Wolters Kluwer Financial Services is expanding its consulting services for U.S. insurance and securities firms to help them address the challenges of enterprise-risk management (ERM).
With the increased demand for transparency around risk from regulators, auditing firms and rating agencies, financial firms are feeling the pressure to adopt comprehensive ERM programs. A Wolters Kluwer survey of nearly 185 professionals working at broker-dealers, investment advisors, hedge funds and other types of securities firms showed more than 80 percent of the respondents are concerned about managing risk within their organizations.
And the insurance industry faces similar concerns, with risk management cited as the strongest driver for compliance-related technology investments, according to a survey conducted by Strategy Meets Action in conjunction with Wolters Kluwer.
The Wolters Kluwer consulting team, which includes former compliance and risk-management officers, regulators and attorneys, not only helps firms understand the implications of regulatory changes and requirements, but also helps them employ those changes within the organization so they can successfully integrate compliance, operational and financial-risk management.
A risk-assessment review includes:
- Risk Categorization: Consultants assist firms in categorizing previously identified risks with standard ERM classifications, such as strategic, operational, compliance and financial.
- Risk Ranking and Prioritization: Risks are analyzed, ranked and prioritized on a scale of likelihood and magnitude based on a wide variety of external sources, industry regulatory actions and trends.
- Risk Assessment Report: Risks are confirmed to enable the company to develop further ERM action plans. The consultants provide specific recommendations for changes in workflow, organizational and internal reporting structure, training/education efforts, technology, and attestation or external reporting.
“With their strong industry experience, our consultants can tailor risk assessments to a company’s strategic initiatives, while also taking into consideration what is currently happening within the regulatory environment,” says Todd Cooper, vice president and general manager of enterprise-risk compliance at Wolters Kluwer Financial Services. “With proper risk analysis and reporting capabilities, financial firms are better positioned to make effective decisions and meet the overall goals of the business.”