I often hear of and see this situation played out: It’s time to make an adjustment to the risk management strategy at the financial services institution, and the risk team is nervous about what approach will help get the necessary resources.
Of course, there is no one-size-fits-all, magic formula, but I have a few tips that may help you in your presentation:
- Help your Chief Executive Officer understand the current value that the risk team brings to the business in terms of profitability and protection. Present that information in numbers the CEO can really sink some teeth into.
- Make the new investment in risk management in terms the CEO can relate to – in other words, clearly explain the benefit to the company’s bottom or top line. ROI, ROI, ROI.
- Show risk management as a central plank to the institution rather than an expense – dispel the myth.
In recent conversations that I have had with banking clients that have invested in risk management, it has been both business and risk management collaboratively working together that make their business a success.
For more information on risk management, visit the Risk Management Knowledge Exchange. Industry thought leaders and advisors share their ideas and best practices for current hot topics in risk including GRC, fraud, stress testing, liquidity management, sustainability, financial crimes and high performance analytics. Let me know if you have have a topic idea you'd like to present there.
What tips do you have for helping boards and executives see the value of an investment in risk management? Where do you start?