CHALLENGE
A multinational bank is facing pressure from regulators to demonstrate how it was managing its non-financial risks. The bank had a fragmented approach to risk management, and it was difficult to track and manage risks across the organisation.
SOLUTION
Development of an Enterprise Risk Management (ERM) framework to:
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Define Key Risk Indicators (KRIs).
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Identify all stakeholders in the risk management process.
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Redesign the bank's policy framework to align with the new ERM framework.
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Develop a risk management tool to track risk data.
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Implement effective risk controls across business units.
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Develop clear reporting for committees and the board.
IMPACT
The bank has now a comprehensive and integrated ERM framework that allows it to:
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Identify and assess all significant non-financial risks.
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Develop and implement effective risk controls.
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Report on risk management activities to stakeholders.
The bank is now able to demonstrate to regulators that it is effectively managing its non-financial risks.
