Optimal interaction and alignment between 1st and 2nd line risk management in banks

Summary

The revision of the FINMA circular “Operational Risks & Operational Resilience for Banks” addresses several areas, among other the increased independent testing efforts of controls, particularly in connection with ICT (information and communication technology), managing critical data risks, cyber risks as well as operational resilience. Every institution will need to find the optimal balance on these new activities area being handled by 1^st and 2^nd line risk management hence also the question on how to establish an optional interaction and alignment in order to avoid gaps but also to increase efficiency and effectiveness.

In this event we will share and discuss the following topics

1. What are best practices, wrt roles and responsibilities in particular the boundaries between 1^stand 2^nd line?
2. Where is a strict delineation between the lines of defense required and where is a closer collaboration possible?
3. With regards to independent testing of internal controls, what is new in the revised circular and what approaches do banks apply?
4. What is exactly the role of second line in terms of scope and coverage (e.g. reporting, compliance, operational controls) as well as level of assurance (e.g. challenge, oversight, walkthroughs, testing etc)?
5. How are these activities best reported and communicated to executive management and the board?

Presenters

– Nicky van der Klaauw, Head of Non-Financial Risk at Vontobel
– Matthias Supper, Chief Compliance Officer at Bank Julius Baer
– John Shipman, Chief Risk Officer at HSBC

moderated by André-Dylan Kohler, EY

Agenda

18:00 Introduction, André Dylan Kohler
18:10 Presentations
18:55 Panel Discussion
19:10 Q&A, all
19:30 Networking apero, all
20:30 End

Chapter Event

In our chapter events – access for members only – we present one or more speakers to share knowledge, updates and best practices on a specific risk topic. In small groups of risk professionals you can exchange thoughts and test ideas. More on SRA chapters. This event is hosted by the chapter Non-Financial Risks (NFR).