The Black Hole of Risk Readiness

Article

In today’s complex regulatory landscape, small and medium-sized financial institutions often fall short in managing risk effectively, leaving them vulnerable to costly compliance failures. Risk expert Craig Spielmann argues that these organizations tend to overlook the strategic value of a robust risk function, often seeing it as a cost center rather than a vital part of their business strategy.

Oct 25, 2024

Craig Spielmann, Risk Intelligence Leader, CNM LLP

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Small to medium-sized financial institutions often fail to derive strategic value from their risk information, which hampers decision-making.
Risk management in smaller organizations tends to be viewed as a cost center, but proactive investment can position it as a strategic asset.
Support from senior leadership is essential to embedding a culture of risk compliance, as demonstrated by successful models in larger firms.
Effective risk management requires tension between risk functions and business decisions, ensuring that all risks are fully considered.