Gillian Weatherill Head of Enterprise Risk
Transcript of Gillian Weatherill Head of Enterprise Risk
Risk-Led Transformation: Journey continues Gillian Weatherill Head of Enterprise Risk
21st March 2013
Agenda
• HML Overview
• Initial Challenge
• Approach
• Successes
• Ongoing
Challenges
HML Overview
Financial Services Outsourcer
• Over £43bn residential and
commercial mortgages currently
under management in UK and
Ireland
• Over 34 Clients including High
Street names
• 1,300 employees based across
3 UK sites, including a 450 seat
call centre handling up to 13,000
calls per day
• Standby Servicer on over 100
transactions, one 48 hr notice
• Ratings:
Fitch RPS2+
S&P Above Average
Initial Challenge
…the year was 2008
• Regulatory interest
• Clients – various views, appetites and approaches
• Process variations
• Change in business model
• Issues from prior years
• Silo based approach to managing risk
Approach
Risk Management Effectiveness Review
Approach
What we wanted from our RMF
Board agreement of the approach and philosophy….
“To promote a risk aware culture, ensuring that effective procedures are in place to identify, assess, measure and monitor risk across HML.”
The objective to provide:
– Clear accountability for the management of risk.
– Independent oversight and challenge of the management of risk.
– Integration of risk management as part of day to day business
Approach
Summary
• Governance – Vision integrated into company strategy
– Committees
– Roles
– Policies
– Reports
• Risk Management Policy Suite
• Risk Management Tools – Stratex
– Maturity Model & BSC
– Risk Champions
• Training & Awareness
• Control Framework – Quarterly RCSA
– Quality framework
….and don’t forget
the workshops!
Success
Outcomes
FSA comfortable
Operational losses reduced
Pillar 2 capital reduced
Rating agency views
Framework implemented and maintenance in place
In Fitch’s rating report on HML published 11th September 2012 it
referred to HMLs risk management framework as being
“significantly enhanced compared to peers” and our tool
demonstrating “best practice within the industry”.
Since HML commenced its
initiative to implement an
enterprise-wide risk
management framework in
March 2008, the Pillar 2 for
HML has reduced by 81.2%
i.e. £40.6m.
Success
Measure the right things
.
95% reduction in the value of losses.
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Success
Measure the right things
Ongoing Challenges
Risk fatigue
Success breeds complacency
Maturity complexity
Awareness and knowledge
Activities become tasks
A final word from the wise…..
“The major difference between a thing that might go wrong
and a thing that cannot possibly go wrong is that when
a thing that cannot possibly go wrong goes wrong it
usually turns out to be impossible to get at or repair.”
Douglas Adams
Author of ‘The Hitchhikers Guide to the Galaxy’
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