The Problem We Solve

Most banks have a risk register. Very few have a defensible risk identification process. The difference shows up when the regulator asks "how did you identify this?" and no one can answer.

Billions are invested in measuring and managing risk — credit modelling teams, market risk systems, operational risk databases. But the question that precedes all of that — what are the risks? — is typically addressed in a two-day workshop once a year, producing a spreadsheet that no one revisits until the next regulatory review.

We built a six-phase methodology to fix that gap, grounded in ISO 31000, COSO ERM, and direct experience building and leading risk identification at a European G-SIB and a major international banking group.

The Methodology

Six Phases from Foundation to Continuous Improvement

1
Foundation Setting

External context (PESTLE), internal environment and risk culture assessment, risk criteria, risk appetite, building the starting universe.

2
Dual-Track Identification

Top-down SWIFT workshops and Delphi method. Bottom-up with 10 specialist sub-processes. Mandatory reconciliation and enterprise portfolio view.

3
Assessment & Prioritisation

Four-dimensional scoring. Multi-dimensional impact. Data quality ratings. Bow-tie analysis for critical risks. Cost-benefit with ALARP.

4
Documentation

Living risk inventory with full audit trail. One-page risk profiles for every material risk. KRIs with RAG thresholds.

5
Integration

Direct linkage to ICAAP/ILAAP/CCAR scenario design, strategic planning, Board reporting, and regulatory submissions.

6
Ongoing Cycle

Quarterly re-identification. Event-driven updates. Annual full re-identification. Internal audit assurance over the process itself.

Aligned to 16 regulatory frameworks

BCBS PRA SS31/15 Fed SR 15-18 OCC EBA ECB FCA ISO 31000 ISO 31010 COSO ERM AMLD6 DORA

Risk ID Consulting

Three ways to work together, depending on where you are and what you need.

Free Resources

The complete methodology is available as a free practitioner toolkit.

Self-Assessment

27 questions. 10 minutes. Find out where your risk identification process is strong and where regulators will find weaknesses.

Score Your Process
📦
Free Toolkit

The complete methodology: 16-chapter book, 31-tab Excel template pack, AI prompt library, and Copilot agent definition.

Download Free
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The Book

Bank Risk Identification: The Complete Methodology. 200+ pages covering every phase, with worked examples and regulatory mapping.

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The Evidence

179 Bank Failures. One Recurring Problem.

In every case, the risk was identifiable before the loss materialised. We studied every one and built a methodology to prevent the next.

179
failures studied
10
failure modes
$2.3T
aggregate losses
6
decades
35
countries

Need help with risk identification?

Get in touch to discuss a gap assessment, implementation, or audit-readiness review.

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