The challenges in integrating Risk compliance services

The future belongs to organizations that manage risk management with the same earnestness that chases profitability. And those who are still working with instinct are likely to gain time - if they do not charge the appropriate risk premium. But in the medium term, they will lose as they face unexpected losses and their customers move to more reputable banks. Risk compliance services are much more than mathematical models and data. Often, mathematics and data are the easy part of risk management. The challenges lie in integrating risk management into budget and strategy processes, integrating it into rating and remuneration processes, and insisting on risk management.

It is an excerpt from what one of the most skilled and experienced credit risk management professionals is entitled to and very active in the Risk Managers community.  This is important to address the difficult questions left behind by the latest and prolonged crisis in major markets that hit major banking groups, filmy sites like YTS, MKV cage, Tamil rockers & moviementors….etc and senior executives and had a significant impact on the international money market. And the answers are expected to be of particular interest, given that this big crisis has happened while the regulatory framework is becoming more and more pressing. It will also show how strategic the role of risk management and how crucial its contribution to critical business decision making should be. But most importantly, how an organization with a traditional risk management approach can integrate it and treat it as a developmental function.

As a result of increasing pressure in regulated markets and increasingly complex regulatory requirements, together with an increase in threats and risks both internally and externally, companies and organizations are faced with the demand for greater transparency and greater control in management practices. However, in most cases, organizations respond to these challenges with tactical and disconnected approaches, implementing isolated solutions instead of a truly unified vision of controls and risks across different departments and business areas. This leads to duplication of efforts and the inability to have a holistic view of risk exposure at the corporate level. To develop and implement risk control and prevention solutions and regulatory compliance that allows efficient risk management, continuous monitoring, preventive controls and fraud identification. 

The term compliance can be understood as the execution of activities and processes that comply with legal norms and procedures, both internal and external to the organization. That is, the company must follow what the legislation requires and must also establish national policies and an organizational culture that avoids fraud, fines, damage to the reputation of the organization and other risks. These risks can be of different nature, such as legal risk,  not being in accordance with the legislation and codes of conduct that governs the operations of the business; operational risk,  in which the company uses inefficient resources and that can cause damage to it; image risk,  whereby a negligence of conduct, the company can damage its reputation before customers, suppliers and society in general. As you have seen, the scope of the risk compliance services is extremely extensive, and the function dedicated to the management of this risk has developed a lot over time; although it is questionable whether this development is sufficient to satisfactorily mitigate this risk.