The need for firms to maintain proportionate and robust governance, risk and compliance (GRC) arrangements should continue to be at the forefront of senior management’s minds. We are experiencing an unprecedented level of focus from regulators around the globe on how firms are managed and governed by senior management. With these expectations come increased challenges, responsibilities and risks. An ineffective GRC framework can result in poor decision making processes, an unsatisfactory control environment, and increased operational, client and regulatory risks.
We are all fully aware that the regulatory landscape is changing and, as a result, all firms’ senior management need to regularly review, assess, challenge and understand the effectiveness of their GRC arrangements. Any changes to a firm’s structure, products, services and client types will all impact the GRC framework.
This is a broad topic and whilst one size does not fit all, there are some key steps a firm can undertake to position and manage its GRC framework effectively.
How Duff & Phelps can help
Duff & Phelps provides a holistic solution, capturing the risk profile of the firm through its activities, products, clients and regulatory risk profile by establishing a corresponding control framework and mapping this to the monitoring and reporting requirements. Our approach also fully considers how a firm should be governed and managed by the application of a robust governance committee structure.
The ultimate deliverable provides comfort to senior management that they are adequately equipped to understand and demonstrate their understanding of the risk profile of their businesses.
Duff & Phelps’ specialist team is equipped to assist a wide range of clients with their GRC arrangements across wholesale and retail financial services, including:
- Investment banks including global investment banks and UK and European banks
- Custodian banks/third party administrators
- Inter-dealer brokers and wholesale brokers
- Wealth managers/independent financial advisors (IFAs)
- Wholesale brokers
- Investment managers
- Asset/fund managers