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Culture & Governance


How to Use ERM, ML and Scenario Analysis to Advance Your Risk Career

Financial institutions have been attempting to move away from risk silos for years, but true, integrated enterprise risk management (ERM) remains a work in progress. Since some on the business side...

July 1, 2022 | By Tod Ginnis


Getting Schooled on Risk: Graduate Programs Cultivate Talent for the Times

When risk management veteran Clifford Rossi started out in the 1980s with a Cornell University PhD in Financial Economics and Quantitative Methods, his goal wasn’t to become a risk specialist per se,...

June 24, 2022 | By L.A. Winokur


Can Your ERM Framework Accommodate Risk Entanglement?

Risk managers spend considerable time honing their skills in measuring and managing individual risks. Lamentably, far less attention has been given to understanding not only the interactions between...

June 17, 2022 | By Clifford Rossi


U.S. Law and Global Challenges Reshape AML Compliance

Regulators send insistent messages with a steady beat of anti-money laundering and financial crime enforcement actions. A few recent examples are USAA Federal Savings Bank’s $140 million in civil...

June 3, 2022 | By Jim Romeo


Building a Unified Theory of Risk Management: How and Why

Our risk management frameworks have not advanced commensurate with the level and trajectory of risk over time. A new paradigm is therefore desperately needed. Take, for example, enterprise risk...

May 13, 2022 | By Clifford Rossi


Anchorage Digital Bank Found Deficient in Anti-Money Laundering Compliance

Anchorage Digital Bank, which markets itself as “the first federally chartered digital asset bank,” has been ordered by the U.S. national bank regulator to correct anti-money laundering (AML)...

May 13, 2022 | By Jeffrey Kutler


Engineering a Diverse Workplace: Edward Jones’ CRO Is Determined to ‘Be the Difference’

Edward Jones chief risk officer Christopher Van Buren recently revealed that his biggest career lesson to date is that he “can be the difference.” It is something he said he didn’t have the...

May 6, 2022 | By L.A. Winokur


How Advanced Technologies and AI Are Helping to Achieve Compliance, Improve Operations and Meet ESG Goals

Historically, compliance and risk management have been viewed as critical functions, but not functions that proactively generate business value. Honeywell’s Amanda Sabates: Visualizing risks and...

April 29, 2022 | By Amanda Sabates


Ibrahim Dusi, 'Super App' CRO

The race is on to be the most sought after financial super app, simplifying access to a full array of banking, credit and other services via mobile devices. Revolut, founded in London in 2015 as a...

April 22, 2022 | By Katherine Heires


Risk Executives on the Move: Wells’ Norton Joining Credit Suisse’s Board

Amanda (Mandy) Norton, who announced her retirement in January from Wells Fargo & Co. after serving more than three and a half years as chief risk officer, will be joining the Credit Suisse Group...

April 15, 2022 | By Jeffrey Kutler


While Data and Tech Skills Are in Demand, Analysis and Communication Still Matter

Even as data management and technology skills are seen as increasingly essential for risk managers, observers of the profession and of recruiting trends say that longstanding analysis and...

April 15, 2022 | By John Hintze


Resilience in the Face of Geopolitical Threats

For the last two years, it feels like we’ve lived in a state of ongoing crisis as unexpected global events have disrupted organizations in every part of the world. From a global pandemic and massive...

April 1, 2022 | By Bogdana Sardak


The Risk Landscape Is Crowded and Complicated. What Happens Next?

From consulting firms and think tanks to central banks and the International Monetary Fund, there is no shortage of documentation and data points on the perils of the world and, as categorized in the...

March 25, 2022 | By Jeffrey Kutler


FinCEN Identifies Significant Threats, Signals Closer Oversight

The financial industry doesn’t need a crash course in anti-money laundering and countering the financing of terrorism (AML/CFT) regulations. They have been in place and evolving since the U.S. Bank...

March 25, 2022 | By Jim Romeo


Restrictions on Russia Highlight Growing Complexity of U.S. Sanctions Regime

The stepped-up economic sanctions against Russia and the sectors they target exacerbate the burdens and risks for businesses facing compliance obligations – tasks both facilitated and complicated by...

March 18, 2022 | By John Hintze


IERM: How to Build a True Risk-Business Partnership

Some of us dream of Olympic glory. Others, of making it big by backing the next meme stock before it goes to the moon. For the past three decades or so, financial and corporate strategy teams have...

March 18, 2022 | By Alla Gil


Managing People Is Risky Business

It’s a paradox made more pronounced by the pandemic: People are a company’s greatest resource, and also its greatest risk. Start with all the buzz around the Great Resignation, which saw a record 4.5...

February 11, 2022 | By L.A. Winokur


Cyber and Compliance, ESG and Organizational Resilience: They’re All Connected

2021 was a record year for cyber breaches, as reported by the Identity Theft Resource Center. With high-profile attacks hitting the headlines – from SolarWinds to Colonial Pipeline to CNA Financial,...

January 28, 2022 | By Lauren Kornutick


5 Risk Predictions for 2022

As we start a new year, it’s a natural time to reflect on the past as well as our future. The last two years have shown that we still live in a complex and uncertain world, despite all the advances...

January 14, 2022 | By Cristian deRitis


How to Manage Conduct Risk: Building a Proper Ethics Plan

Public perception that financial institutions are driven by greed and willful blindness has recently been reinforced by a seemingly never-ending litany of scandals. This impression of failure is a...

December 17, 2021 | By John Thackeray


Antiquities Are New Front in AML Battle

The U.S. Bank Secrecy Act (BSA) and its anti-money laundering regulations have progressively expanded to apply to activities beyond cash and bank transfers, and the Anti-Money Laundering Act of 2020...

December 10, 2021 | By Jim Romeo


The Federal Home Loan Bank of Chicago’s Path from CRO to CEO

While rising to the challenges of 21st-century crises, chief risk officers have gained in prestige and C-suite positions. Rarely, however, do former CROs become chief executive officers, with...

December 3, 2021 | By L.A. Winokur


Mirea Raaijmakers: Reining In Behavioral Risk at ING

The global crisis of 2008, combined with academic work in behavioral economics, has sensitized the financial industry to the human element in catastrophic events. As MIT finance professor Andrew Lo...

November 19, 2021 | By Katherine Heires


Managing Global Risks in Light of the Pandora Papers Leak

Editor’s Note: This article is adapted from one that appeared on the website of law firm King & Spalding. The co-authors are partners Drew Hruska, Zack Harmon, Kyle Sheahen, Robert Dedman, Sumon...

November 5, 2021 | By King & Spalding


There’s an Opening at the Top of the OCC, but No Vacuum

In the fragmented and multilayered architecture of U.S. financial regulation, one agency is arguably first among equals. The Office of the Comptroller of the Currency, a Treasury Department bureau...

November 5, 2021 | By Jeffrey Kutler


Are Crypto Assets a Financial Stability Risk?

Policymakers are working feverishly to bring some regulatory order to cryptocurrency markets, but it remains very much a work in progress. Approaches are being debated in legislative bodies, as well...

October 22, 2021 | By Jeffrey Kutler


Managing Remote Workforces: It's Still All About the People

Spyro Karetsos was hired as Google's chief compliance officer more than a year ago, but he has not yet actually gone to work - to the office, that is. In fact, everything from the interview process...

October 15, 2021 | By L.A. Winokur


Reaping the Benefits of Unified Data: Why Integrated Surveillance Is a Journey, Not a Solution

Integrated (or holistic) surveillance has been a hot topic in the financial services industry for several years, because of the view that bringing together diverse data sets and analyzing them...

September 24, 2021 | By Matt Smith


The Crucial Link Between Operational Resilience and Customer Trust

Trust is arguably one of the most important brand assets in business. Every transaction is a promise made, and businesses must ensure they keep their promise to customers - such as delivering goods...

September 24, 2021 | By Michael Campbell


Boardroom Diversity Directives: Window Dressing, or Potentially World-Changing?

An often-repeated refrain on the topic of boardroom diversity is that it requires a trade-off: sacrificing quality to satisfy quotas. It doesn't have to be - and shouldn't be - that way. Take, for...

September 17, 2021 | By L.A. Winokur


Improving Productivity by Creating a Culture of Inclusivity and Trust

At this time of hybrid working environments, in homes and increasingly back in offices, a prerequisite for an effective, productive organization is a culture of inclusivity and trust. A hybrid...

August 27, 2021 | By John Thackeray


How to Develop an Enterprise Risk-Rating Approach

A risk taxonomy and risk-rating scales are foundational components of enterprise risk management (ERM). The former gives a firm the ability to pinpoint all of its risks, while the latter allows...

August 26, 2021 | By Brenda Boultwood


How to Develop an Enterprise Risk-Rating Approach

A risk taxonomy and risk-rating scales are foundational components of enterprise risk management (ERM). The former gives a firm the ability to pinpoint all of its risks, while the latter allows...

August 20, 2021 | By Brenda Boultwood


What a Difference a Pandemic Makes: Risk Management Is Having Another Moment

To upend an old adage, it's the worst of times, with the world still reeling from the COVID-19 pandemic and its devastating health and economic consequences. And yet, it's perhaps the best of times...

August 13, 2021 | By L.A. Winokur


CEOs Speaking Out: Reputational Risk and the Social-Issues Minefield

It's one thing for CEOs to be outspoken about business. It's their bailiwick. It's quite another when they speak out on social issues, opening themselves up to criticism that it is not directly...

July 16, 2021 | By L.A. Winokur


The Critical Relationship Between ERM Maturity and Value Creation: Buyer Beware, and a Call to Action (Part II)

In Part I, I explored the concept of Enterprise Risk Management Maturity Models, and how they can be effectively used to identify an organization's current ERM capabilities across multiple...

July 16, 2021 | By David Fisher


How to Develop an Enterprise Risk Taxonomy

Every firm needs a comprehensive enterprise risk management (ERM) strategy to identify, assess and manage risks consistently across critical business processes, in all business units. But true risk...

July 16, 2021 | By Brenda Boultwood


Behavioral Finance Theory Gets Real in Risk Management

Behavioral and cognitive science, a mainstay in economics based on the work of Nobel laureate Daniel Kahneman and others, is wielding greater influence in various areas of risk management. A growing...

July 9, 2021 | By Katherine Heires


Climate Risk: Forecasting, Policy and Scenario Analysis Challenges

What does a critique of econometric analysis from the 1970s have to do with addressing climate risk today? Everything! Risk managers, forecasters and modelers need to keep the Lucas Critique top of...

July 9, 2021 | By Cristian deRitis


Pandemic Puts India's Diversity Record to a Test

Gains in gender diversity, among other inequality issues getting high-level policy attention before COVID-19 struck, have been set back since. It is a harsh reality now being faced in India, one of...

July 2, 2021 | By Nupur Pavan Bang


The Critical Relationship Between ERM Maturity and Value Creation: Buyer Beware, and a Call to Action (Part I)

I recently had the opportunity to speak with a senior executive at a large financial institution who was wondering aloud why he wasn't getting more value out of his investment in enterprise risk...

July 2, 2021 | By David Fisher


When Developing a Risk Appetite, Don't Forget Untreatable Risks

How much risk would you be willing to accept to meet your company's performance objectives, if you were a board member of a CRO? Moreover, what types of limits, if any, would you place on...

June 18, 2021 | By Brenda Boultwood


Swans, Rhinos and Elephants Are Animating Risk Debates

The Black Swan casts a long shadow. The concept illuminated in Nassim Nicholas Taleb's book, required reading in investment and risk management and various other disciplines, seemed to explain so...

June 18, 2021 | By Jeffrey Kutler


Risk Model Benchmarking and Innovation: Pros and Cons

Last month, the European Central Bank published the results of its monumental TRIM project - a detailed five-year exercise to assess the internal models used by large banks to determine risk weights...

May 28, 2021 | By Tony Hughes


Where the Pandemic Led Us - What's Next in Regulatory Compliance

When the pandemic hit, we certainly sensed there would be a strong impact on our social lives. But what was not immediately apparent was the extent that Wall Street and its regulated financial...

May 21, 2021 | By Chris Wooten


Risk Governance: The Importance of Acknowledging Risk

Strong risk governance is about risk acknowledgement, accountability and clear mechanisms for risk-based escalations and delegations. Under a well-built governance framework, acknowledged risk-taking...

May 21, 2021 | By Brenda Boultwood


Wharton School Professor Leads SEC Division of Economic and Risk Analysis

Jessica Wachter of the University of Pennsylvania's Wharton School has been named director of the Securities and Exchange Commission's Division of Economic and Risk Analysis (DERA), which provides...

May 14, 2021 | By Jeffrey Kutler


The New Basel Framework for Climate Risk Management: Pros and Cons

The Basel Committee on Banking Supervision (BCBS) recently published an interesting framework for climate risk that includes helpful advice on how a financial institution can integrate climate...

May 14, 2021 | By Marco Folpmers


Risk Management in Uncertain Times: How to Prepare for Both the Expected and Unexpected

Facing super-low interest rates, an onslaught of regulatory developments and the emerging priority of climate risk, banks today are under tremendous pressure. However, despite current challenges,...

April 30, 2021 | By Peter Plochan


SolarWinds: A Wake-Up Call and Opportunity to Assess Supply Chain Risk Management

The recent SolarWinds incident served as a wake-up call: Having separate cybersecurity, supply chain, and enterprise risk management (ERM) disciplines and units within an organization is increasingly...

April 16, 2021 | By Marianne Bailey, Jason Dury and Kate Sylvis


Risk Managers and the COVID Couch

Desperate COVID-19 times have called for desperate measures, and, as it turns out, a decent-sized dose of TLC. More than a year on, many companies and their executives continue operating in crisis...

April 16, 2021 | By L.A. Winokur


Evolving from Business Continuity to Full Operational Resilience

If business continuity is the immediate plan to ensure that a business is able to continue providing services and survive, then operational resilience is the larger strategy that business continuity...

April 9, 2021 | By David LaFalce


5 Post-Pandemic Lessons for Risk Managers

While COVID-19 continues to weigh on public health and the economy, signs of resolution are on the horizon. Though we remain focused on the pandemic, vigilance today does not preclude us from...

April 1, 2021 | By Cristian deRitis


How to Improve Resilience and Adaptability Post-COVID

An alarming 43% of board members in Europe believe that COVID-19 represents a fundamental threat to the survival of their organization. That's according to a Board Agenda-Mazars-INSEAD Leadership in...

March 26, 2021 | By Haydn Shaughnessy and Fin Goulding


How to Use Regulatory Change and ERM to Improve Business Performance Management

For the largest banks, the Federal Reserve recently finalized rules that will impact stress tests, capital buffers, regulatory reporting and loss-absorbing capacity. In lieu of reporting certain...

March 19, 2021 | By Brenda Boultwood


How to Regulate Big Tech? The BIS Has Some Ideas

By measures ranging from revenue and workforce growth to market valuation and mind share, Big Tech stands out in the corporate world. It is also at risk of paying a price for rampant success, if...

March 19, 2021 | By Jeffrey Kutler


Regulation Is Rising on the Risk Radar

Following a familiar pattern since he took office, President Joe Biden on February 24 issued executive orders to unwind actions taken by his predecessor. One of that day's revocations was a 2017...

March 5, 2021 | By Jeffrey Kutler


Risk Management Silicon Valley-Style

Even Silicon Valley has to face the music. Risk and regulatory pressures are rising for corporations everywhere, so it's not surprising to see some of the biggest names in tech taking steps to be...

February 12, 2021 | By L.A. Winokur


New Administration, New Hope for Clarity on Crypto

In May 2015, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) cracked down on cryptocurrency company Ripple for anti-money-laundering lapses. The action was tone-setting in at least...

February 5, 2021 | By Jeffrey Kutler


World Economic Forum: Pandemic Is One Risk Among Many

As it does every year, the World Economic Forum identifies and analyzes a long list of threats and hazards - 35 to be exact - in its latest Global Risks Report. One of them stands apart from all the...

January 29, 2021 | By Katherine Heires


Operational Resilience Across Sectors and Disciplines

Simply put, the global shocks of 2020 were unmatched by any time in recent history. Not only did the COVID-19 pandemic reach a scale and longevity that rippled through the way organizations operate,...

January 22, 2021 | By Brian Molk


Top 6 Banking and Risk Management Predictions for 2021

It's all things digital for financial services. The COVID-19 pandemic has accelerated the pace and acceptance of change in financial services, and new methods of banking and managing risk will...

January 15, 2021 | By Brenda Boultwood


Doing the Right Thing: Diversity & Inclusion and the Risk Function

Risk experts say it's a sign of the times. Companies and other institutions have been finding themselves facing - or being forced to face, depending upon how one looks at it - a ramped up and long...

December 18, 2020 | By L.A. Winokur


Global Stability Assessments: Resilience Reaffirmed, but No Time for Rejoicing

The crisis of 2008 sensitized the financial industry and its regulators to threats to economic and systemic stability. Policy reforms, designed to prevent worst-case recurrences, were accompanied by...

December 11, 2020 | By Jeffrey Kutler


Compliance Teams Seek Trade Surveillance Upgrades

Amid challenges related to staff working from home, risk and compliance teams at trading firms need to up their game when it comes to conducting both trading and communications surveillance....

November 13, 2020 | By Katherine Heires


AML Compliance and Enforcement: Much Maligned but on Path Toward Modernization

The FinCEN Files, a series of reports published in September by BuzzFeed News, criticized the anti-money-laundering efforts of global banks and shed some unflattering light on the system of...

November 6, 2020 | By Katherine Heires


Pandemic in Retrospect: How Will Risk Management Be Judged?

Risk is the absence of information. There is risk in absolutely everything we do because we can't possibly know all there is to know. This is especially true in a pandemic. In a COVID-19 world, we...

October 30, 2020 | By David X Martin


Pandemic Challenges: How AI Will Change Risk and Compliance

Technology in risk and compliance has, to date, yielded limited success, even after many millions of dollars in investments. But, as more financial institutions adopt artificial intelligence (AI),...

October 16, 2020 | By Brenda Boultwood


Ideals of Diversity and Inclusion Confront Pressures of the Pandemic

In a 2015 report, The Power of Parity, McKinsey & Co. concluded that if women fully participated in the world economy, global GDP would increase $28 trillion by 2025. India alone could account for...

October 9, 2020 | By Sai Nitya Bodavala and Nupur Pavan Bang


No Mere Abstraction: When COVID-19 Literally Hits Home

The pandemic is all over the news and on everybody's mind. This is especially true of risk managers. It is top of mind as we assess and set priorities in view of increased cyber attacks associated...

September 11, 2020 | By David X Martin


CROs Ponder Risk in Uncertain Times

Risk management folks aren't known for being touchy-feely types. But these days, many are mindful of the moment, as companies take stock of their risk management programs and protocols and prepare...

September 4, 2020 | By L.A. Winokur


Wells Fargo Builds Out a Team of CROs

While continuing efforts to dispel regulatory clouds lingering from the sales-practices scandal that came to light in 2016, Wells Fargo & Co. has adopted a risk management structure that places chief...

August 21, 2020 | By Jeffrey Kutler


CROs Seek Pandemic Solutions

“I thought I had seen it all,” recalled Paul Fabara, chief risk officer at Visa, referring to previous financial crises that have taken place during his decades-long career at other credit card and...

July 24, 2020 | By L.A. Winokur


CFTC's Chairman Champions Principles-Based Regulation

June 25 was a busy day for the Commodity Futures Trading Commission. Its open meeting resulted in approvals of two final rules, withdrawal of a previously proposed rule and supplemental proposal, and...

July 10, 2020 | By Jeffrey Kutler


At Visa, the Globalization of Risk - and of Its Chief Risk Officer

In September 2019, Paul D. Fabara became executive vice president and chief risk officer of Visa. Over the previous eight years he held several senior positions at American Express Co., including...

July 2, 2020 | By Jeffrey Kutler


Climate Credit Risk: Lessons from the PG&E Bankruptcy

Modeling climate risk, and analyzing your risk of default, is extremely difficult - particularly if you are an electricity provider. All one has to do to realize the enormity of this challenge, and...

June 26, 2020 | By Tony Hughes


COVID-19 Fuels Integration of ESG Ratings

For years, environmental, social and governance (ESG) factors have been a priority among institutional investors. COVID-19 has underscored the significance of the 'S' risk, as the public health and...

June 19, 2020 | By John Hintze


Transformational Risk Leadership in Turbulent Times: How to Address Modern Problems

Brenda Boultwood Many of us grew up thinking of all the places we could go and the problems we could solve, a la the main character in Harold's purple crayon. Harold's special crayon allowed him to...

June 12, 2020 | By Brenda Boultwood


Compliance and Conduct in the Age of Coronavirus - Are Lessons Already Learned?

When the workforce began to pivot to new work-from-home or other, varied offsite environments, virtually no area within a financial institution went unaffected by the shifts. Nearly everyone had to...

June 8, 2020 | By Ted Sausen


The Cannabis Industry Gets an Introduction to Risk Management

More than 30 U.S. states have decriminalized or legalized marijuana. Many of them declared cannabis products to be “essential,” allowing them to be dispensed during pandemic lockdowns, preserving...

May 29, 2020 | By Ted Knutson


The Risk Governance Power Structure: How Does it Work?

Whether in good times or bad, risk-taking is how companies generate earnings. In times of crisis, the effectiveness of response determines an organization's agility and resilience. If corporate...

May 15, 2020 | By Brenda Boultwood


Pandemic Fallout: The Risk of Reopening Too Early or Too Late

As we surpass 60 days since the first 100 COVID-19 infections were confirmed in the United States, states and local municipalities are debating how and at what pace to reopen their economies. Some...

May 15, 2020 | By Cristian deRitis


Water Risks on the Rise

Like many multinationals, packaged-foods giant General Mills relies heavily on sustainable freshwater supplies. It needs neither too much nor too little, and of sufficient quality - a Goldilocks...

May 8, 2020 | By John Engen


The World Economic Forum on Pandemic Alert

When the time comes to judge who knew what, and how early, about the coronavirus pandemic, and whether public health alarms were too late, there need be no blame or shame at the World Economic Forum....

May 8, 2020 | By Ted Knutson


Crises Need a Different Approach to Risk

Crises labeled as unprecedented catastrophes create unnerving anxiety. Suddenly, issues that seem abstract in everyday life become critical, with no definitive answers: How bad will it get? Whose...

May 1, 2020 | By Karamjeet Paul


Integrated Risk Management: Driving Corporate Sustainability in a Post-Pandemic World

Times get tough, life eventually settles to a new normal and we plow on. It's now time to rethink how we should work, rather than continue to navigate within the old construct. Looking ahead, in the...

April 17, 2020 | By Brenda Boultwood


For the COVID-19 New Normal, Risk and Compliance Advisories Aplenty

The coronavirus pandemic has set off a wave of financial and operational disruption - as in the case of remote work arrangements - causing sudden shifts in risk exposures and mitigation measures....

April 3, 2020 | By Katherine Heires


Brian Brooks Leaves Coinbase to Take a Senior Bank Regulatory Post

Brian Brooks, a prominent spokesman for the cryptocurrency industry on policy and regulatory matters, has been named first deputy Comptroller of the Currency. The Office of the Comptroller of the...

March 27, 2020 | By Jeffrey Kutler


Ex-Regulator and New York Banker Establish Advisory Firm

William Isaac, a former chairman of the Federal Deposit Insurance Corp. and of Fifth Third Bancorp, and Howard Milstein, a prominent New York banker and real estate developer, have formed a strategic...

March 27, 2020 | By Ted Knutson


FinCEN Penalizes Former Risk Executive for Bank Secrecy Act Violations

A former chief operational risk officer of U.S. Bank, the principal subsidiary of Minneapolis-based U.S. Bancorp, has been assessed a $450,000 civil money penalty for shortfalls in Bank Secrecy Act...

March 13, 2020 | By Ted Knutson and Jeffrey Kutler


New FinCEN Deputy Director Is Also Digital Innovation Officer

The Financial Crimes Enforcement Network, the U.S. Treasury agency that spearheads efforts to combat money laundering and other illicit uses of the financial system, has appointed its first digital...

March 13, 2020 | By Ted Knutson


From the Treasury Department's OFR: A Systemic Risk Monitor

The U.S. Treasury Department's Office of Financial Research (OFR) has introduced Bank Systemic Risk Monitor (BSRM), an interactive tool for monitoring key banking industry metrics in an accessible,...

March 6, 2020 | By Katherine Heires


How to Improve Culture, Governance and Accountability: Proactive and Practical Actions

[Editor's Note: We would like to welcome Thomas Day, the co-owner and vice-chairman of ShortFin Capital Management and TBA LLC, as our new FRM Corner columnist. Thomas has a wealth of financial...

March 6, 2020 | By Thomas Day


It's Time to Start Managing the Complexities of Climate Financial Risk

Many firms recognize that climate financial risk is a complex, far-reaching risk with unknown systemic consequences that could affect all parts of their portfolio. However, they are grappling with...

February 28, 2020 | By Maxine Nelson


Innovation, Collaboration and the Fight Against Financial Crime

Although financial crime has existed for as long as money has been around, it continues to beset financial institutions. The United Nations Office of Drugs and Crime estimates that as much as $2...

February 21, 2020 | By Jason Somrak


Risk and Regulation at Gemini Trust Co., Inside and Out

Market data company CryptoCompare maintains a ranking of cryptocurrency exchanges according to what it terms “a clear methodology to assess risk.” Released on February 12, the latest iteration of the...

February 21, 2020 | By Ted Knutson and Jeffrey Kutler


How to Design an ERM-Friendly Risk Data Architecture

Many organizations now have a chief data officer or “data czar(ina).” Organizations increasingly want to be data driven, and change company culture to value data in the same way they would, say,...

February 14, 2020 | By Brenda Boultwood


Economic Risks Are Up Front in World Economic Forum Survey

For the first time in the 15 years of the World Economic Forum's Global Risks Report surveys, the five highest-ranking risks in likelihood over a 10-year horizon are environmental: extreme weather,...

February 7, 2020 | By Katherine Heires


GRC and Regtech Innovators Expand Their Executive Suites

Fueled by global demand and rising revenue, fast-growing providers of risk and compliance services and technology are building up their senior executive ranks. As announced in January, Vatsa...

January 31, 2020 | By Jeffrey Kutler


CFTC Panel Focuses on Non-Cleared Margin Issues

It is neither new nor uncommon for U.S. financial regulators to maintain dialogue with constituencies that they supervise and other interested parties through committee structures. The Commodity...

January 24, 2020 | By Jeffrey Kutler


Regulatory Change, Economy and Talent Are Top Risk Issues in Protiviti-N.C. State Survey

Corporate executives are contending with so many potential risks that, depending on fast-changing economic and market developments, some have to take priority over others. Among those bubbling to the...

January 17, 2020 | By Katherine Heires


Accounting's Operational-Risk Missing Link

What do chemists and accountants have in common? Surprisingly, quite a lot. They are both data analysts and researchers whose core function is to manipulate and experiment with substances to produce...

January 17, 2020 | By Peter Hughes


Enterprise Risk: The Need for an Integrated Approach

New technologies have broadened and sped up the communication and analysis of data, changing the nature of risks that companies face and how to mitigate them. Banks, for example, have long tended to...

January 10, 2020 | By John Hintze


AEI Economist: Address Climate Change and Income Inequality Together

Climate change and income inequality are issues usually associated with progressive political agendas and denied or demurred on the conservative side. Aparna Mathur, resident scholar at the...

January 10, 2020 | By Ted Knutson


Top 5 Risk Management Predictions for 2020

Brenda Boultwood On the heels of ushering in a new decade, it makes sense to reflect on not only how far we've come but also where we are headed. While risk management is perhaps not completely...

January 10, 2020 | By Brenda Boultwood


7 Key Elements of Effective ERM

If a company wants to minimize the effects of risk on its capital and earnings, reputation and shareholder value, it must implement a comprehensive enterprise risk management (ERM) program. A...

January 3, 2020 | By John Thackeray


How to Design and Build an Integrated ERM Framework

Recent scandals involving Australian and UK banks leave little doubt that we must design integrated enterprise risk management (ERM) approaches that weave “common sense” into decision-making. When...

December 20, 2019 | By Brenda Boultwood


Non-Financial Risks: Developments in Accounting

We intuitively understand accounting measures such as profit or equity. The corporate world places great reliance on them. For example, they are used to communicate and evaluate a firm's financial...

December 13, 2019 | By Peter Hughes


A Hard Look at HIPAA Compliance

Unprepared, unaware, confused, bewildered - these are reactions we regularly encounter when discussing compliance with the Health Insurance Portability and Accountability Act's (HIPAA) Privacy and...

December 6, 2019 | By Teresa Wilkins and Chris Isaacs


Europe's Sustainable-Finance Action Plan Gets U.S. Exposure

More than a year and a half since the European Commission published its Action Plan on Financing Sustainable Growth, an EU official told a financial industry gathering in Washington, D.C., that he is...

November 27, 2019 | By Ted Knutson


In Communications Monitoring and Compliance, the Complications Keep Mounting Up

Financial firms' communications compliance may never have been entirely easy. But the explosion of mobile technology, social media, chat and collaboration platforms raises to new levels not just the...

November 22, 2019 | By Ted Knutson


How Foreign Policy Impacts Sanctions Compliance

Sanctions have become increasingly frequent and nuanced to meet current political and economic realities. They are imposed, lifted and modified regularly, often within a few days' or weeks' time, due...

November 22, 2019 | By Charles Delingpole


How to Lead and Better Manage Risk Through Change

Organizations are always going to have to grapple with change - whether it's in the form of a major corporate shakeup, sweeping adoption of transformative digital technologies or shifting industry...

November 22, 2019 | By Peter Bannister


Think-Tank Scholar Alex Pollock Takes Senior Role at Treasury's OFR

Alex J. Pollock has been named principal deputy director of the Office of Financial Research, a U.S. Treasury Department unit that principally supports the multi-agency Financial Stability Oversight...

November 15, 2019 | By Jeffrey Kutler


How Will Climate Change Impact Banks?

Since the issue of climate change stress testing burst onto the radar screen, I've become a little obsessed by Hurricane Katrina. That event, in 2005, not only caused widespread human suffering and...

November 15, 2019 | By Tony Hughes


Climate Risk Reality: A Wake-Up Call for Risk Managers

Contrary to the current contemporary narrative around climate change, from a risk manager's perspective, the scientific and political argument around climate change is now over. Governments and...

November 1, 2019 | By David Kelly


How to Build a Well-Understood Risk Management Program

[Editor's Note: This month, GARP is transitioning from Cliff Rossi to Brenda Boultwood as our CRO Outlook columnist. We'd like to thank Cliff for all of his thought-provoking contributions, and also...

October 18, 2019 | By Brenda Boultwood


Fraud Risks Climb in Number and Complexity, Kroll Survey Indicates

Cybersecurity, geopolitics, third-party relationships, social media and reputational threats factor into a fast-changing, increasingly complex risk landscape, as revealed in the Kroll Global Fraud...

October 18, 2019 | By Katherine Heires


Prevention Through Prediction: How Technology, Data Analysis and People Can Build Intelligent Resilience

While resiliency has always been a cornerstone of risk management in financial services, the focus has shifted considerably over the past two decades, from an emphasis on business continuity and...

October 4, 2019 | By Andrew Gray


Banks Rally Behind UN Sustainability Campaign

With the financial consequences of climate change increasingly capturing boardroom attention, and under the spotlight of Climate Week events coinciding with the United Nations General Assembly...

October 1, 2019 | By Katherine Heires


Risk Management Reflections and Lessons for the Future

Having had a front-row seat to the excesses of the boom that fueled the financial crisis of 2008-2009, I've been asked over the years what suggestions I have for current and future risk managers in...

September 27, 2019 | By Clifford Rossi


Commentary: Are We Truly Capitalist?

The version of capitalism that has dominated global markets for the last half century is being rightfully questioned as never before. Whilst over a billion people have been pulled out of poverty over...

September 27, 2019 | By Bertrand Piccard


Can the Financial Industry Make Us Climate-Resilient?

That the world is warming is increasingly undeniable, and by all observations and credible scientific projections, the consequences of this warming will grow more far-reaching and disruptive to our...

September 27, 2019 | By Stacy Swann and Alan Miller


The Transparency Task Force's Unfinished Business

A decade since the financial crisis began to subside, “the system is basically OK,” Andy Agathangelou says. But it still “needs to be fixed.” Agathangelou in 2015 formed the Transparency Task Force...

September 27, 2019 | By Ted Knutson


Global Warming Tops a Ranking of Extreme Risks

Global temperature change ranks No. 1 on a list of 15 extreme risks compiled by the Thinking Ahead Institute (TAI). The institute, a not-for-profit outgrowth of Willis Towers Watson Investments'...

September 24, 2019 | By Ted Knutson


Senior Regulator Joins ACA Compliance Group; CFTC Hires Coinbase Counsel

Executive appointments announced on successive September days reflect continuing steady demand for legal and compliance expertise - along with a bit of a twist in the proverbial revolving door...

September 20, 2019 | By Jeffrey Kutler


Bad Workplace Culture Is on Private Equity's Profit-Making Radar

With total assets under management now in excess of $3 trillion, private equity has grown from a cottage industry into a substantial percentage of the global capital markets. With maturity comes...

September 13, 2019 | By Steve Wiesner


CFPB Could Play AI Regulation Role, Bank Policy Institute Says

The Bank Policy Institute (BPI), an association representing the biggest U.S. banks, is suggesting that the Consumer Financial Protection Bureau “lead an effort” to modernize and coordinate...

September 13, 2019 | By Ted Knutson


Stewardship and Governance Principles Gain Broad Backing

Institutional investors have historically made their collective voices heard through organizations such as the Council of Institutional Investors and International Corporate Governance Network. Now...

September 6, 2019 | By Katherine Heires


The Power of a Positive Culture

Senior management “cannot anticipate every problem,” Jacob Rosengarten points out. That is where a well-functioning corporate culture, relying on the observations and actions of “people who are...

August 23, 2019 | By Jeffrey Kutler


Data-Protection Regulation's Next Wave

Financial institutions and other companies are facing major challenges in gearing up for state privacy laws taking effect across the U.S. - and not just the most prominent of them, the California...

August 23, 2019 | By John Hintze


Data and Technology Are Reshaping the Risk Profession

To assess how rapidly the field of risk management - and the skills required of risk professionals - are changing, Frank Roncey looks through the lens of data. “The way we understand data, the way we...

August 16, 2019 | By Jeffrey Kutler


Hester Peirce on Innovation: A Vision for 'Open' Regulation

Interviewed on a recent Intercontinental Exchange podcast, Hester Peirce of the U.S. Securities and Exchange Commission said that contrary to what people in the cryptocurrency community may believe,...

August 16, 2019 | By Jeffrey Kutler


Technology Takes Edge Off AML Costs

Financial industry executives continually bemoan - often without precisely disclosing - the high costs of compliance, which has stimulated interest and investment in automated solutions, particularly...

August 16, 2019 | By Ted Knutson


Comprehensive Reform Is Needed to Reduce Mortgage Risk

The conservatorships of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac - one of the last major unresolved matters of the financial crisis - have recently received heightened...

August 16, 2019 | By Clifford Rossi


Climate Change: Evolution and Impact on Financial Risk Management

The presidential nominee of the European Commission recently endorsed the idea of creating a European bank focused on climate change, and the European Union is trying to figure out how to eliminate...

August 9, 2019 | By Robert Sales


For William Dudley, the Financial Crisis Yielded More Than Just Policy Insight

Like other central bankers and regulatory officials who had a front-row seat on the financial crisis and contributed to the recovery efforts that followed, William C. Dudley took certain lessons from...

July 26, 2019 | By Jeffrey Kutler


ESG: Risks, Opportunities and Benefits

In today's world, it's becoming impossible to ignore the rapid shifts taking place in relation to the environment, society and corporate governance. Business models are evolving, as are the wide...

July 26, 2019 | By Robert B. Hirth and Rodney Irwin


Fighting the Next Crisis Requires a Different Response

While economists and market pundits remain divided on whether a recession is coming or not, it is worth investigating how policymakers would react if it were it to happen. In the past, a combination...

July 3, 2019 | By Sidharth Kamani and Julien Demeulemeester


Who Will Act on Income Inequality?

In his victory speech on May 23, 2019, India's newly re-elected prime minister, Narendra Modi, said that “from now on, India will only have two castes: the poor and those that want to remove...

June 28, 2019 | By Sai Nitya Bodavala and Nupur Pavan Bang


The Evolution of Climate Risk Management in Financial Services

The treatment of climate risk at financial institutions has changed significantly over the past five years. Whereas it used to be viewed mostly as a reputational risk that could be addressed through...

June 28, 2019 | By Jo Paisley and Maxine Nelson


Comments Invited on 'Three Lines of Defense' Update

The Institute of Internal Auditors has opened a public comment period on proposed updates of the risk management and control model known as the three lines of defense. A milestone in a year-long...

June 21, 2019 | By Jeffrey Kutler


Goals of Workplace Inclusion Remain Elusive

It is well within the reach of companies to make the effort to ensure that there are more women in leadership positions, and that those who are receive sufficient support to flourish at their jobs....

June 14, 2019 | By Sai Nitya Bodavala and Nupur Pavan Bang


Regulators and Innovation: It's Not Just Sandboxes

Since 2016, when the U.K. Financial Conduct Authority and the Monetary Authority of Singapore launched sandboxes for financial technology startups, regulators in dozens of countries have gone the...

June 14, 2019 | By Ted Knutson


Climate Change Stress Testing

For risk modelers at lending institutions, climate change represents an enormous challenge. Until now, stress testing has focused on acute short- and medium-term recession risk and has avoided...

June 7, 2019 | By Tony Hughes


FinCEN Guidance: Crypto Firms Take Notice

On May 9, 2019, the Financial Crimes Enforcement Network issued guidance on the Application of FinCEN's Regulations to Certain Business Models Involving Convertible Virtual Currencies. While the...

June 7, 2019 | By Ted Sausen


Climate Change Comes into Sharper Focus as a Financial Risk

“Climate risk may adversely affect the balance sheets of financial institutions and therefore may be relevant for financial stability, in particular if markets are not pricing the related risks...

June 7, 2019 | By Katherine Heires


Critical Voices from the Crisis Past

Before stepping down from the Federal Reserve Board of Governors, where he served for eight years, Daniel Tarullo had some parting shots. Four months before his April 2017 departure, as the Obama...

May 24, 2019 | By Ted Knutson and Jeffrey Kutler


At the OCC, Operational Risks Are Broadly Defined

From fintech to vendor risk, and from cloud computing to risk management talent, the issues on Beth Dugan's mind reflect a broad swath of emerging and evolving challenges for both regulators and the...

May 17, 2019 | By Ted Knutson


To S.P. Kothari, Regulation, Investor Protection and Profits Are a Virtuous Circle

Nearly 10 years since the U.S. Securities and Exchange Commission created its Division of Economic and Risk Analysis - on an organizational par with other divisions including Corporation Finance and...

May 10, 2019 | By Ted Knutson


Rising Through the Regions: John Turpen's Road to CRO

In 2018, John Turpen completed a nine-year run with U.S. Bancorp. He had risen to chief risk officer of corporate and commercial banking at the Minneapolis-based banking company after previous stints...

May 10, 2019 | By Jeffrey Kutler


The Whistleblowing Dilemma

To be or not to be a whistleblower? Forget money laundering, tax evasion and ransomware. Do something legal and rewarding, become a whistleblower, and you could receive millions, all tax free. The...

May 3, 2019 | By John Thackeray


Stress Testing and Shadow Banking

Supervisory stress tests imposed new and burdensome compliance requirements in the immediate aftermath of the 2007‐'09 financial crisis. With time and experience, perceptions have changed. By 2018,...

May 3, 2019 | By Jeffrey Kutler


IBM's Watson and Thomson Reuters in Regtech Collaboration

In the latest extension of the Watson artificial intelligence technology for financial industry regulatory compliance, IBM has announced a collaborative offering with Thomson Reuters that aggregates...

May 3, 2019 | By Jeffrey Kutler


Why AML Transaction Monitoring Analytics Are Essential

Financial services firms are under more pressure than ever to prove that their approach to anti-money-laundering (AML) transaction monitoring is working. Regulators want to see evidence that firms...

April 26, 2019 | By Ranjith Ramachandran


A CRO on the Human-AI Balance

Risk professional jobs will be saved - or less jeopardized - by the superiority of humans over artificial intelligence and machine learning in dealing with behavioral matters, according to State...

April 18, 2019 | By Ted Knutson


Lagarde Calls Out 'High Fiscal Cost' of Corruption

The managing director of the International Monetary Fund commands attention when she speaks about the global economy. The financial world took notice April 2 when Christine Lagarde titled a speech to...

April 12, 2019 | By Ted Knutson


Surveillance Sells in Crypto Sector

Regulatory clarity and institutional-grade infrastructure are regarded as keys to taming the “wild west” of cryptocurrency markets and attracting more mainstream trading interest. In addition to...

April 1, 2019 | By Jeffrey Kutler


Leading Risk Management from the Front Line

Building a successful risk management program isn't just about implementing a robust risk system or advanced analytics. It's about enabling a cultural shift by embedding a pervasive sense of risk...

March 29, 2019 | By Brenda Boultwood


Clarifying Tax Reform: The Definition of Interest

Regulations typically aim to clarify vaguely written laws and ultimately reduce risk for those affected. Several regulatory proposals stemming from recent tax reform seek to provide companies with...

March 22, 2019 | By John Hintze


ESG for Bankers: A Risk-Based Approach

In response to a growing body of evidence that competitive returns and societal benefits are not mutually exclusive, investor demand for socially conscious investments has surpassed $20 trillion in...

March 8, 2019 | By Desiree O'Niell


SEC Fills Key Risk Positions

Gabriel Benincasa, an attorney and CPA who has worked in senior roles at CIT Group, Bridgewater Associates and other firms, has been named chief risk officer of the U.S. Securities and Exchange...

March 4, 2019 | By Ted Knutson


Regulatory Reporting - The Outlook for 2019

More than a decade has passed since the global financial crisis. The crisis exposed a range of risk vulnerabilities - both in the financial regulatory system and by the ways financial institutions...

February 22, 2019 | By Anita Bafna, Vadim Tovshteyn and Steven Thiakodemitris


Risk Management Lessons from the Wells Fargo Report

Clifford Rossi In response to a string of high-profile risk management incidents experienced over the last several years, Wells Fargo recently released its Business Standards Report, summarizing its...

February 15, 2019 | By Clifford Rossi


Ken Phelan Steps Down as U.S. Treasury Chief Risk Officer

Ken Phelan, who in November 2014 became the first chief risk officer of the U.S. Treasury Department, stepped down as of early February. His departure also created a vacancy at the Office of...

February 15, 2019 | By Ted Knutson


OCC Names Senior Deputy Comptroller for Supervision Policy

The March 2 retirement of Grace Dailey, a 36-year veteran of the Office of the Comptroller of the Currency, is prompting a distribution of her responsibilities as senior deputy comptroller for bank...

February 8, 2019 | By Ted Knutson


For Both Regulators and Banks, Tech Learning Curve Is Steep

No longer mopping up from the financial crisis a decade ago, regulators are turning their attention to technology and its impact on their activities and on the firms they regulate, Ernst & Young says...

February 1, 2019 | By Ted Knutson


Geopolitical Risks on the Rise, World Economic Forum Finds

The World Economic Forum Global Risks 2019 report paints a grim picture of complex, intensifying and interconnected risks - most urgently “geopolitical and geo-economic tensions” - and a world...

January 25, 2019 | By Katherine Heires


Regulators Signal Readiness for AI in AML

A statement by regulators regarding technology implementation in the anti-money-laundering environment will have a significant impact on how financial institutions will select and implement new...

January 18, 2019 | By Ted Sausen


CECL, IFRS 9 and the Demand for Forecast Stability

Suppose I have two competing forecasting methods, each designed for CECL or IRFS 9 loss provisioning. Both would pass muster with regulators and auditors. How do I decide which is better? This is a...

January 11, 2019 | By Tony Hughes


Why We Need a Different Approach to Supervisory Stress Testing

If you Google 'stress test,' you'll most likely see a person on a treadmill, hooked up to electrodes, with an ECG monitoring his or her heart. A stress test for a financial institution is similar: it...

January 4, 2019 | By Jo Paisley


When CEOs Wade into Controversy

Corporate chief executives do not regularly speak out on public issues, but when they do, their comments are magnified by news media, and there can be consequences for the companies and their...

January 4, 2019 | By Katherine Heires



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