Take a look at the news lately and you’ll see big names in financial services struggling to recover from serious reputation damage. Why? Unclear risk appetite messages were cascaded down the chain of command. Take a new look at the message you are sending and the message being received.
Ri$kMinds brought together leaders from all sectors of the risk world to discuss the problems and future facing facing financial services institutions across the globe. Clark Abrahams brought back some notable quotes and his thoughts on the increased regulatory. He seems recharged by the idea that innovation, regulatory compliance and business strategy fit together for the perfect competitive puzzle.
Although CEOs and management teams are responsible for crafting strategic direction, Clark Abrahams says that board of directors need to be involved in strategic planning from the beginning. He offers a playbook idea to give boards a level set of knowledge on everything from competitor and industry analysis to risks and financials. That foundation will help them ask the right questions from the start.
What can corporations and financial institutions do to reinforce or restore the public’s trust? Clark Abrahams says that the answer is easy: improved governance, transparency, a return to fundamentals, and effective stakeholder communication. But this solution starts at the top.
With close scrutiny from the regulators and government agencies, senior managers and boards are increasingly relying on its compliance teams. Read what role an organization’s compliance team plays in making strategic decisions.
Corporate culture is the foundation for any business. It dictates how employees will treat customers and one another, and it molds the kind of image and brand reputation that management desires. A corporate GRC culture goes even farther to improve internal controls and minimize surprises. Read Clark Abrahams’ five steps to building your GRC culture.
Organizations that are effective at governance, risk and compliance have found an intersection between business strategy and enterprise GRC. Read Clark Abrahams’ discussion of how Greg Monahan’s SOAR methodology and others like it can help other organizations find that intersection.
In an enterprise setting, policies and procedures often transcend departmental boundaries, and the actions taken by one group can drastically impact their downstream associates. Read Clark Abrahams’ advice for integrating to solve complex GRC issues.
The benefits of a governance, risk and compliance culture are early identification, monitoring and control of risk. An organization that incorporates GRC at every level will see fewer losses, increased efficiency and productivity and enhanced reputation.
Some dismiss GRC because they see it as a “boil the ocean” solution that tries to take on so much as to be completely overwhelming and impractical. Clark Abrahams suggests a step-by-step approach, starting with a current business pain.