Big Picture
Risks are present in all institutions. As such, financial institutions must understand their inherent risks and how any controls mitigate those risks. The risk evaluation process is a multifaceted process that is time intensive and requires analytical capabilities.
Client Scenario
Asurity Advisors was engaged by a FDIC-regulated bank to build and operationalize a risk assessment methodology for both fair lending and consumer regulatory compliance. The bank sought a sound and robust risk assessment that provided both quantitative outputs and digestible qualitative risk results that could be presented across and throughout the Bank.
Asurity Solution
As part of the risk assessment, Asurity Advisors developed a consistent quantitative approach to calculating inherent risk, evaluating control design and operating effectiveness, and deriving residual risk. Asurity Advisors provided a detailed methodology report that explained the entire risk assessment process, all calculations performed in the risk assessment tool, and supporting regulatory materials to enhance the validity of the risk assessment. Additionally, Asurity Advisors assisted the bank in control identification and evaluation through sessions with Compliance and the first line of defense. In order to ensure that the Bank could manage the risk assessment process themselves for the future, Asurity Advisors provided procedures and training for the risk assessment tool, leaving the client with a fully functional and manageable risk assessment.