Controls Testing Framework: Ingredients & Recipe for Implementation!

Summary

Controls testing requirements entered into force via the FINMA circular 2023/1 on January 1, 2024. This encompasses in particular regularly assessing the design effectiveness and operating effectiveness of key controls which shall be performed and documented by an independent control body. Further, risk control function reports to management shall contain a summary overview of the independent effectiveness assessment of key controls. After some time now with the revised requirements in force, which measures/frameworks have proven to be successful?

In this event we will cover the following topics

• What do best practice organisational and procedural testing frameworks look like? How should roles (e.g. control owner, performer, tester) and responsibilities to be distributed between 1^st and 2^nd Line?
• Potential conflict of interest: Should the second line (Risk – Compliance) be involved in the design of the controls and also in the review and testing of these, or only in defining the testing framework?
  Who should be reviewing and testing of the 2^nd Line’s controls?
• What are the criteria for scoping and also for defining & selecting key controls for testing?
• Should key controls be implemented along all the different chains of processes (Business processes) or should such controls be more controls based on the results outside (outliers) of expected results, still pending, breaks, excesses, shortcomings etc.
• Which approaches are useful for defining control objectives and testing procedures sample sizes?
• What are the required levels of assurance for design and/or operational effectiveness (e.g. testing, review, walk through)?
• What criteria could be used for assessing if design and control execution are sufficient?

Presenters

• Arundhuti Banerji, Head Group Consolidated Supervision at Julius Baer
  Arundhuti heads the Consolidated Supervision Division for Julius Baer and has successfully led the design and implementation of the global governance framework, whilst additionally implementing numerous other complex regulatory projects across various jurisdictions in Europe, Asia and the Middle East & Africa. A Computer Science Engineer and Certified Fraud Examiner by qualification, she has extensive experience in multifaceted Compliance and Risk matters, across various industries (during her time at a Big4).
• Yvonne Kaniowska, Head Compliance at Basler Kantonalbank
  Yvonne Kaniowska brings over 20 years of expertise in compliance and risk management. Currently leading Compliance at Basler Kantonalbank, she previously held senior roles at Baloise Group, specializing in risk governance and internal controls. Her experience spans compliance testing, regulatory change monitoring, ESG, and operational risk management. Yvibbe also served as a lecturer at the Frankfurt School of Finance and Management.
• Nicky van der Klaauw, Head of Non-Financial Risk at Bank Vontobel
  Nicky van der Klaauw is the Managing Director and Head of Non-Financial Risk at Vontobel, based in Zurich. With over 25 years of experience in risk management and leadership, Nicky previously held senior positions at Banque Lombard Odier and JPMorgan Chase & Co., where he oversaw operational risk frameworks and led regional control teams across Europe.
• Alexandra Burns, Partner, Financial Services Risk & Reg at PwC Switzerland
  Alexandra specialises in advising clients on the design and implementation of integrated Risk Management and Compliance Frameworks. An engineer by training, she has over 15 years’ experience in delivering major programmes in the Financial Services and Technology sectors. Her leadership and management responsibilities within the practice also ensure a practical, leading-edge approach, to helping her clients protect and grow their organisations.
• Moderation by Emanuel Hierl, Chapter Advisor of Non-Financial Risk, Swiss Risk Association and Manager at zeb-Switzerland.
  Emanuel Hierl (CIA, CRMA) is Manager at zeb-Switzerland. He brings over 20 years of expertise in Finance and Riskmanagement as well as Audit and Advisory. Her previously held senior roles at different Swiss Banks e.g. at Basellandschaftliche Kantonalbank (BLKB), Raiffeisen Switzerland and Verwaltungs- und Privatbank (VPB). He is specialized in Governance Risk and Control.

Agenda

17:45 Doors open – Name Tag Collection
18:00 Welcome & Introduction (Emanuel Hierl)
18:10 Presentations (Arundhuti Banerji, Yvonne Kaniowska and Nicky van der Klaauw)
18:40 Panel Discussion and Q&A (Arundhuti Banerji, Yvonne Kaniowska, Nicky van der Klaauw, Alexandra Burns and Emanuel Hierl)
19:15 Closing Words (Emanuel Hierl)
19:20 Networking Drinks (All)
20:20 End

Chapter Event

This Chapter Event is available to members and free. We will be presenting one or more speakers to share their knowledge, updates and best practices on a specific risk topic. Within the small groups of risk professionals you can exchange thoughts and test ideas. This event is hosted by chapter Non-Financial Risk (NFR).