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…
Anti-money laundering (AML) has been an important aspect of compliance activities and processes in the financial services industry for over a century. As the global financial system has grown more sophisticated and complex, AML has become significantly more important. This increased importance has made complying with AML regulations a critical element of governance, risk, and compliance (GRC) management for financial institutions. AML enforcement and fines for failing to apply and/or maintain proper controls have…
There are many factors to consider in cultivating a risk culture within your organization. In Part 1 of this series, we discussed the critical nature of getting people involved and engaged in risk management processes. In Part 2, we looked at other internal factors and how to take a systematic approach to reviewing them. In the prior installment, we explored how external factors can have profound impacts on the risk culture. In this fourth…
The Consumer Financial Protection Bureau (CFPB) released its annual Consumer Response Report to Congress on March 24. The Bureau has analyzed the responses and found that there was a 54% increase in complaints in 2020 from the previous year. The total number of complaints rose from 352,400 in 2019 to 542,300 in 2020. The CFPB believes that the pandemic played a significant role in the increase of complaints. The CFPB stated that while only…