Ryan T. Miller, CIPP/US’ Post

🚨 Attention Financial, Regulatory, & Risk Professionals! 🚨 The latest edition of our "Risk Queue" newsletter has just been published. Did you know there is a “Unicorn Regulation”?  Find out what we are talking about! 🎉📩 The "Risk Queue" is a carefully curated weekly newsletter that covers both financial and non-financial risks in the banking and financial sectors. It is designed for professionals looking to elevate their risk management expertise and stay informed about the latest risk news, AI and Technology risk, regulatory events, and risk trends and insights shaping the financial industry.  Our goal is to provide financial professionals and regulators with the insights and knowledge they need to stay ahead of the curve and enhance their risk management strategies.  “Risk is Everyone’s Business” - and “Risk Queue” helps you put that into practice. 📈🔍By subscribing to our newsletter, you'll gain access to: ✅ A diverse array of risk data to inform your decision-making process ✅ Coverage of the most pressing risks facing the industry ✅ Analysis and commentary  ✅ Practical tips and strategies for mitigating risks and maximizing opportunities If you find this resource beneficial, we encourage you to join our community! https://lnkd.in/efPjCjgY 👉 Subscribe now at https://lnkd.in/ebmT8g95 to ensure you never miss an update. 🙏 If you know someone who could benefit from this resource, please share this post with them and help us grow our community of risk-aware professionals. #RiskManagement #FinancialRisks #BankingIndustry #Newsletter #RiskQueue Much Appreciated, Naeem Q https://lnkd.in/ebwWY-tx

'In the next three years, we will see a surge in the trend towards highly personalised banking services and risk management to suit the profile of a specific client, depending on their needs, also with the help of AI.' https://lnkd.in/es3SkvMb

The Consumer Financial Protection Bureau's Guidance on Credit Denials by Lenders Using Artificial Intelligence highlights the need for increased focus on compliance for financial institutions using third parties and AI-driven models. Treliant expert Daniel Johnson breaks down the guidance, shares how it impacts financial institutions, and explains what FIs should be doing to meet regulatory expectations. Treliant understands these critical pain points faced by financial institutions and can assist institutions in navigating this complex landscape by providing expertise in AI model governance, data validation, and third-party risk management to ensure regulatory compliance. #lending #ai #compliance #modelvalidation

If I were still a regulator, here's what I'd ask 𝗟𝗹𝗼𝘆𝗱𝘀 𝗕𝗮𝗻𝗸 about their risk function '𝘳𝘦𝘴𝘵𝘳𝘶𝘤𝘵𝘶𝘳𝘪𝘯𝘨'. Earlier this week, the FT reported that: Lloyds Banking Group 𝘢𝘹𝘦𝘴 𝘳𝘪𝘴𝘬 𝘴𝘵𝘢𝘧𝘧 𝘢𝘧𝘵𝘦𝘳 𝘦𝘹𝘦𝘤𝘶𝘵𝘪𝘷𝘦𝘴 𝘤𝘰𝘮𝘱𝘭𝘢𝘪𝘯 𝘵𝘩𝘦𝘺 𝘢𝘳𝘦 𝘢 ‘𝘣𝘭𝘰𝘤𝘬𝘦𝘳’. 𝘓𝘦𝘯𝘥𝘦𝘳 ‘𝘩𝘢𝘷𝘪𝘯𝘨 𝘵𝘰 𝘴𝘢𝘺 𝘨𝘰𝘰𝘥𝘣𝘺𝘦’ 𝘵𝘰 𝘦𝘮𝘱𝘭𝘰𝘺𝘦𝘦𝘴 𝘢𝘴 𝘱𝘢𝘳𝘵 𝘰𝘧 𝘦𝘧𝘧𝘰𝘳𝘵 𝘵𝘰 ‘𝘮𝘰𝘷𝘦 𝘢𝘵 𝘨𝘳𝘦𝘢𝘵𝘦𝘳 𝘱𝘢𝘤𝘦’ This seems counterintuitive. A bank that has previously been in trouble for poor risk management shouldn't see the risk function as a blocker, reduce its resourcing or otherwise clip its wings. Now it is entirely possible that the changes being proposed are designed to — and will — enhance risk management. But I have my doubts. Unfortunately, I'm not in a position to ask the firm to explain themselves. But my former colleagues at the regulators are. 𝗜𝗻 𝗧𝗵𝗲 𝗦𝗽𝗼𝘁𝗹𝗶𝗴𝗵𝘁 As a regulator, you can't — nor should you — second-guess or intervene in every decision firms make. But given the way this has been presented, the regulators 𝘤𝘢𝘯 and 𝘴𝘩𝘰𝘶𝘭𝘥 ask probing questions, such as: 1. Staff within the risk function have been described as a '𝘣𝘭𝘰𝘤𝘬𝘦𝘳'. Please provide specific examples of what they have blocked that has led to this description, why you believe they should not have done so and what types of transactions or activities you are expecting them to approve in the future that they would not have done in the past. 
     2. What impact do you think that description will have on the people remaining within the function, how they are perceived by the organisation and, therefore, your overall risk culture? 
     3. What concerns do you think we will have about this, and how have you personally satisfied yourself that you can monitor and address the risks this poses from a regulatory perspective? Where I went next would depend on the answers I got. Particularly to question two. ------------------------------- #Compliance #Risk #RiskManagement #Regulation Original FT article: https://on.ft.com/4aOGxtX Image courtesy of ChatGPT from an early draft of this blog. Not sure about the flower, but the 'Mastermind' style quiz setting seems apt.

HSBC has harnessed Silent Eight’s #AI to dramatically improve its risk management since 2020 – and now I’m excited to announce they’re continuing to step up their #compliance game with our Automated Alert Closure for Transactions   Like the other Silent Eight offerings already part of HSBC’s tech stack, this solution is powered by our signature white-box AI, built with transparency and total explainability in mind. That means it doesn’t just enhance the efficiency and accuracy of risk management – it also significantly improves its auditability, ensuring the bank can easily provide necessary information to regulatory organizations and ensure #compliance to sanctions and other #FinancialCrime-preventing measures.   Learn more ⬇️ #TransactionScreening https://lnkd.in/dJv25uxb

"In this time of technological quantum-leaps, we stand on the verge of a new era—where the fusion of technology and finance isn't just about evolution; it's about revolutionizing” 💡 In my latest blog, I delve into two opportunities to answer couple of persistent challenges that consistently pop up my discussions with clients, and still prove critical for decision-makers in banks. 🔗 Read the full blog here: https://lnkd.in/dpkPmFfr #FinancialCrime #Compliance #GenAI #CaseManagement

How generative AI can help banks manage risk and compliance...

Thanks to Tom Burroughs of Wealth Briefing for interviewing me on the very timely topic of how to balance enhanced #Compliance requirements with friction-free client onboarding. It’s true that financial institutions are being asked to apply ever-tighter #DueDiligence, and that in some instances (particularly with regard to #PEPs) this has led to controversial decisions. But technology holds the answer. #AI supported #pKYC programmes, which constantly monitor risk profiles against vast amounts of data and alert providers to changes, make it possible to vet potential customers and business partners far more rapidly and thoroughly than traditional checks allow. The current situation in the Middle East is likely to see new rounds of #Sanctions and other controls. The global picture is only becoming more complex and faster-moving. Thank you Wealth Briefing for giving me the space to share my thoughts on this matter. https://lnkd.in/e2dDuPKW

Transaction monitoring helps financial institutions safeguard against risks and comply with regulations. But to ensure accuracy and efficiency, FIs need robust data management solutions to optimize their processes, mitigate fraud, and meet regulatory requirements. Read our latest blog to find out more! #AI #Data #DataSecurity #DataAnalytics