CapGemini hosted a conversation on enterprise risk management this morning at GARP. Panelists touched on a number of issues that need to be tackled for successful enterprise risk management:
- Helga Houston from Phoenix Global Advisors pointed out that many banking institutions grew very rapidly over the last 10 years and for the most part the risk management infrastructure didn’t keep pace.
- Bradley Farris of BB&T agreed with Houston and added that the “demands on the data side are incredible.”
- Houston touched on another key point: risk information surfaced to the business needs to drive dialog with the business. Everyone agreed that risk management needs to engage with the business, to reinvent language so that risk managers can have fruitful conversations with the business. Her point was that without having buy in from the business it’s very hard to change processes to mitigate risks.
- Panelists also focused on the importance on governance processes and infrastructure to support the dialog with the business. All agreed that the market and credit risk processes are typically well-supported and that there’s a lot of opportunity for improvement in the operational risk domain.
It’s clear that one of the themes of the conference is that risk managers have to engage the business with information and dialog that’s useful to enhancing the performance of the business vs. satisfying risk management needs alone.
Tags: GARP Live Blogging