Digital transformation is driving widespread change and disruption across the global financial and banking community. To keep pace while effectively monitoring and measuring risk, Second Line of Defense (SLOD) organizations must be able to bring solutions and recommendations to their LOB leaders in addition to credible challenges that are based on insight and knowledge of the underlying operations.

Risk leaders must assess the background, perspective and experience of their organization. Team composition will be key to anticipating tendencies and how they will perform when the pressure is on.

·         Teams dominated with risk and audit experienced professionals may struggle to have credible challenges with LOB leaders and understand operations.

·         Cybersecurity dominated teams may struggle with broader third-party issues crucial to meeting OCC and CFPB requirements.

·         Vendor Management and Procurement experienced team members will understand the tactics to contract, monitor and assess ongoing performance but may lack risk insights.

·         IT operations experienced members will understand the required process workflows and identify breakdowns that lead to potential threats but face difficulty to put these in terms of measured risk.

To provide effective credible challenges and insightful recommendations, risk leaders should assemble balanced teams with comprehensive understanding of the multiple dynamics impacting TPRM. Leverage this multi-disciplined perspective to produce business value and reinforce ERM & ORM as a partner who brings value and provides solutions.