“With regulatory scrutiny ever increasing, banks need to break down their risk management silos and deploy an enterprise-wide approach to detecting and mitigating risk.
Business and management experts wrote nearly 30 years ago that one of the keys to a successful business is to break down the barriers between staff areas. Author Mary Walton summarized this point in her book, The Deming Management Method: “People can work superbly in their respective departments, but if their goals are in conflict, they can ruin the company.”
How does your bank approach risk? Unfortunately, the traditional method has been for each department to manage risk independently, focusing only on those areas that posed the most threat to their specific operations. Yet, the risk factors in lending directly affect the risk factors in capital management, which influence the risk factors in information security and so on.”
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