StratexPoint enables organisations to clarify their strategic objectives, align their risk appetite and manage their key risks to enable the sustainable execution of their strategy.
In the last 12-18 months, in the lead up to the introduction of the Senior Managers and Certification Regime one of the most talked about topics has been individual accountability. Creating clarity of accountabilities is critical for the success of any organisation.
In light of the SMR and an industry-wide focus on individual accountability, I wonder if now is the right time to propose that as an industry (Financial Services) and as a profession (Risk Management) we agree to kill off the artificial construct that is the Three Lines of Defence model.
It is my view that the Three Lines of Defence model gets in the way of developing the right organisational culture, the one I described in my book as a ‘strategy-focused, risk-aware’. And it gets in the way of the risk management team, particularly operational risk, preventing them from engaging with the business correctly in terms they understand.
The new Senior Managers & Certification Regime will come into force for Banks on 7 March 2016. This new regulatory regime will then be applied across Financial Services over the next few years.
Many Banks have started their preparations for this major regulatory change (those banks that have not started, should get started!). As part of their overall approach to the SMR, banks are starting to consider software solutions to enable them to effectively meet their current and on-going regulatory obligations under the SMR.
Not surprisingly, there is a lack of clarity about what are the requirements for a software solution to support the SMR so here is my ‘Starter for 10’ requirements.
There is little doubt that the new Senior Managers Regime and Certification Regime will prompt the Firms to connect the dots between day to day operations and accountability, but it’s questionable whether it will change the culture in Financial Services.
In July 2014 the regulators announced their intention to ‘Strengthen accountability in banks’ in their joint consultation paper FCA CP14/13/PRA CP14/14 that introduced a new regulatory framework for individuals:
Proposals for regulatory references were outlined in the consultation paper published by the regulators yesterday. Firms are already required to provide references upon request, the new regulation requires Firms to request references for people that fall within the Senior Managers and Certification regimes.
StratexSystems has been named Risk Management Firm of the Year UK by Finance Monthly in the M&A Awards 2015. The Finance Monthly M&A Awards recognise the achievements of advisory and legal firms that play a crucial role within the financial services industry.
The Senior Managers Regime has received a multitude of press coverage over the past month due to the announcement of additional rules (and the broadening of the existing rules) by Mark Carney, governor of the Bank of England, in his speech last Month. The 'final rules' were released at the beginnning of the month in CP15/22 Strengthening accountability in banking. The rules establish Carney's aim is to create a ‘culture of accountability’ by introducing precautionary, precise and punishable measures.
Catch up with the latest news on the SMR below, or read our summary here.
Actually, I had W10 installed in a preview back in January and found some very annoying bugs that made me uninstall it and go back to W8.1. Finally (and it looks like it is literally finally as they say this is the last version of Windows ever) I reinstalled the real W10 on the 29th July... And realised much to my surprise that the bugs that made me uninstall it were still there.
The consultation paper CP15/22 Strengthening Accountability in Banking, details the new changes to the Senior Managers and Certification Regime. These are mostly clarifications following some confusion over the rules, but there are also a few alterations and additions. Highlights are:
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Risk-Based Performance Management
The methodology that underpins our software solution
Accepting and managing risk is necessary for success, but how much risk can an organisation take before it becomes unstable? Our book, written by StratexSystems CEO- Andrew Smart shows how risk can be managed as part of business strategy. Pulling together into a single framework the two separate disciplines of strategy management and risk management, this book provides a practical guide for organisations to shape and execute sustainable strategies with full understanding of how much risk they are willing to accept in pursuit of strategic goals.