By Edward Kramer, Executive VP, Regulatory Programs
I want to share with you some snippets that I took away from the late April ABA Risk Management Forum in St. Petersburg, Florida:
“Think of better ways for you and your senior management to put in place better ways to measure risk and monitor your risk management practices.”
Mark O’Dell, OCC Deputy Comptroller
“The recent crisis has underscored these valuable lessons about risk management:
* It is important to know and understand all risks, especially correlations, concentrations, and common risks in multiple customers, geographies, instruments or lines of business
* Models and other tools have their limitations, and stress testing is needed to understand them
* A robust risk appetite framework is required to be actively managed including monitoring tolerances and limits
* A strong risk culture is paramount.”
Mary Tuuk, Fifth Third Bank CRO
“Integration of operational and compliance risk management is a lesson in how to mix oil and water:
* The rapidly changing business and regulatory environments have highlighted the critical role of Operational and Compliance Risk Management in institutional performance
* Business needs and growing regulatory expectations for more comprehensive Operational and Compliance risk management processes is why we integrate
* The benefits of integrated management of Compliance and Operational risk into business processes is control and monitoring, and a more comprehensive view of the risk environment.”
James Sproull, SunTrust Banks Chief Operational Risk Officer
