In this episode of the Risk Intel Podcast, host Ed Vincent, welcomes Doug Cargnel back to the show to help explain some of the practical aspects of enacting a Risk and Control Self-Assessment (RCSA). Doug is a compliance expert, who brings nearly 30 years of operational risk management and audit experience in the financial sector. Let's explore some of the key themes and best practices shared by Doug during the episode:
Defining the Risk Assessment Universe
First Ed and Doug discussed the importance of defining the risk assessment universe once a financial institution decides to enact an RCSA. Doug emphasizes that this process is crucial but often challenging. Larger banks may encompass all processes and technologies, while mid-sized banks might start with critical products or services. Defining the universe involves decisions on whether to focus on products, major processes, organizational units, or a combination.
Doug highlights the importance of collaboration when defining risk assessments and working with all stake holders to ensure success. Involving business units and those delivering products and services is crucial, ensuring that the RCSA is meaningful to them. While a risk professional facilitates the conversation, the ultimate goal is to secure business buy-in for the defined universe and how it is broken into logical pieces.
Importance of Taxonomy
The conversation shifts to the significance of having a standard and consistent taxonomy. A standardized approach helps in comprehensively addressing various risk exposures. Taxonomies enable a logical discussion about risks and controls, breaking down broad categories like operational risk into specific elements such as people, process, system failures, fraud, and cybersecurity.
Risk Appetite and Aggregation
Doug next explains that defining risk appetite is essential, determining how much exposure an organization can live with. A standardized taxonomy facilitates the aggregation of risks across different RCSAs, allowing organizations to assess whether risks are managed within their defined appetite. This step is crucial for identifying areas that might be out of appetite and require targeted attention.
Pitfalls and Preparations For Implementing RCSAs
Finally the discussion ended on they types of pitfalls to avoid when enacting an RCSA. Pre-work, including clear definition of units, educating business teams on risk and control concepts, and developing a control inventory, is emphasized. Facilitated sessions, led by someone with risk experience, are recommended for effective implementation.
Conclusion
The themes of collaboration, standardization through taxonomy, and effective pre-work are highlighted as essential elements for successful implementation of Risk and Control Self-Assessment (RCSA). This podcast and second episode on RCSA sets the stage for future discussions on tools and regulatory interactions related to RCSA. Stay tuned as we will have Doug back on the show to discuss some different tools to facilitate RCSA execution, best practices to monitor risks once identified.
If you missed Part 1 of this series, read, listen, or watch here.
Emphasize your product's unique features or benefits to differentiate it from competitors
In nec dictum adipiscing pharetra enim etiam scelerisque dolor purus ipsum egestas cursus vulputate arcu egestas ut eu sed mollis consectetur mattis pharetra curabitur et maecenas in mattis fames consectetur ipsum quis risus mauris aliquam ornare nisl purus at ipsum nulla accumsan consectetur vestibulum suspendisse aliquam condimentum scelerisque lacinia pellentesque vestibulum condimentum turpis ligula pharetra dictum sapien facilisis sapien at sagittis et cursus congue.
- Pharetra curabitur et maecenas in mattis fames consectetur ipsum quis risus.
- Justo urna nisi auctor consequat consectetur dolor lectus blandit.
- Eget egestas volutpat lacinia vestibulum vitae mattis hendrerit.
- Ornare elit odio tellus orci bibendum dictum id sem congue enim amet diam.
Incorporate statistics or specific numbers to highlight the effectiveness or popularity of your offering
Convallis pellentesque ullamcorper sapien sed tristique fermentum proin amet quam tincidunt feugiat vitae neque quisque odio ut pellentesque ac mauris eget lectus. Pretium arcu turpis lacus sapien sit at eu sapien duis magna nunc nibh nam non ut nibh ultrices ultrices elementum egestas enim nisl sed cursus pellentesque sit dignissim enim euismod sit et convallis sed pelis viverra quam at nisl sit pharetra enim nisl nec vestibulum posuere in volutpat sed blandit neque risus.
Use time-sensitive language to encourage immediate action, such as "Limited Time Offer
Feugiat vitae neque quisque odio ut pellentesque ac mauris eget lectus. Pretium arcu turpis lacus sapien sit at eu sapien duis magna nunc nibh nam non ut nibh ultrices ultrices elementum egestas enim nisl sed cursus pellentesque sit dignissim enim euismod sit et convallis sed pelis viverra quam at nisl sit pharetra enim nisl nec vestibulum posuere in volutpat sed blandit neque risus.
- Pharetra curabitur et maecenas in mattis fames consectetur ipsum quis risus.
- Justo urna nisi auctor consequat consectetur dolor lectus blandit.
- Eget egestas volutpat lacinia vestibulum vitae mattis hendrerit.
- Ornare elit odio tellus orci bibendum dictum id sem congue enim amet diam.
Address customer pain points directly by showing how your product solves their problems
Feugiat vitae neque quisque odio ut pellentesque ac mauris eget lectus. Pretium arcu turpis lacus sapien sit at eu sapien duis magna nunc nibh nam non ut nibh ultrices ultrices elementum egestas enim nisl sed cursus pellentesque sit dignissim enim euismod sit et convallis sed pelis viverra quam at nisl sit pharetra enim nisl nec vestibulum posuere in volutpat sed blandit neque risus.
Vel etiam vel amet aenean eget in habitasse nunc duis tellus sem turpis risus aliquam ac volutpat tellus eu faucibus ullamcorper.
Tailor titles to your ideal customer segment using phrases like "Designed for Busy Professionals
Sed pretium id nibh id sit felis vitae volutpat volutpat adipiscing at sodales neque lectus mi phasellus commodo at elit suspendisse ornare faucibus lectus purus viverra in nec aliquet commodo et sed sed nisi tempor mi pellentesque arcu viverra pretium duis enim vulputate dignissim etiam ultrices vitae neque urna proin nibh diam turpis augue lacus.
