Global SRN is currently leading a significant market research program on the ‘Impact of Intelligent Automation and Data Analytics on TPRM Operations’. As the leader of this program, I am in the fortunate position to consolidate the input from our 30 TPRM leaders who comprise the Advisor Team and the now 15 Community Partners. Last week I shared the insight pertaining to the skill challenge impacting TPRM operations. I want to share a second observation concerning FLOD structure.
We have received a tremendous amount of comment on the subject of TPRM FLOD structure. What should be a straight forward 3-tier structure, continues to be an area of confusion and exposure across a surprising number of those providing survey input.
Questions are typically in 2 primary areas:
If your FLOD is ‘centralized’:
- How do you make certain your associates are integrated and viewed as a contributor by the line of business team?
- Are they ‘risk-skilled’ – ‘expert in the assigned LOB’ – Both?
If your FLOD is ‘decentralized’:
- Do the associates report to the SLOD organization or LOB?
- Is FLOD activities executed by a full-time associate or are task assigned to existing LOB staff such as vendor management?
- How do you ensure the FLOD activities are viewed as core versus optional?
Both approaches CAN produce the desired and required results IF LOB leaders and risk leaders work together to carefully identify roles, responsibilities, task and activities. While it is no small undertaking, this extra effort always produces positive results.