1. What’s in a name?
2. Can you measure culture?
3. Emerging technologies
1. What’s in a name?
Within the continued evolution of controls and 1st line risk management, some banks are renaming their control function, risk management. Most say it would make sense to call it operational risk, but as this has its own established 2nd line brand and positioning, this option is (presently with its embedded association) null and void.
Non-Financial Risk is an alternative functional title. Armstrong Wolfe has discussed this with its community for 18 – 24 months and it was the focus of the February 2023 London COO Summit, with this titling clearly becoming increasingly embedded within the industry’s narrative. An alternative could also be strategic risk, but risk management is currently the preferred choice.
The banks that have renamed this function have noted that it appears to be positively changing the nature/feel of the relationship between (previously named) the controls team (now named risk managment) and the business, delivering a heightened level of respect for the counsel/recommendations/direction they offer.
The change of title shifts the emphasis and perception of the function onto a commercial footing. This further impacts the confidence of those within the retitled function, and influences the ability to hire good people: do you want to be a control officer or risk manager?
What’s in a name, you may ask? Why does a title change potentially make such a difference? Some may scoff at this point and suggest those that care are being pedantic, but names and titles are an incredibly important part of identity, and attributed responsibilities and purpose. There can be no doubt that titles carry deep personal, cultural, and career connotations.
Once the change is bedded in, there is also an acknowledgement that it will change the technical and behavioural competencies of the people required to be an in-business risk manager as the role continues to expand beyond controls.
