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  • Rory Roberts

Embedding Risk Identification into your Company

To embed a risk identification process into a company:

I. Run the risk identification process periodically, updating the risk register and taking action on the material risks, it is important to circulate back to the participants in the Risk Identification process how the results of the process are being used. Regression analyses can be used to establish the effectiveness of the Risk Identification process.

II. Feed the results of the Risk Identification process into the stress testing and reverse stress testing processes of your bank, the Material Risks from the risk identification processes can also be used in creating scenarios for your bank.

III. Senior management at the C- suite level should be regularly reviewing the most material of the risks identified in the risk identification process.

IV. A Risk identification policy should be signed off at the level of the Chief Risk Officer and implemented throughout the company

V. Risk Identification Procedures need to be documented and in place, they should be updated as the Risk Identification process improves over time.

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