Internal Control Framework within Private Banking

Summary

The internal Control System (ICS) is an important element of the overall Risk Management framework within Private Banks. The different layers of the Bank’s organization are important parts of the structure of the ICS. The different control types are embedded within the different business and operational processes which are an integral part of the overall ICS. The controls of the first line of defense implemented into the different business processes are mostly important as part of the overall management of the risks. The second line of defense controls which is performed by Compliance and Risks are there to independently ensure that the first lines controls and limitations are properly observed and that risks are managed according to the strategy. In addition, the second line of defense is responsible for regularly testing the existing controls of the 1^st line of defense to ensure that such controls are effective, efficient and reaching the goals established for minimizing, reducing or eliminating risks.

In this event, we shall discuss the views of risk management professionals from the Private Banking industry on how to better manage risk in the Private Banking industry with the implementation of appropriate Internal Control framework.

In particular we shall discuss the following topics:

• The lines of defenses:
  – How is the Internal Control System (ICS) usually organized between the 1^st and 2^nd line within the Private Banking Industry: roles and responsibilities, operational models’.
  – How is the 1^st line of defense organized to managing risks.
  – How Compliance and Risk controlling as 2^nd line of defense are organized.

• The inventory of key controls among the processes:
  – How is the overall control inventory, taxonomy, definitions and related processes within the key Private Banking end to end processes implemented.
  – How are defined the key controls and which criteria are used to implement such controls.
  – How important is automation to rationalize and increase the design and operating effectiveness of controls.

• Testing policies and processes for Key Controls:
  – How is organized the implementation and the regular assessment of the design effectiveness of the key controls as well as the key controls efficiency.
  – How are key risk indicators included in the regular process to evaluate the key risk and related key controls.
  – What are the emerging practices for an efficient control testing function

Presenters

• Carine Casteu, Chief Risk Officer – Chief Compliance Officer at Banque Piguet Galland.
• Xavier Yves Zanota, Global Head of Operational Risk, EFG Bank.
• Gilles Kerouanton, Head of Operational Risk at Banque Pictet & Cie SA.

Moderated by Jean-Noël Ardouin, Partner, Financial Services – Risk Consulting at EY Switzerland and Sub-Chapter Manager for Romandie at Swiss Risk Association.

Agenda

17:30 Doors open – Name Tag Collection
18:00 Introduction of moderator and panelists (Jean-Pierre Colombara)
18:05 ICS Governance (1^st /2^nd lines) (Carine Casteu)
18:25 Controls/ Key Control Inventory (Xavier Yves Zanota)
18:50 Key Control Testing Processes (Gilles Kerouanton)
19:15 Panel Discussion moderated by Jean-Noël Ardouin (All)
19:30 Q&A (All)
19:45 Networking Drinks
20:30 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 Romandie.