SPEAKERS

Operational Risk Management is at core of a financial institution’s operations. Successful integration of risk management practices, systems, and culture requires a comprehensive, efficient and effective framework – but what defines a “success”?

• Building Risk Culture: Getting a buy-in from all stakeholders
• Governance, Strategy, Risk Appetite, Policies, Structure, Systems – and the need for their constant evolvement
• Designing Effective Operational Risk Management Systems: Integration of Processes, Risks, Controls, Action Plans, Key Risk Indicators, Audit Recommendations, Incidents, Losses… and that’s only a start
• Getting Rid of Data Silos: Integration between Operational Risk, Conduct Risk, Financial Crime Risk…and more to come?

Cyber Security is more and more affected by regulatory (e.g. PSD2, NIS, etc.) as well as external (PCI-DSS, SWIFT CSP, etc.) requirements. To gain visibility on fulfilling the requirements and addressing the risk of missing out any of those, a solid framework for mapping the regulatory and external requirements to company policies respectively to their controls is required. This presentation outlines an approach how this topic can be addressed.

• Gain visibility on fulfilling regulatory and external requirements
• Defining a set of controls to verify adherence to requirements
• Reporting compliance to controls
• Reducing regulatory risks

CRD IV requires financial services to provide independent validation of the Operational Risk framework. This presentation examines the role of the “third line of defence” in auditing Operational Risk.

• Three lines of defence model
• Role of the 4^th line
• How do you audit a framework?
• Different strategies to audit Operational Risk
• Maturity of the framework vs audit methodology

A review of the impact of technology and the ongoing digital explosion in unleashed shows how data is causing a kind of “disruption by default”, adding to operational risk across all sectors of finance, as progress in data standardization lags behind fast growing needs. The presentation then outlines a path to a solution, showing how beginning from feasible initial steps could unfold transformational power. The Global LEI System is presented as one of those early steps on the way to a shared, global, public-good data infrastructure.

• The technology context: How the digital explosion disrupt the technical substance of finance. How that disruption takes data standards and infrastructures from backwaters to critical.
• Our natural senses are blind to finance, we must build artificial senses. What data is needed to power effective artificial senses, i.e. senses that work at the speed and scale of the system?