Risk managers in the financial services industry are navigating a vast web of regulatory requirements, a constantly evolving risk landscape, and rising customer expectations. All of this change and volatility amplifies the seriousness of establishing effective IT risk management and compliance processes. As banks and other financial institutions adapt to these challenges, many have started to leverage technology to improve customer satisfaction and drive efficiency. However, with great innovation comes great risk. Regulators have…
In 2020, corporate ethics hotlines saw a significant decrease in reports from employees regarding a wide range of issues, but most notably tips about potential fraud and bribery. Despite reports involving COVID-19 health and safety concerns increasing by 47% throughout 2020, these hotlines saw a 7.1% decrease in total reports from the previous year. The decrease could be attributed to recent pandemic-related layoffs as well as business closures, meaning that with a smaller workforce,…
Deutsche Bank recently announced that it is restructuring its compliance functions as the bank's longtime chief risk officer prepares to depart after 25 years at the institution. Deutsche Bank stated that it intends to restructure the chief risk office to create a seamless transition, shifting compliance and anti-financial crime responsibilities to the bank’s chief administrative officer, Stefan Simon. This reported shake-up is designed to allow the bank to consolidate functions that require coordinated dialogue…
Modern business operates in a dynamic and constantly evolving world, with risks lurking around every corner. Organizations need to understand that their enterprise risk management framework and processes must encompass all aspects of the business and manage its changes efficiently over time. For financial services firms, enterprise risk management (ERM) addresses not only common operational risks (such as accidental forfeitures), but also financial, strategic, legal, and other risk categories to maximize resources, reduce costs,…
The United States Senate recently confirmed the Biden administration’s nominee for chairman of the Securities and Exchange Commission (SEC), Gary Gensler. Formerly a Goldman Sachs banker and a commodities regulator under the Obama administration, Gensler has gained a reputation for being an aggressive regulator. Many see the confirmation as setting the stage for drastic reforms in the regulatory landscape, particularly in the area of environmental, social, and governance (ESG) risks. Gensler has promised publicly to increase…