Your financial services company wants to grow and compete. Management’s desire to move fast and embrace aggressive growth might seem fundamentally at odds with the goals of risk management professionals. But in fact, the opposite is true.
Most business professionals in the banking industry believe risk and compliance teams have a valuable role and should participate in business processes. But management team members often believe that their organization’s risk management practices are cumbersome and that they can tie up valuable business resources.
Sometimes, a thriving financial services company needs its business and risk management teams to differ in opinion. If the two lines operate with a mutual respect and leadership considers differing viewpoints equally, disagreement can help an organization improve and thrive.
But too frequently, information silos and inefficient workflows create frustration between the front office and risk management professionals, leading to a breakdown in communication and potentially flawed execution of the business’s operating model.
Often, the problem comes down to language. If the business team and risk management professionals aren’t using the same vocabulary and context to describe opportunities and risks, it can be nearly impossible for the two departments to have productive discussions about effective business practices.
The relationship between these two lines of defense shouldn’t be hampered by communication issues. Both teams want the business to succeed – so how can you get everyone pulling in the same direction and sharing their relevant perspectives? The solution begins with rethinking how your risk and compliance teams communicate with the business team.
If you want your organization to maintain an aggressive growth trajectory, your business line needs to recognize agile risk management as a potential new technical approach that can make growth more sustainable. With buy-in and better communication from the front office, risk and compliance teams can become more practical and efficient participants in business planning and execution.
Consider the following steps to get your business and risk management teams on the right path:
Our extensive experience helping banks, credit unions, and other financial services companies achieve integrated risk management led us to create Crowe IRM-as-a-Service. This innovative solution provides a central hub for all risk and compliance activity, and it can help small and midsize financial services organizations streamline communication between the first and second lines.