The Challenge
This large financial market infrastructure business was experiencing significant regulatory pressure to improve its risk management arrangements following a critical internal audit report and a series of difficult regulatory inspections. The organisation had already taken steps to appoint a new CRO and he, in turn, wanted to bring in a new team to drive the required changes.
Our Solution
Chris Burt (Halex Consulting) was asked to join the risk function for a short period of around six weeks to support the transition of a new senior risk team and provide executive coaching as needed. Additionally, Chris provided the CRO and other senior risk managers with independent advice and guidance on the steps needed to transform the risk function and the organisation’s wider risk arrangements.
After successfully supporting the transition of the new senior risk team, our engagement was extended, initially for a period of six months but eventually for a total of two years. During this time, Chris provided expert advice, guidance and ‘hands on’ support to the client on a broad range of risk-related matters including its:
- risk management policy including its strategic objectives and Board risk appetite statement
- enterprise risk management framework, operational risk management framework and risk appetite framework
- risk governance arrangements, including Board, Board Risk Committee and executive level committee roles and responsibilities
- Risk Management function
Charter and RM Manual - quarterly CRO report format and content
- responses to regulatory enquiries
- risk management maturity and effectiveness self-assessments (based on the Halex model of risk effectiveness)
Moreover, during the engagement the client brought in a significant number of external (Big 4) consultants to supplement its in-house resources. During this phase, the CRO and SRM’s used Chris to provide an independent view on the Big 4’s advice and quality of deliverables.
The Result
Over a two-year period, the client planned and executed a successful ‘root & branch’ risk transformation programme that touched upon all aspects of its business and risk governance arrangements, including all three lines of defence, senior management and the Board. Regulatory perceptions of the organisation’s risk management arrangements improved dramatically in this period and the CRO garnered significant regulatory goodwill.
Chris’ involvement was intrinsic to this successful outcome.
Other Case Studies
-
Board Performance Review
“Four months later, I still have your report on my desk, split into sections, and find myself referring to it most days.” -
s166 Skilled Person’s Governance Review
Halex Consulting was engaged by a large Skilled Persons panel firm to lead this engagement. -
Risk Management Programme Review
This client is one of the world’s leading international aeronautical, space and defence industry companies.