Banking risk assessment methodology puts risk into focus

An outdated risk assessment methodology might not provide the necessary insights for properly mitigating risk, and the wrong methodology often wastes time, money, and resources. Identifying a sweet spot in which your organization can be thoughtful about categorizing and quantifying risk is an essential component of being able to adequately handle change and drive business growth.

A harmonized risk assessment methodology that everyone understands and can speak to intelligently creates buy-in from the three lines of defense. That buy-in can improve confidence with regulators because it demonstrates that risk is being managed in a clear and consistent manner.

If your bank’s risk assessment methodology is consistently aligned with the organization’s processes and procedures, then risk can be proactively addressed. Adopting a holistic approach to integrated risk management can generate confidence that all lines of defense are working on risk together. And when the first and second lines are in sync, organizations can be more strategic and proactive about handling risk rather than wasting hours trying to coordinate information, reports, and questions.

Crowe risk management professionals’ years of experience helping banks achieve integrated risk management led us to create Crowe IRM-as-a-Service. This right-sized solution provides a central hub for risk and compliance activity and helps streamline communication. Crowe IRM-as-a-Service includes a library of risk and control content that’s relevant to lines of business, products, and processes. When teams speak the same language, organizations can explore growth strategies with agility and speed.