Risk Managers – Banking November 14, 2017
Posted by Audit Monkey in The Joy & Pain of Internal Audit.trackback
Can someone please enlighten me on the role of Risk Managers in Banking? From what I can tell and based on prior experience, not alot! So if someone can tell what they are supposed to be doing, it would be appreciated.
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In my company it is a mix of operational controls that COOs don’t want to do, controls assurance and trying to navigate the new product approval process. However, I know it varies a lot. Don’t get me started on second line op risk…
Chris – Thanks for the reply. From what I can see, it seems to be just checking up on the figures Finance produce for capital and liquidity and you don’t need to be paying someone the big money to do that. If they recalculated the numbers from scratch, then perhaps. As for the second line, I’m surprised at how much Compliance Officers earn compared to their actual output and effort, i.e.very little.
The role of Risk Managers differs in each industry and even in every company, not to mention the reporting level of the Risk Manager. In a high regulated industry, like banking, Risk Managers and Compliance Managers/Officers are primarily for compliance purposes. Most risk managers I’ve dealt with are primarily charged with specific risks, so they end up doing very low level work with big title.
Jane
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