Enhancing a Bank’s International Operational Risk Management to Address Regulatory Findings

Bridgeforce trusted advisors were the driving force behind the design and delivery of enhancements to address regulatory findings of the operating model and risk management framework for the international arm of a large US-based bank. The result was a complete satisfaction from the auditors.

Answering Regulatory Findings in International Operational Risk Management

A large US bank with international operations needed to address regulatory findings on their international operational risk management in the second line risk function. Bridgeforce was called in to help the client meet the regulatory expectations with a redesigned risk management program.

After the client implemented new evidencing practices, the auditors were completely satisfied.

Comprehensive Current State Assessment Conducted to find Operational Gaps

Bridgeforce has extensive regulatory expertise coupled with international experience. Our advisors got started right away working with client SMEs to review the regulatory findings to understand how they related to the client’s international operational risk function. At the same time, we familiarized ourselves with initiatives currently underway or already completed as part of an overall company regulatory reset.

Our team completed a comprehensive current state assessment of the second line operational risk activities in the client’s international regions, covering nine countries. We helped the client create a prioritized gap analysis for each region against regulatory expectations and their newly published risk management framework.

International Operational Risk Management Overhaul Across 20 Concurrent Projects

As part of this effort, we completed over 20 concurrent projects and covered 18 different risk types from technology to business continuity to financial reporting. Once the analysis was complete, we defined all remediation activity. The team built a comprehensive and highly detailed suite of implementation and change management plans, including a fully defined second line risk operating model.

Prior to implementing the new target model, we made the following enhancements:

• Updates to corporate policy and procedures
• A suite of enhanced international-specific procedures
• International operational risk training materials
• Operational risk reporting, committees and governance framework
• Engagement models across all international regions and functions
• Enhanced international approach to risk type and function coverage
• Second line operational risk oversight routines
• We delivered a detailed fully defined second line risk operating model

Operating Model and Risk Management Enhancements Fully Satisfy Auditor Expectations

At the end of the effort, the client was able to evidence all regulatory commitments, which fully satisfied the auditors. Our work was subsequently shared across the organization as an example of excellence to be followed.

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