Strategic Comparison and Advisory Narrative (SCAN)
Financial Institutions typically establish their own risk management standards and processes with some degree of knowledge of their peers’ standards. However, given the rapidly evolving risk landscape and the increasing power of technology, there is always a possibility that the leaders of today could become the followers of tomorrow.
Furthermore, each firm's understanding of industry best practices is often influenced by anecdotal information, and hence there is a strong need for periodic checkpoints of a holistic comparison: not just on where they stand today, but also how the roadmaps compare.
RISE's SCAN solution is designed to focus on the provision of actionable insights that aid financial institutions in strategic decision-making for their Risk Management and Compliance standards and processes.
Instead of just providing a generic comparison against peers, RISE SMEs engage in meaningful dialogues with each firm’s Risk and Compliance teams and take into account the unique circumstances of their environment. The studies are carried out in full knowledge that each financial institution needs tailored recommendations based upon its own unique risk appetite, risk culture and local jurisdictional constraints.
Value Drivers
- Robust framework comprising metrics, documentary evidence and SME conversations
- Actionable insights through domain inputs from CRISIL SMEs with global experience
- Benchmarks against both domestic and global peers
- Insights into operating models and cost comparisons
- Comparison of roadmaps vs. those of peers
- Customised reports that factor in unique challenges (e.g., jurisdictional constraints)
Key Benefits
Outside-in comparisons
- Access to deep dive, granular benchmarks against global peers
- Actionable insights by domain experts
Strengthen practices
- Identification of gaps to reduce risk of adverse supervisory findings
- Intelligence on industry best practices around recent and future priorities
Monetary benefits
- Unearth hidden rationalisation levers within the operating model
- Understand the best practices of leveraging automation to generate efficiencies
FAQs
RISE will carry out studies across the Risk Management and Compliance spectrum, including but not limited to Model Risk Management, Credit Risk, Climate Risk, Stress Testing, Fundamental Review of the Trading Book (FRTB), Operational Risk and IBOR Transition. The intention is to produce annual studies in each of these areas. The scope of the studies typically span granular understanding of formal policies, on-the-ground practices, governance and control frameworks, operating models and cost efficiency
The key inputs from participating financial institutions are:
1) Assignment of a central point of contact to engage in deep-dive dialogues with RISE SMEs
2) Provision of documentary evidence of policies and metrics
The study results will be published with anonymised peer comparison, which will effectively remove all references to the contributor institution. The final report for each institution will be customised to their requirements
No, because we employ a 'give-to-get' model. Only financial institutions that participate in the study are able to receive the reports/insights
The participants in the study typically include global and regional institutions. To maximise the insights from the study, every financial institution will be provided with a list of all participants. They are also able to choose three peers of their choice, so as to gain the benefits of customised comparisons. However, to maintain confidentiality, the metrics of the selected peers will only be provided in an aggregated and anonymised format
The final deliverables will be a customised report for each institution, with anonymised peer comparison. It will contain an objective assessment of how the institution compares with peers, along with advisory insights and recommendations that the institution can implement to create value-add
Please reach out to us through the contact us link and we will be happy to provide you all the details that you need
A series of metric-driven comparative studies to provide actionable intelligence on best-in-class industry practices, operating models and cost structures