Risk management has reached an elevated standing in many firms, but shifting regulations and greater visibility at board level has upped the ante.
11. Upskill resources, investing in people who demonstrate sound capabilities in regulatory policies and procedures, liaison with board members (including NEDs) and client facing work in particular.
A critical part of any firm's remit must be to ensure that all members of its risk team possess the necessary skills to fulfill their roles. However, as more attention is diverted to administering governance, responding to requests for information by regulators and facing up to board members, NEDs and clients, the traditional function of operational risk monitoring is getting squeezed.
As firms move over the coming three to five years toward managing even greater complexity — per clients, products and jurisdictions — the risk function will need to be even more anticipatory, acting more as a partner in terms of keeping the business out of trouble, not merely policing or reporting after the fact.
The rapidly escalating number of regulations and complexities to be managed has highlighted the need for firms to invest in versatile individuals who can exercise seasoned judgment, not only on risk matters but also on compliance, legal, internal audit, business, operations or finance matters.
This is a step up from the strategy expressed in previous surveys of hiring and retaining highly skilled resources who are risk specialists.
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