Monitor risks and the effectiveness of associated controls for a financial services organisation

Overview & Purpose

What This Standard Covers

This standard outlines the responsibilities of professionals in risk management, emphasizing the importance of continuously monitoring a financial services organization's risks and the effectiveness of controls in place. It ensures that risks are identified, assessed, and documented effectively.

Performance Criteria

• Review the organization's risk profile and controls with relevant staff.
• Identify and report gaps in controls and weak or ineffective controls.
• Monitor scenarios aligned with the organization's risk appetite and tolerances.
• Review risks to detect changes in impact or probability.
• Evaluate management performance in handling risks using predetermined indicators.
• Assess the need for risk management training and communicate needs.
• Report on the status of risks and controls to relevant stakeholders.
• Escalate actions addressing weaknesses to senior management.
• Inform regulators about material failures in compliance with audit functions.

Knowledge & Understanding Requirements

• Understanding of regulatory requirements impacting risk management activities.
• Importance of effective risk control systems for stakeholders.
• Methods to assess the effectiveness of control systems and reporting procedures.
• Identification of key risk, control, and performance indicators.
• Awareness of training requirements in risk management.
• Familiarity with the organization’s risk assessment processes.
• Knowledge of current business activities and their impact on risk.
• Ability to track risks against the organization’s appetite and tolerances.
• Understanding the integration of risk management with audit and compliance functions.

Relevent Roles

• Risk Manager; Training and Competence Manager.