DOI: 10.69554/rlll6579 ISSN: 1749-9224

Orchestrating efforts to strengthen risk management: Building a resilient organisation

Elizabeth Frasure, Adam W. Little
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This paper provides insight into how a strong collaboration, including rotating personnel, between the first (operations) and second (risk management) lines of defence within large financial institutions improves unity of effort in meeting regulatory requirements, resiliency capabilities, recovery posture and ultimately protecting business operations and customers’ interests. Rather than the teams being inadvertently incentivised to compete, or fostering an adversarial relationship, the experience of walking in each other’s shoes enables the primary goal of the teams to be mutually supportive. This is a force-multiplier in meeting mission objectives and serving customers through continuous alignment and leveraging their common experiences to better identify and rate inherent risks in the environment, the quality of risk management, and gaps that exist between current capabilities and target states. In this approach, the first line receives valuable support from a team dedicated to risk management and with a wealth of operational experience from previous roles. A second line, which has a depth of experience in resiliency operations, can effectively anticipate and address unforeseen challenges, providing critical advisory support based on technical depth and breadth. The second line benefits from an operations team (first line) who better understand risk management beyond their current role within their office of resiliency plans, testing, exercises, training and education or crisis management. Without this added breadth of oversight experience and depth of knowledge in each of the pillars, the first line tends to limit personnel development to a single or limited set of experiences throughout their career. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

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