On July 20, 2023, over 30 financial institutions convened to join the inaugural Risk Maturity Framework (RMF) User Group meeting, hosted by Strategic Risk Associates (SRA) and the Risk Management Association (RMA). As trusted partners in risk management, SRA and the RMA were deeply grateful for the engaging discussions and valuable contributions that made this event an absolute success. Below we have highlighted some of the points discussed during the meeting to share best practices and common themes with other customers who couldn’t attend or those looking to advance their risk maturity.
Throughout the session, we delved into how the RMF has transcended beyond being a mere tool to becoming a strategic imperative for countless organizations. Your fellow risk leaders echoed the significance of integrating risk management into the corporate three-year strategic plan. In this context, the RMF serves as a guiding compass, helping you craft strategic plans that navigate risks and capitalize on growth opportunities.
An exciting highlight of the meeting was the discussion on creating gap reports through the RMF tool. The concept of exporting only the gaps in risk maturity resonated profoundly with our audience. Users were excited they are able to create gap reports in Watchtower by filtering the Key Risk Indicator (KRI) report to display items where desired maturity surpasses actual maturity, efficiently addressing crucial issues and monitor progress. We also stressed the importance of focusing on the risk improvement activity (RIA) sections. A bank can capitalize on the RIA section in order to effectively implement a risk maturity roadmap.
"The RMF tool provided validation of where the bank was in the maturity of our risk management. It also gave us a roadmap to get to where we want to be in the future." - VP Risk Management, Blackhawk Bank
For those leading organizations that are new to risk management, educating your board members about the value of measuring risk appetite, and risk maturity emerged as a critical challenge. Our esteemed participants generously shared invaluable insights on addressing this hurdle effectively. Formal agreements and leveraging programs such as those offered by the Risk Management Association (RMA) were identified as potent means to educate and engage the board on risk management matters. A tool like the RMF that offers detailed reporting and data visualization dashboards is also extremely helpful when presenting to the board.
Some User Group members shared their experiences with implementing the RMF, which proved to be inspiring and enlightening for all. One key takeaway from their narratives was the "bite-sized" approach to implementation. Breaking down the framework into manageable steps, dedicating around 30 minutes at a time, helps you and your team gain a comprehensive understanding without feeling overwhelmed.
As a sneak peek for our valued customers, our product team shared a quick demo of a brand-new feature of the RMF Tool, called “Peer Data”. Overall, this much anticipated new feature was overwhelmingly positive and many shared how useful it will be when presenting data to the board and a valuable communication tool. This new feature will allow customers to measure their banks maturity score across each category, attribute and individual maturity questions, to see how they stack up against peers within their asset size group or compared to other segment sizes.
On behalf of the SRA and the RMA, we wanted to express a heartfelt thank you to all participants for being an integral part of this incredible gathering. Your passion for risk management and dedication to excellence have energized us to continue innovating and creating solutions that empower you.
We look forward to hosting more user groups like this in the future. Keep an eye out for more exciting updates and events from SRA as we journey together to unleash the true power of risk management.