Risk Management
Risk management is business critical for financial services firms. Having robust frameworks that are embedded in ‘business as usual activity’ is the minimum expected from our regulators. Despite this, firms often overlook the basics of risk management and the mitigation of business risks before they become harmful. When this occurs, the impacts can be significant and wide-ranging, providing executives with a difficult regulatory question to answer- ‘why didn’t we see this coming?’
The FCA say “A firm should establish and maintain appropriate systems and controls for managing risks” to “prevent system and process failures, or identify them to permit prompt rectification”.
Mutual Governance can help by assessing your current policies and procedures to help you stay on the right side of risk by looking into the following:
– The quality of risk framework. Is it clear, understandable and embedded in BAU activity, promoting a healthy ‘risk culture’ in your firm?
– The quality of the management tools. Are they readily available to all staff, do they actually help mitigate risks?
– The details behind the risk appetite and tolerances. Are they fit for purpose, do they really reflect what the business is willing to withstand and absorb in times of adversity
– The ongoing reviews and assurance. Are firms ensuring that the Risk framework, risk management and culture remains valid and effective in an ever-changing business and regulatory landscape?
For more information or further discussion please do not hesitate to get in touch.