Non-Financial Risk

Industry events and the regulatory landscape have required financial institutions to strengthen their Risk and Control functions across the Three Lines of Defence as organisations aim to increase the effectiveness of controls and safeguard their business.

Risk and Control functions have grown exponentially with many banks doubling or even tripling their headcount in these areas. Citigroup estimate that the associated costs amongst the largest banks is $270bn or 10% of operating costs (Source: Financial Times, 25 Jan 2017).

Insights – Industry Challenges

  • Regulatory Drivers. Robust regulatory action and a driver for cultural change in the industry.
  • Rising Costs. There has been rapid exponential growth of Risk and Controls functions to meet the demand of regulatory compliance.
  • Roles and Responsibilities within the Controls Framework. The Three Lines of Defence framework was designed to ensure responsibility and accountability across the Controls Framework. In practice it has often led to a duplication of control tasks and resulted in blurred roles and responsibilities.
  • Manual Controls. A material increase in control practices, many of which are manually intense such as data processing.
  • Lack of Experience and Talent. Experienced Risk and Control professionals require a premium and add the greatest added value. Offshore location often employ new entrants to the industry with little or no experience
  • Technology. Solutions are often aspirational. Many organisations have tried and failed multiple times in technology delivery.

How Delta Capita can help

Why Delta Capita?

  • Global Practice – Offices in London, Amsterdam, New York, Hong Kong, Singapore, Johannesburg
  • Non-Financial Risk Management Team are skilled and experienced practitioners with more than 70 years of experience in Tier 1 organisations
  • Over 200 employees globally
  • Specialists in Managed Services, Business and Technology Consulting
  • Delivering pragmatic solutions based operational challenges businesses face day-to-day

Managed Service Solutions

  • Delta Capita’s Non-Financial Risk Management Team are industry leading practitioners supported by specialist resources and purpose built technology for this critical control framework
  • Our solutions provide risk and controls standards that prevent audit and / or regulatory failings
  • This allows our clients to address their expense base without compromising standards of governance
First Line of Defence Risk and Controls
  • Trade exception reporting suite
  • Sales and trader level scorecards for non-financial risk management
  • Trader mandate framework
  • Remote booking controls framework
  • Technology development
Front Office Supervision and SMCR
  • Front Office supervisory framework (supervisory checklist, SLAs, senior supervisory mandate attestation, hierarchy)
  • Senior Manager Certification Regime, Role Profiles and Responsibilities Maps
  • UK Legal entity controls
  • Independent supervisory evaluation programmes
Risk and Controls Assessments
  • Review with formal internal reporting (Internal Audit, Compliance and Operational Risk) and external reporting (Audit, Regulatory and Exchange observations and thematic reviews)
  • Devising and and monitoring of business level control improvement plans to assist with prioritisation of resources
Conduct Risk Framework and Governance
  • Residual conduct risk review and remediation
  • Conduct risk dashboards and scorecards
  • Governance programme for forward looking mechanisms (horizon scanning) to proactively identify future conduct risks
  • Embedding conduct risk into risk and controls governance frameworks
Non-Financial Risk Governance Programmes
  • Reputational Risk
  • New Business
  • Operational Risk
  • IT Risk
Client Lifecycle Management
  • KYC: Client onboarding, due diligence, ongoing due diligence, high risk client controls
  • Suspicious trade activity reviews and sanction alerts
  • Client off boarding

David Long

David Long

“Delta Capita’s Non-Financial Risk Management Team are skilled and experienced practitioners with more than 70 years of combined experience in Tier 1 organisations.”

Managing Principal
Charanpal Matharu

Charanpal Matharu

Managing Principal
Nick Wilcock