics for the past 19 weeks. All to defeat quantifornication – the act of pulling numbers out of thin air for decision making. Numbers that are seemingly reliable but are not.

This week, Tuesday 10th November at 15:00hrs AEDT, I am presenting with my colleague Dr Andrew Pratley. Our presentation is Statistics 101 Applied to Controls – How to test and measure control resilience. Our presentation is part of

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Optify your advice

8219694066?profile=original“Provided with the freedom to choose, decision makers are likely to act more rationally and be more fully behind the decision.” Is how I finished last week’s blog.

Optifying your advice is delivering the freedom to choose in the optimum way. Your optimum way. And it follows the Rule of Three.

People like things in threes. Think of The Three Little Pigs or The Three Musketeers or Superman’s: ‘truth, justice and the American way’. Or ask Shakespeare’s Julius Caesar: ‘Friends, Romans, Countrymen’; or

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Hating Restraints

8219691475?profile=originalPeople mostly don’t like to be restrained. We also don’t like some constraints but we like others. For example, we like choice when buying but we don’t like too many choices.

Restraints on the other hand are an attack on our freedom.

Take seat belts for example. They were first invented the century before last! The modern retractable 3-point seat belt was invented in the 1950s. However, seat belt wearing was not compulsory and it took government legislation, regulation and enforcement to get more

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Beyond Nudging

8219692657?profile=originalSometimes you need to go beyond nudging decision makers. However, the personal risk you take when challenging a decision depends on culture.

Last week I was given cause to reflect on my time at HIH Insurance and the causes of its demise in 2001. While there were many, and people with different lenses could easily come to different conclusions, my view is that the culture did not allow sufficient leaders to speak their mind.

The CEO, Ray Williams, was a powerful personality. One of the most caring,

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