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Click here to access subscription content at The RTJ Bridge - The Premium Version of The RiskTech Journal 〰️
The RiskTech Journal
The RiskTech Journal is your premier source for insights on cutting-edge risk management technologies. We deliver expert analysis, industry trends, and practical solutions to help professionals stay ahead in an ever-changing risk landscape. Join us to explore the innovations shaping the future of risk management.
Citi's $81 Trillion Error Highlights Urgent Need for Stronger Integrated Risk Management
The startling news that Citigroup mistakenly credited a client’s account with $81 trillion instead of a mere $280 underscores a critical weakness pervasive in today’s financial institutions: insufficiently robust integrated risk management (IRM) systems. This incident, termed a “near miss” by Citi, reveals deep-seated operational vulnerabilities that continue to plague banks, despite considerable investment and regulatory scrutiny.
The Implications of DORA Starting Today: Opportunities for Integrated Risk Management to Drive Resilience
Today, January 17, 2025, marks a turning point for the European financial sector as the Digital Operational Resilience Act (DORA) officially takes effect. This comprehensive EU regulation introduces a harmonized framework for managing ICT risks, requiring financial institutions and their ICT third-party service providers (TPSPs) to meet stringent requirements for governance, incident reporting, and resilience. This article explores the implications of DORA, highlights the four key objectives of IRM, and provides guidance for financial institutions as they navigate this new regulatory environment. For further insights, visit wheelhouseadvisors.com.
Navigating the DORA Deadline: Why Integrated Risk Management is Critical
The clock is ticking for financial institutions and ICT suppliers as the EU’s Digital Operational Resilience Act (DORA) prepares to take effect on January 17, 2025. This ambitious regulatory framework aims to bolster the financial sector's resilience against cyber disruptions, mandating a series of stringent requirements on operational monitoring, incident reporting, and third-party risk management. Yet, the urgency of compliance efforts has uncovered a glaring challenge: organizations without Integrated Risk Management (IRM) systems risk falling short of these critical obligations.
The Evolving Perspective on Generative AI: From Technology Risk to Operational Risk
In financial services, generative AI (GenAI) has rapidly emerged as both a transformative opportunity and a formidable risk. According to a recent ORX survey, three-quarters of financial institutions now classify oversight of GenAI under operational risk. This pivotal shift highlights how GenAI is increasingly perceived as a broader business risk rather than merely a technology-specific challenge. For banks and other financial institutions, this development underscores the necessity of integrated risk management (IRM) frameworks to effectively navigate the complexities of AI adoption.
The Maestro of IRM: Conducting the Masterpiece of Modern Risk Management
In the intricate world of risk management, where every decision plays a crucial part in the overall performance of a business, envisioning the integrated approach of governance, risk, and compliance (GRC) alongside Technology Risk Management (TRM), Operational Risk Management (ORM), and Enterprise Risk Management (ERM) as a symphony orchestra offers a compelling narrative.