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.
Development of an Enterprise Risk Management (ERM) framework to:
Define Key Risk Indicators (KRIs).
Identify all stakeholders in the risk management process.
Redesign the bank's policy framework to align with the new ERM framework.
Develop a risk management tool to track risk data.
Implement effective risk controls across business units.
Develop clear reporting for committees and the board.
The bank has now a comprehensive and integrated ERM framework that allows it to:
Identify and assess all significant non-financial risks.
Develop and implement effective risk controls.
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.