News, Events and Interesting Reading

Interesting Reading

 As operational risk management comes of age; does it have a future?

 18 February 2019
 The Risk Universe
 Mike Finlay
 TRU June17 Spotlight V3.pdf
As operational risk management comes of age, does it have a future? The proliferation of risk-related roles in financial institutions since the crisis, perhaps counterproductively, has created a series of over-lapping, contradictive disciplines, some of which arguably swallow up the functions that were commonly filed under operational risk. The definition of operational risk itself hasn’t helped things, argues Finlay. After credit, market and liquidity, operational risk is often unhelpfully labelled as “everything else.” Can practitioners continue to manage in this way? And isn’t “everything else” on the risk agenda usually something to do with cyber these days? Perhaps, then, it is the end of operational risk – at least as we know it. Or perhaps, the beginning of a better, more ‘grown-up’ approach to risk management. Note that this is a re-release of an article previously only published under subscription in The Risk Universe (

 RiskBusiness publishes guidance on three lines of defence

 1 January 2019
 RiskBusiness Position Paper
 RiskBusiness International
While there has been a lot of discussion as to what constitutes a three lines of defence model, there remains across all industries and especially within financial services, little understanding of the ramifications of actually implementing a risk agnostic, organisation-wide three lines of defence model.

Drawing upon its experiences in working with a wide range of firms across the globe, of different size, complexity and management structure, RiskBusiness has established a step-by-step guide to help firms establish a robust, proactive three lines of defence model which can stand the test of time. The resultant approach allows for custom models – there is no one size fits all – which have been tried and tested in corporate entities, banks, insurers, asset managers and other firms.

“Three lines of defence is not about risk management,” states Mike Finlay, chief executive of RiskBusiness International. “You cannot try and apply a model that affects corporate structure, individual accountability and, as a consequence, corporate culture by thinking it is a risk management initiative – even worse if you think it only applies to operational risk and perhaps to the compliance function. Three lines of defence is integral to the DNA of the firm, it starts with the vision, mission and values, flows through corporate governance, corporate strategy and overall business objectives into the everyday functioning and decision making of the entire enterprise. It is all about the core principles we base our business on – and how we measure ourselves against the achievement of those principles and our business objectives.”

Global regulation, particularly in the financial services industry, is increasingly focussing on good governance and how the Board and executive management behave and run the enterprise. To comply with the ever increasing volume of regulation and to achieve the firm’s potential, every enterprise should implement a robust governance structure which embraces the three lines of defence concept, making this guidance an invaluable resource for every firm, irrespective of geography, size or nature.

Note that this is a re-release of a white paper previously published in 2014.


 Court imposes $15.7 million civil penalty and lifetime trading ban against precious metals dealer and his company

The Commodity Futures Trading Commission (CFTC) announced today that Judge Robert J. Conrad Jr. of the U.S. District Court for the Western District of North Carolina entered a Supplemental Consent Order (Supplemental Order) against Defendants Hannes Tulving, Jr. (Tulving) of Newport Beach, California, and his company The Tulving Company, Inc., finding that they fraudulently solicited customers in connection with precious metals transactions, misappropriated customer funds, and concealed their fraud with false statements that the customer accounts were profitable.

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 Eftpos malware attack hits 136 US stores

Eftpos supplier North County Business Products has been hit by a malware attack that infected the sites of 136 clients across the US and lifted comprehensive payment card details from shoppers.

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 Bank fraudster back in jail after court no-show

A former bank employee who failed to appear in the Windhoek High Court for the scheduled delivery of a judgement in his trial on charges of fraud and money laundering last week is back in police custody, after being rearrested on Monday.

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 The Airmic Annual Conference 2019

 3 to 5 June 2019
 HCC Harrogate, Yorkshire, UK
RiskBusiness will be participating in the Fujitsu Tech Hub at the Airmic Annual Conference, showcasing our evolving use of artificial intelligence (AI), machine learning and intelligent knowledge bases to assist governance, risk, audit and compliance professionals proactively manage their daily activities. Come and meet GRACie, the first intelligent chatbot (she thinks of herself as a riskbot!) deployed in any GRAC platform.

The Airmic Conference is the only risk management conference where the whole industry comes together to share experiences and influence forward thinking. It has become the most important event in the calendar for the insurance and risk management industry.


 10th and 11th April, 2019
 Hyatt Regency, Cambridge, Massachusetts, USA
 Risk Management Association (RMA)
Come hear RiskBusiness present how AI, machine learning and intelligent knowledge bases can assist governance, risk, audit and compliance professionals transcend reactivity to become proactive in their ongoing activities. Come see the RiskIntelliSet in action and meet GRACie, our intelligent chatbot, who thinks she is actually a riskbot!

The Risk Management Association's 2019 Governance, Compliance, and Operational Risk Conference, GCOR XIII, now in its 13th year, represents the most comprehensive conference for governance, risk, audit and compliance professionals in North America. Having been closely associated with GCOR in its early years, RiskBusiness is proud to return, as a sponsor, an exhibitor and presenting on the use of AI in an integrated manner across governance, risk, audit and compliance.

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