Although a solid compliance program may not help you grow revenue, a weak compliance program can cost you plenty in the long run. On the other hand, ERM programs are different; a solid risk management program is a source of competitive advantage. If your Chief Risk Officer presents the ROI of new investment alternatives after having established a track record of documenting and monitoring ALL the threats to your business, instincts should be to assertively move forward if the rest of the business is sound. But, how do we know when ALL the threats are known and how do we know if serious danger is not on the horizon?

At the recent HIMSS 2019 Conference in Orlando, I was able to attend a number of informative sessions focused on risk management. One session in particular that stood out was the update from the U.S. Department of Health and Human Services (HHS) Office of Civil Rights (OCR), given by Roger Severino, Director, and Nick Heesters, Health Information Privacy Security Specialist.

Do We See the Trends?

A Teenage Perspective is The Fastest Way to Understand Your Risk Appetite

We are pleased to announce that Randy Marsicano has recently earned the designation of NAFCU Certified Risk Manager (NCRM). This designation shows a dedication to understanding enterprise risk management (ERM) methodology and National Credit Union Administration regulatory requirements for risk.

One question that I keep hearing is about the difference between a Key Performance Indicator (KPI) and a Key Risk Indicator (KRI). Examiners are starting to hone in on this now as well, telling us it is something we want to pay attention to. In short, a KPI is a backward looking indicator, and a KRI is a forward looking indicator. One tracks how well you did, and the other attempts to predict where you are going. If you are just starting out in setting up risk indicators for your monitoring activities and Risk Appetite Statement, it is more important to get your monitoring tasks set up and working in a useful way, then to get bogged down in the difference between backward and forward looking. In other words, having some monitoring program in place is better than waiting until all risk indicators are perfectly classified as forward looking or backward looking. That being said, it is important from a regulatory perspective, and just plain good business practice, to be able to monitor risks from both perspectives. You'll eventually want to get to this level of maturity.

Some organizations can have hundreds of vendors, and risk assessing all of them can be a battle. You might not have all the resources you need to do a full risk assessment on all of them and frankly - you don't have to. Here are three tips for third party assessments that will help keep you on track for your organization's security and your regulatory visits.