There is a lot of pressure for board members at financial services institutions (FSIs) when it comes to risk management. They need to protect more than just data - customers’ money, personal financial information as well as maintain their trust. FSIs become a necessity for board members to provide reliable as well as actionable risk reports.
Common challenges in presenting risk to FSI boardsSecurity and risk professionals face a lot of big challenges, some of which include:
Achieving the Right Level of DetailThere are a lot of industry experts that come on board from different backgrounds who may not necessarily have the experience needed in cybersecurity, digital governance or risk. This needs to be taken into consideration.
Ensuring Data IntegrityThere are may “sources of truth” which can act as problems for organizations. When it comes to any financial services enterprise, there is a high chance there are many business units that use varieties of risk and security tools. If there is no centralized means to produce accurate data, it may result in different lists of issues that will come with different rating systems which will affect the credibility and make it difficult for the board to paint a clear picture of the risk environment.
Achieving Presentation ConsistencyTo achieve consistency in presentation, manual methods are not the best option. There are reports that are required to carry a specific message or advocate for a certain budget request. The reports will be more than just providing data-driven outlooks for the issues in a company.
Five ways to improve your board presentations on risk
- Build credibility
- Establish a common language of communication and ensure it is consistent
- Focus on the most critical issues at hand
- Ensure your process is data driven
- Always ask for feedback and implement it
- For financial institutions, risk management is a high priority
- The financial professionals are answerable to the Board of Directors, who are in turn answerable to all their customers
- Their finances, account details and other personal information needs to be protected from many threats
- To come up with solutions that will help with maintaining the integrity, accurate presentations need to be created and presented to the board for successful implementation and execution of risk management strategies