RiskTech Forum

Wolters Kluwer: Senior Managers Regime- Paving The Way For A New Era Of Responsibility

Posted: 3 May 2016  |  Source: Wolters Kluwer


Outside of satisfying another set of regulatory imperatives, these new standards can also be seen as a way to jumpstart efforts on a more robust approach to risk management – where there is a consistent, common focus on creating a culturally compliant organization and a consistent, common way to holistically manage financial and non-financial risk.

This effort to normalize risk management will go a long way toward supporting Senior Managers’ efforts at complying with the personal responsibility aspect of this regulation.

Without formalizing governance approaches to managing regulatory change, streamlining process management and workflow, and automating the procedures for checks and balances on risks and their controls, the risk of non-compliance is high. Not only will regulators not be confident that best efforts are being made to respect the letter of the law, but also it will increase skepticism around the competencies and honorability of seniormanagers’ roles and responsibilities, which could lead to personal fines and banishment from the industry.

It’s no longer commercially viable or wise to leave governance and risk management solely to individual teams or departments, where it has historically been managed in silos and often only reported on when an incident occurs. Firms will not be able to demonstrate they’ve taken reasonable steps if systems and workflow are not somehow interconnected.

This paper explores the challenges and opportunities the new regimes create for relevant firms in general, and senior managers in particular, and what this means for the future.

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