Three Ways CROs can Reduce Overspend While Maintaining Risk Function Effectiveness

Risk and Compliance functions are constantly under pressure to reduce baseline operating costs without compromising their performance. However, this is inversely proportional to the ever-expanding remit and size of these functions, presenting CROs with a major challenge.

In the current business environment – with a seemingly constant demand for regulatory reform, concerns about Brexit and an intense focus on costs – the cost of compliance and risk management continues to rise. In many cases, this increase is a consequence of the expanding remit and size of risk functions. However, these functions are still under the same pressure as other functions to optimise costs.

Chief Risk Officers (CROs) all share the same challenge; how to identify areas where spend can be reduced without damaging the performance of the function and the overall risk performance of their firm. Their worry, quite rightly, is that indiscriminate cuts to the risk function could limit its effectiveness in performing its vital role or, worse, cause it to cease functioning altogether.

Contents

1. (Re)Confirming the risk mandate and engagement model
2. Automation
3. Analytics-led risk management