self-reporting, the goal of achieving a
strong risk management DNA is more
important than ever. The most successful banks achieve this through support
from the Board, momentum from the
leadership, and adoption from key departments across the organization.
Alignment towards common goals:
■ ■ ■ When bank departments operate
independently of one another, it creates
the silo effect; often times an individual
department does not understand what
other departments are doing, nor their
impact on the organization as a whole.
By sharing relevant information and
engaging in meaningful conversations
across risk disciplines, a willingness to
open the lines of communication develops and an ongoing dialog to benefit the
entire organization is established.
Consistent risk scoring
■ ■ ■ Once the communication is established, the ability to compare risk types/
levels across disciplines can be developed. Aggregating similar risks and
comparing- the impact of various risk
types against each other is a valuable resource for making informed decisions.
of new opportunities:
■ ■ ■ Even though most risk management
practices focus primarily on preventing
losses or damage to the institution (
sometimes referred to as “value preservation”),
there is also the potential for new opportunities to be discovered (or “value
creation”) where management is willing
to take on additional risk in certain areas
that may have otherwise gone unnoticed.
The ABA provides resources
to help compliance
professionals expand their
Expanding your overall knowledge of
these different risk categories could
have meaningful impact on your bank
and professional development. To
remain competitive, banks and their
employees will continuously need to
challenge themselves and properly plan
for both the known and unknown risks
ahead. We hope this new column will
provide valuable insight and expand
your level of understanding across mul-
tiple types of risk.
In addition to this article, the ABA
continues to expand its risk management training and professional development opportunities. These offerings
currently include: the annual ABA Risk
Management Conference, the Enterprise
Risk Management Advanced Professional Development Program (with partner,
University of Maryland—Robert H.
Smith School of Business), and the ABA
Certificate in Operational Risk Manage-
ment. For more information on these
programs and other risk management
resources, visit aba.com/risk. Member
banks can also visit the online profes-
sional networking site at bankrisknet.
ABOUT THE AUTHOR
RYAN RASSKE is currently Senior Vice
President of Risk and Compliance for the
American Bankers Association (ABA).
Within their Professional Development
Group (PDG), he is responsible for
managing the strategic direction of the ABA
products and delivery channels within the
Risk and Compliance markets to ensure
they meet current and anticipated industry
needs, address new or unique market
opportunities, and continue to provide a
strong value proposition to ABA members.
Reach him at email@example.com. S H U T