Survey Report Objective:
Conduct risk is one of most high priority risks on the radar for most financial services firms. While most firms have historically managed conduct risks, managing it as an independent risk category is relatively new for many.
Despite the intense focus over the last 6-8 years, new high-profile incidents continue to occur globally highlighting that firms are still evolving their risk response strategies for managing conduct risks. This survey is an attempt to assess the current state of how organisations are managing conduct risks across various geographical regions.
Survey Report Objective:
Assessing and managing cyber risk of third parties and vendors has never been more critical. Breaches and security incidents affecting third party vendors continue to dominate the news, leading global regulators to adopt new requirements and closely examine third party cybersecurity programs. With added risk and oversight, boards and senior executives are focusing their time and effort ensuring that they have the right governance, technology, and program framework in place. How have companies responded to these challenges? What are their future priorities and initiatives?
An essential component of our research methodology is to regularly engage with operational risk experts and thought-leaders within our “The Operational & Emerging Risk Advisory Board”. This is a team of carefully selected independent subject matter experts with expertise in one or more of the various operational risk sub-categories (e.g. Fraud, cyber risk, conduct risk).
Director, Operational Risk Management
Head of Risk (LGIM Retail & DC)
Legal & General Investment Management
SVP US Operational Risk Management
Head of Operational Risk
Dominique has over 20 years of financial services industry experience and deep expertise in Operational Risk, Technology, and Process Transformation. Dominique is a Director at Mizuho Bank in the Americas Risk Department providing 2nd line of defense services to all corporate and investment banking business lines across Mizuho U.S. operations.
He is responsible for the build out, implementation and oversight of the Operational Risk Management framework and establishment of related risk policies. Dominique leads a team of Key Risk Officers providing Operational Risk coverage and credible challenge across all non-financial risk domains including third party services, business continuity, data management, transaction processing, conduct and fraud. He architected and maintains the firm’s Operational Risk Appetite Statement. In collaboration with the business, Dominique also spearheads the firm’s Key Risk Indicator Program.
Prior to joining Mizuho, Dominique has worked in similar capacities for some of the world’s leading global banking institutions including Goldman Sachs, Morgan Stanley, Deutsche Bank and Citigroup. Dominique holds an MBA and a BS in Industrial Engineering from Rutgers University in New Jersey.
Simon Cartlidge is Head of Risk (Retail & DC) within Legal & General Investment Management. Simon has spent 20 years with Legal & General, previously holding a variety of senior risk management roles in Group, retail investments, and banking business units.
Simon worked on the Solvency II programme, focusing on Pillar 2 (risk framework). Immediately prior to his current role, he was responsible for the Group-wide operational risk framework. Prior to Legal & General, Simon worked for Bradford & Bingley Building Society, as Credit Risk Manager in their retail mortgage business.
I am head of Operational Risk for Santander Services. This covers the back-office operations and technology units of the Retail Bank. I left Oxford University with a degree in Physics and trained as an Accountant at Andersens working in Birmingham and Melbourne. After that I worked as an Internal Auditor, then in Operational Risk at Barclaycard.
Director, Operational Excellence, Global Commercial Services
US Head of Operational Risk Management
Director, Control Assurance and Corporate Insurance
Operational Risk Management Division
Head of Risk
Twenty-two years of banking experience with an emphasis on risk and controls. Mr. Nestore is the Head of US Operational Risk Management at TD Bank, America’s most Convenient Bank. He has been with TD for seven years and has held a variety of roles in Risk Management and Finance including previous work leading the Segment Risk team in Operational Risk. Most recently, he was providing strategic oversight and assisting in the execution of the CCAR strategy.
Mr. Nestore initially joined Operational Risk Management in November 2013 as the Segment Risk Director responsible for leading the Segment Risk Team that provides second line challenge to the major revenue producing US business lines. Those business lines include: Consumer Banking, Regional Commercial, Corporate & Specialty Banking, TD Wealth and Epoch . He joined TD in April 2011 as the Head of Finance Governance and Shared Services where he led teams responsible for: Governance, Controls & Risk, Project Management Office, FDIC Liaison Team, Reconciliation Control Unit, General Accounting and Fixed Assets/ Accounts Payable.
Theresa Reynolds has 20 years of financial services industry experience with time spent in both the first and second lines of defense. Today she is responsible for the Operational Risk Management Validation and the Corporate Insurance Risk Management programs at Capital One. In her assurnacerole, she oversees the second line of defense operational risk management control assurance program. In addition to establishing corporate guidelines and methods, her team is responsible for execution of the assurance strategy for many types of operational risk across Capital One. Additionally, she oversees the insurance function, striving to ensure Capital One has effective contractual risk transfer strategies in place as well as enabling innovation across the Enterprise by finding unique ways to insure risks.
Head of Operational Risk Regulatory Risk Management and Non-Executive Director
Institute of Operational Risk
former Global Head of Enterprise Risk Management Strategy
Senior Vice President, US Head of Operational Risk Policy, Framework, and Capital
Director of Operational Risk Management
Andrew is Head of Operational Risk Regulatory Risk Management. He is also a non-Executive Director of the Institute of Operational Risk. Andrew is probably best known for his work at the FSA and subsequently the PRA. During his time at the FSA and PRA Andrew managed the Operational Risk Review team in the Risk Specialist Division and represented the UK on the BCBS’ and EBA’s Operational Risk working groups.
Jack Sprague is a Senior Vice President and the Head of Operational Risk Policy, Framework, and Capital for the Americas at HSBC.
Jack has worked at HSBC since 2010 and in his current role, he is responsible for designing the Operational Risk framework in the US and developing associated policies and procedures. He is also responsible for the firm’s Operational Risk CCAR program and regional submissions to support global stress tests and economic capital calculations.
Previously, Jack was the Head of Business Risk and Control for the Private Banking division in the Americas, where he implemented a first line risk management program and managed risk and control teams across the US and Latin America. Jack has also held Operational Risk advisory roles at HSBC.
Tom has over 20 years of financial services industry experience and is currently a Director of Operational Risk Management at Mizuho Bank in the Americas Risk Department. As part of the 2nd line of defense, Tom is responsible for the creating the Operational Risk Framework and implementing the tools, including the KRIs, RCSA program, establishing and maintaining the Control Library and Risk Taxonomy, Key Risk Assessments, and integrating the GRC system to all business lines across U.S. operations.
Freek van Velsen
Head ORM Retail & Private Banking
ABN AMRO Bank
SVP, Operational Risk Manager
Bank of the West
Freek van Velsen is Head of ORM Retail and Private Banking since December 2016. In this role Freek is responsible for operational risk management for the Retail and Private Banking activities, including Retail subsidiaries and Private Bank international network. Prior to rejoining ABN Amro Bank, Freek was Chief Financial and Risk Officer of a local member bank at Rabobank where he was responsible for Finance, Risk Management and Corporate Recovery. Freek was previously the Audit Partner for Regional Markets Asia at Royal Bank of Scotland based in Singapore. Prior to joining RBS, Freek was the Regional Head of Audit Asia Pacific for ABN AMRO Bank. Before moving to Asia Freek was based at ABN AMRO’s Head Office responsible for the global audit coordination and reporting of various Investment Banking lines of businesses. Freek started his career as an officer at the Royal Netherlands Air Force. Freek graduated with a MSc in Business Economics from the University of Tilburg and an Executive Master of Finance and Control from the Erasmus University Rotterdam.
Hands-on and results-driven Risk Management Executive with 25+ years of leadership expertise in internal audits, regulatory compliance, controls, and overall strategic audit planning/execution for companies such as CLS Bank, Credit Suisse and UBS and BNP Paribas.
Strong, energetic leader with forte in streamlining processes ensuring compliance with regulatory standards; extensive experience launching internal audit and risk management operations.
Trusted and active advisor in dissecting, analyzing and presenting key strategic financial solutions to executive leadership.
Active volunteer and board member with Bridges Outreach since 2015 focusing on feeding and servicing people in need in NJ and NYC, providing input into the strategic planning process and doing fundraisers with local businesses and schools.
By the Institute of Operational Risk & the CeFPro
A global survey to gather information about the future discipline and direction of Operational Risk and the practitioners who work within it. The results of the survey have been presented in an in-depth 16-page analytical report.
By Aravo and CeFPro
An analytical and in-depth global survey report to help benchmark some of the key questions that can indicate the status and health of your third party risk/supplier risk/vendor risk program.
The Center for Financial Professionals (CeFPro) is an international research organization and the focal point for financial professionals. CeFPro is driven by high quality and reliable primary market research. It is this market research that allows us to provide an excellent portfolio of peer-to-peer conferences, live interactive webinars, industry led content and a membership area for the industry to connect.
The Center for Financial Professionals (CeFPro) would like to introduce ‘Operational and Emerging Risk Research’, a global research arm, impartial and based on end-user perspectives and feedback from key operational risk suppliers.
Earlier this year we released a high-level operational risk report with the Institute of Operational Risk (IOR) titled ‘Perspectives on operational risk management and practice’ which published the results of our survey conducted with over 650 operational risk professionals. In Q1 2019 we will be publishing two specific reports, namely: ‘Emerging issues in third party cyber risk’ and the ‘Current state on conduct risk management’.
(Keep an eye out – During the course of 2019, we are looking to undertake an extensive and international operational risk survey and rankings report.)
How can you contribute? Add your voice to the research by taking part in one or more of our operational risk surveys here…
RESILIENCE | FUTURE OF OPERATIONAL RISK | EMERGING RISK | REGULATION | CHANGE / EXECUTION RISK | CONDUCT RISK | CYBER RISK
DAY TWO STREAM ONE: BUSINESS MANAGEMENT
GOVERNANCE | RISK APPETITE
BUSINESS CONTINUITY | VENDOR RISK
CONTROLS | LIBOR | CAPITAL
DAY TWO STREAM TWO: EMERGING TECHNOLOGY
ROBOTICS | AUTOMATION | FINTECH
DLT / BLOCKCHAIN | OPEN BANKING
DATA PROTECTION | FRAUD & AML
Head of Retail Governance & Control COO Retail & Business Banking
– Head of Operational Risk, Compliance and Risk Review
Global Head – Fraud Risk Oversight
CRO Barclays UK Ventures
Head of Operational Risk Regulatory Advisory
Head of Fintech Risk