This session discusses digital transformation in Operational Risk and Internal Controls, with references to financial services but an approach applicable to all industries. The new approach will lay out how to view and manage risks and use those opportunities for future growth. Often times, Operational Risk and Internal Control assessments are tactical and focus on processes; they do not access holistic or layered risks. Furthermore, they are reactive findings based on limited sample sizes, not proactive monitoring for full population. The reviews focus on risk mitigation and not growth potential. Data is frequently in silos and difficult to extract and analyze. Furthermore, there are increasing challenges with increased regulations, rising volumes, credit defaults, limited resources, and complex IT environment.
This session details how to digitize Operational Risk and Internal Control processes and reviews for that go beyond sampling to full population, reduces subjectivity and focuses on exceptions and red flags. It aims to achieve continuous monitoring on real-time data rather than a review on aged data. The process provides for standard views across multiple markets, with lesser disruption to businesses and better cross-functional/ cross-geographical learnings. In the end, it aims to reduce key operational risks in an efficient and effective way and identify future growth opportunities.
Identify risks to digitize in credit, operations, Financial Accounting, AML, Regulatory & Compliance, 1st line vs 2nd line of risk defense
Recognize how to build a digital team that is inclusive, building a digital culture
Determine how to get the right data and build agile learning modules
Apply starting small and scaling up
Assess examples of digitized controls on booking and transactional anomalies, fraud mitigation, and lease classifications
Recognize the impact on effectiveness and efficiency of risk management