In recent years, the focus on risk management in banking has taken on new life. Credit and market risk are most often associated with our industry. Beyond that traditional definition, BBOK’s risk management process encompasses enterprise-wide risk including liquidity and capital, financial and operational, compliance and audit.
BBOK’s Vice President Enterprise Risk Manager Peg Baldwin is charged with gathering data from all bank departments and disseminating the information to an internal risk management committee that seeks to address and prioritize the identified risks. Information is the key component of risk management. Peg is in the unique position of working with staff in every department in the bank while maintaining a position of independence to compile an accurate picture of BBOK’s risk profile.
“It’s important to look at risk within each bank department and how the aggregate risk affects the entire entity,” says Peg. “I’m not always the most popular person in the bank! But I want our customers and shareholders to have confidence that we have good internal controls in place to operate efficiently and thrive, even in times of stress.”
Peg also coordinates the newly-formed Director Risk Oversight Committee which includes herself, six board members and Bruce Schriefer. Regulators expect board members to assume a greater role in the oversight of bankwide risk components. Quarterly subcommittee meetings address those expectations. BBOK is also considering tools to aid in the compilation and reporting of risk. The purpose is to continue proactively and intentionally identifying and assessing risk.
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• For a compliance document password, contact Peg Baldwin at 800.999.5725